What state has the lowest state sale tax?

[Libertine]

Poster:

You need to check if out of state purchases are hit with any other taxes (other than the sales tax issue). You may not have any, but here in Missouri they have an "intangibles" tax which might, or might not, apply - if they don't get you one way, they will certainly try another. Also, as others have mentioned, you need to check reciprocity agreements. Finally, if you buy out of state what about service? If your local dealer has to service, and if you're subject to some state/local "tax" would they report you?

Bottom line - there's more to the purchase than simply the issue of paying a sales tax upfront with the purchase.

JEH

 

[JohnMiller3]

Re: What state has the lowest sale tax?

<font color="blue">...slip. Just curious, was it intentional?... </font>

No slip, yes I'm curious, yes it was an intentional question... /forums/images/graemlins/smile.gif

 

[Justaplain]

Don't forget Nh has an interest and dividend tax which to me is an income tax. bcs

 

[HayDR]

Cost of living comparison and salary calculator
There is NO tax on a tractor for farm use in TN.

 

[Chief]

CCI, VERY interesting link on the cost of living. Thank you for posting that. The dealer I purchased my John Deere from asked me for my USDA farm #. Tennessee has been cracking down on sales tax avoidance. They will make the dealer pay the sales tax if they determine that sales tax should have been paid. I think that is apretty subjective and inconsistent way of sales tax enforcement. The state of TN drove alot of business out of the state by raising the sales tax that high.

 

[HayDR]

Sales Tax is the most equitable tax, so everyone pays some taxes. Income tax is redistribution of wealth, socialism.

 

[EagleEye]

Re: What state has the lowest sale tax?

hahahaa... I live in NY and while we may pay less than 10% sales tax (8.25% here in Broome county), we probably pay much more in income taxes... /forums/images/graemlins/shocked.gif /forums/images/graemlins/blush.gif /forums/images/graemlins/blush.gif

 

[rozett]

CCI..... I agree completely! I wanted to post that earlier, but didn't want to 'hijack' the thread.

Another way to look at it is that sales tax is a consumption tax. The more you buy, the more you pay....and you can always exempt the basics, like food and clothing. But the bleeding heart liberals think it is shameful to work your a$$ off and increase your income, so they invented 'progressive' income tax. /forums/images/graemlins/mad.gif /forums/images/graemlins/frown.gif

 

[Libertine]

Re: What state has the lowest sale tax?

JohnMiller3:

Sorry, didn't mean was your question intentional. Just whether the slip was.

JEH

 

[Libertine]

Chief:

<font color="blue">The state of TN drove alot of business out of the state by raising the sales tax that high. </font>

ALL taxes of whatever stripe are incentives (or, if you prefer, disincentives) to productive activity. High sales taxes encourage lower consumption (or efforts to avoid the tax). High income taxes encourage efforts to reduce income (or hide it). High property taxes encourage less property improvements. Licensing taxes (and regulations of all sort) encourage increased costs of production. And so forth. Nearly ALL taxes reduce the amount of wealth that would otherwise be produced in one way or another.

Based on some calculations I have made comparing standard of living 100 years ago and today, including consideration of factors such as physical output per man hour, I estimate the drag on the economy (the amount of wealth looted from the productive people) as approximately 65%-75%. Put on simpler terms, without your current tax/regulate system if you can afford one tractor now, you could afford 3 or 4 tractors without that system. But, never fear, the world's been through it all before. The Roman Empire was strangled by taxes and regulations, an increase in dependency of the population, a decrease in the acculturalized of barbarians who settled in the Empire, and so on, (they had many similar problems they were unwilling to deal with - just as we do - including, for example, the demise of the small farmer) to the point it could no longer resist the barbarian attacks. We are simply going through the same process again. Like them, we are more likely to go out with a wimper than a bang (over some generations). Of course, we are raising our own barbarians internally.

My point in the response to the original question about sales taxes was that they are going to stiff you one way or another and it is often simpler (although sometimes a bit more expensive in money) to go with the flow. They're more apt to leave you alone if you pay your protection money. Freedom from harrasssment has a certain value too. TN may have a higher sales tax than Missouri, but it was reported in this thread they have no income tax. One negative offsetting one positive. Results, in the end, comparable rip-off totals. How is the property tax in TN? How about zoning and regulation? Property taxes (at least in my area) are spiraling upward. Regulation/zoning is somewhat moderate (at least in rural area). The reason I'm asking is that I sort of like TN at least the few times I've been there.

JEH

 

[Chief]

CCI & Grimreaper, I agree 1000% with that. The problem with the sales tax in TN is that the state has turned the sales tax into a personal property tax. Sales tax is a tax that is levied at the point of retail sale of new items, NOT used private party sales. A true sales tax can only be levied on an item ONE time during its life unless it is a retail sale. Try buying a used boat or car. No sales tax is required to be collected until you go to register it. You can buy it and own it indefinitely but get zapped when you register it.

 

[Kelvin]

Grimreaper,
</font><font color="blue" class="small">( How is the property tax in TN? )</font>

Each county is different, but to give some specific numbers in my case, my East Tennessee house & lot in the city has an "assessed" value of $115,300 (2300 sq foot 4br/3ba house on a 110x175 lot with a separate 24x40 garage; actual value is probably higher). According to my tax statments, the city and county EACH impose a tax rate of 2.15% on 25% of the "assessed" value.

The bill comes to $620 each or $1240.00 total for the year. Add the 8.75% sales tax, the $23 each year for each personal automotive tag, and approximately $42 for my "farm truck" tag with a 16,000GW tag and that is all the tax Tennessee imposes.

<font color="red"> A NOTE on vehicle taxes </font>
Note that vehicle sales tax is applied any time you purchase a vehicle, regardless of whether you purchase from a dealer or private individual. When a person moves into the state, they can transfer their titles to TN and not have to pay any taxes AS LONG AS THEY CAN SHOW THEY PAID TAXES when they purchased the vehicle (this information is usually posted on the title). I met a guy that moved into Tennessee with a vehicle that he purchased before he got out of the active duty military. State laws at the previous assignment allowed sales taxes on vehicles to be waived for military personnel, so the local court house tried to charge him sales tax on the original purchase amount. He never registered the vehicle in Tennessee and ended up trading it.

</font><font color="blue" class="small">( How about zoning and regulation? )</font>

I would say that that varies greatly by county. In my county each parcel under 5 acres must have paved access, and I believe that they limit new houses to one house per acre when a septic is required. Restrictions such as minimum square footage and mobile home prohibitions are normally subdivision specific.

Kelvin

 

[Libertine]

Kelvin:

Thanks for the info. Doesn't sound too bad. Certainly comparable to Missouri. A little more of this, a little less of that. The more developed counties are probably more regulated than the less developed - same as Missouri.

Did I read in the thread no personal property tax (as opposed to real estate taxes)? If so, that's a positive. In Missouri, they not only punish you for buying (such as a tractor) in sales tax, but then continue to extort money from you every year for permission to continue to own what you bought in the first place in the form of "personal" property taxes. And, they require you to show a personal property tax receipt to renew you license plates. Ugh.

Thanks again.

JEH