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States with no Income tax

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States with no Income tax

Old 09-03-10, 01:15 PM
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States with no Income tax

I'm wondering how states like Florida, Texas, New Hampshire, etc can get by without charging taxes on income. How do they make it up? Are property taxes charged at an obscene rate? And if they can still have a balanced budget with no income tax revenue, why can't other states adopt this model too? Tried a google search but could not find any answers...
Old 09-03-10, 01:17 PM
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Re: States with no Income tax

Property Tax, Sales Tax, Sneeze Tax...

Why would other states adopt a model with no income tax when they can have a model WITH income tax too?
Old 09-03-10, 01:24 PM
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Re: States with no Income tax

Florida charges a "fee" for just about everything. There are "impact fees" for building a new house (it's really a tax, but it sounds so much nicer to call it a fee). There are toll roads all over the place. You also do with less here. There is little public transportation here and Florida public school teachers are some of the worst paid in the country. Even public parks are now charging an entrance fee because budgets are so strapped.

All that being said, it is sunny here and we have nice beaches and palm trees.
Old 09-03-10, 01:25 PM
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Re: States with no Income tax

Well in Florida's case everyone else that visits pays. Tourism Tax. Thank you....
Old 09-03-10, 01:32 PM
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Re: States with no Income tax

Originally Posted by VinVega View Post
Florida charges a "fee" for just about everything. There are "impact fees" for building a new house (it's really a tax, but it sounds so much nicer to call it a fee). There are toll roads all over the place. You also do with less here. There is little public transportation here and Florida public school teachers are some of the worst paid in the country. Even public parks are now charging an entrance fee because budgets are so strapped.

All that being said, it is sunny here and we have nice beaches and palm trees.
Fees and toll roads are in all states. And i don't recall ever driving on a toll road in FL except when i was traveling south for vacation. Oh, and not only do i have to pay state income tax in CO, I also have to pay $300 - $400 a year to register my car. At least you don't have to worry about that in FL.
Old 09-03-10, 01:44 PM
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Re: States with no Income tax

Nevada also has no state income tax.

We do have high sales, property, gaming and tourism related taxes though.
Old 09-03-10, 01:44 PM
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Re: States with no Income tax

Nevada has gaming taxes, WY has oil. Florida also has a wealth tax (I think). I don't know if Kentucky has an income tax, but they tax all auto insurance policies along with municipalities. Some total rates go as high as 10%.
Old 09-03-10, 01:48 PM
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Re: States with no Income tax

Washington has no income state, no toll roads, etc. The property taxes vary by the county that is screwing you, but the state amount is relatively low. I pay less in property tax than the similar rural areas in Oregon with an income tax. They tax the hell out of alcohol, though. The sales tax varies from 6.5% to 9.5% (again, based on the locality that is screwing you). We have very high gas taxes.

I can't imagine why any place needs both an income and a sales tax.

Here is a great site that breaks down all the taxes of each state. http://retirementliving.com/RLtaxes.html
Old 09-03-10, 01:49 PM
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Re: States with no Income tax

But we do show up as one of the highest taxed states, as I recall. Probably on business (I know that B&O sucks), and other things like that.
Old 09-03-10, 01:49 PM
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Re: States with no Income tax

Originally Posted by kvrdave View Post
I can't imagine why any place needs both an income and a sales tax.
Close your eyes and imagine... California.
Old 09-03-10, 01:51 PM
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Re: States with no Income tax

So is living/working in Vancouver, WA and doing most of your shopping in Portland, OR the best of both worlds?
Old 09-03-10, 01:57 PM
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Re: States with no Income tax

Originally Posted by WallyOPD View Post
So is living/working in Vancouver, WA and doing most of your shopping in Portland, OR the best of both worlds?
Exactly. I am 2 hours East of both, but we cross the river to another town every time we need to buy stuff. We head to Portland to buy big items. You have to license cars, so they get you on sales tax for that, but if you trade in, you only pay on the difference, and only on dealer trade-ins. They obviously had a good lobbist.

But there are still malls, Costcos, etc. in Vancouver, so it doesn't kill them.
Old 09-03-10, 02:02 PM
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Re: States with no Income tax

Originally Posted by kvrdave View Post
They tax the hell out of alcohol, though. The sales tax varies from 6.5% to 9.5% (again, based on the locality that is screwing you). We have very high gas taxes.
Is that alcohol tax on top of the regular sales tax? If not, then that's not a very high tax rate on alcohol. Here in Minnesota, alcohol gets an extra 2.5% tax on top of the regular sales tax. It varies by county. The metro area is 7.125% sales tax plus another 2.5% for alcohol so alcohol is taxed at 9.625%. St. Paul has a .5% tax for something stupid...I don't even know what, so their sales tax is 7.625% and alcohol is 10.125%.

If alcohol is really only taxed at 6.5% in some places near you, that's a steal.
Old 09-03-10, 02:16 PM
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Re: States with no Income tax

We have no income tax*

of course we have no income to tax**

*actually we do


**I'm not kidding
Old 09-03-10, 02:20 PM
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Re: States with no Income tax

Bottom line is that every state must balance revenue with services provided. Some provide less services, and some raise revenue in different ways. But not sure that anyone has proven that some states are more efficient than others at providing the same services with much lower revenues.

In other words, Florida is getting you in one way or another.
Old 09-03-10, 02:21 PM
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Re: States with no Income tax

Originally Posted by whoopdido View Post
Is that alcohol tax on top of the regular sales tax? If not, then that's not a very high tax rate on alcohol. ...

If alcohol is really only taxed at 6.5% in some places near you, that's a steal.
No, 6.5% was the sales tax he was referring to. Liquor in WA is marked up 51.9% + 16.7 cents/liter
Old 09-03-10, 02:29 PM
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Re: States with no Income tax

Originally Posted by Thor Simpson View Post
No, 6.5% was the sales tax he was referring to. Liquor in WA is marked up 51.9% + 16.7 cents/liter
Sorry I don't follow what you're referring to.

I'm not talking about markup. That's up to the business owner. I'm just talking about the tax rate. If something costs exactly $10, then it's $10 plus the tax rate. In St. Paul, MN it would be $11.01 ($10 plus 10.125% tax), but if the tax rate was 6.5% that same $10 item would only cost $10.65 ($10 plus 6.5% tax)
Old 09-03-10, 02:33 PM
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Re: States with no Income tax

[Lemmy]I haven't paid ANY taxes for twenty-five years, and anyone who does is a FOOL![/Lemmy]
Old 09-03-10, 02:35 PM
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Re: States with no Income tax

Originally Posted by whoopdido View Post
Sorry I don't follow what you're referring to.

I'm not talking about markup. That's up to the business owner.
In Washington, the State is the business owner. No competitors available. I believe the portion they call a true state tax is around 21%.
Old 09-03-10, 02:36 PM
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Re: States with no Income tax

Originally Posted by Thor Simpson View Post
Close your eyes and imagine... California.
I don't have to imagine, I live the dream every day
Old 09-03-10, 02:43 PM
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Re: States with no Income tax

Originally Posted by Numanoid View Post
[Lemmy]I haven't paid ANY taxes for twenty-five years, and anyone who does is a FOOL! And I have sex with a lot of waitresses![/Lemmy]
Fixed
Old 09-03-10, 02:47 PM
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Re: States with no Income tax

From what I remember, NH has a high property tax rate.
Old 09-03-10, 02:50 PM
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Re: States with no Income tax

Originally Posted by Thor Simpson View Post
In Washington, the State is the business owner. No competitors available. I believe the portion they call a true state tax is around 21%.
So there are no privately owned liquor stores?

I'm talking about bars and restaurants too. Instead of my $10 example, use the example of a $3 bottle of beer. Now, some places add tax to it so the $3 bottle of beer ends up costing the customer $3.30 here in St. Paul, but if the tax in WA is 6.5% then it would only cost $3.20. The business owner keeps the $3 and the tax goes to the state.

Many places have tax inclusive pricing for alcohol though, so no matter what the tax rate is, the beer simply costs the customer $3. However, the business owner still has to pay the tax on it. So, in St. Paul the business owner would only get $2.72 and the other 28 cents goes to the state for taxes, but in WA with the 6.5% tax, the business owner would get to keep $2.82 of the $3 and only 18 cents would go to the state for tax.
Old 09-03-10, 03:04 PM
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Re: States with no Income tax

Originally Posted by whoopdido View Post
So there are no privately owned liquor stores?
Nope. You will find beer and wine in a grocery store, however.

Originally Posted by whoopdido View Post
I'm talking about bars and restaurants too.
You know, I'm really not sure there. I don't know if bars and restaurants have to purchase from the state (thus paying the liquor tax up front).
Old 09-03-10, 03:04 PM
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Re: States with no Income tax

At least in Texas, they gouge you on the property tax and sales tax. Houston was like 9% in the city for sales tax. And the property+school tax on my 1400 sq foot townhouse was ~$5k a year.

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