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Reply to "Moving Residency for Tax Purposes - Anyone Done This?"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous]My retired relatives do this. They have a really nice Airstream trailer and spend at least 6 months of the year at an RV park in Florida. You need to register your vehicles there, change your driver's license, and voting registration to help establish tax residency. One thing to watch for is that in low income tax states, the government finds other ways to raise revenue, like through property tax, personal property tax, or sales tax. [b]For example Tennessee has no state income tax but sales tax is 7-9% depending on what city you're in. Texas has no state income tax but property tax is about 2% (around the DMV it's around 1%).[/b] [/quote] Whenever someone gives the sales tax makes up for it argument I know they are a low earner and haven’t paid high taxes. Many of us are paying tens of thousands or even hundreds of thousands a year in state income taxes. No, an extra 3% in sales tax on consumer goods and restaurant meals will NOT make up for the $80k I paid last year to my state. Now if you’re a low earner and don’t pay much in income tax then I can see that you might be concerned with sales tax. [/quote] Feel the same way about the MD county tax when people say “But what about the VA car tax….” Sorry, I don’t care about a $2K car tax if my county tax alone is $75K[/quote]
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