What state has the lowest state sale tax?

[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