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1985 Comments on Inter-Area Tax Comparisons 1 (1985)

handle is hein.tera/cintertac0006 and id is 1 raw text is: Tax Foundation, Incorporated One Thomas Circle, N.W., Suite 500 Washington, DC 20005-5802 (202) 822-9050 COMMENTS ON INTER-AREA TAX COMPARISONS The Tax Foundation receives numerous inquiries concerning relative tax costs in different localities. Many of these come from individuals seeking low-cost locations for retirement. Limitations of staff and facilities preclude answering these inquiries in detail. We can, however, provide a few broad guidelines. The three accompanying tables provide an overview of taxes by state. The first table shows total state and local taxes per capita and per $1,000 of state personal income by state and provides each state's ranking, as well as the percentage growth in taxes over the past ten years. Similar infomation appears in the second table, which is limited to property taxes only. The third table gives a summary of rates of the major state taxes (local taxes are not included). Several limitations, however, should be considered in interpreting these data: 1. The figures, if available, for individual localities within a state would be quite variable, especially property taxes. Specific information on property taxes is generally available from a city's chamber of commerce or local tax assessor. 2. The nature of a family's income or wealth (e.g., securities, real property) may have an important bearing on tax costs. Some states levy a property tax on intangible assets--stocks, bonds, and bank deposits; and a few states tax household personal property. 3. All but ten statesa impose some form of broad-based individual income tax, but the rates and bases vary widely from one state to another. Some allow special concessions for persons aged 65 and over, generally in the form of higher exemptions. General sales taxes are levied by all states except Alaska, Delaware, Montana, New Hampshire, and Oregon. In the case of property taxes, the states provide varying types of property tax relief to elderly homeowners (with some extending to renters) generally those below specified income levels. a. States without a broad-based income tax are: Alaska, Connecticut, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. In Connecticut, New Hampshire, and Tennessee, however, certain income from investments (e.g., dividends, interest, capital gains) is taxed.