3 Major Tax Measures Defeated

Glanced at Oregon - a girl there had told me there was no income tax. Gees. 11% income and 9% estate is not exactly no taxes! Oh, yeah, and you are not considered a resident if you spent less than 30 days there in any one year (otherwise, you presumably file partial resident forms and pay). It'd be kind of scary just driving through Oregon ... never know when you might be taxed!

Either those guys are spending a ton of money ... OR ... no one there makes any money .... OR ... they're running an enormous surplus AND the Californians that are paying $500,000 for 3bd 2ba houses in gated communities are so shell-shocked they haven't noticed the taxes yet, and think the scenery is worth it. Stockholm syndrome on taxes, anyone?

No sales & use taxes. Annual limit to property tax increases and limits on property tax rates by category.

Congress made up for it by adding tax law amendments to major pieces of 2008 legislation. These include Stimulus Act, Housing Rescue Act, Energy Act, and the Big "Bailout" Act. Lots of things to bedevil tax preparers next season.

It's Washington that has no income tax in that corner of the country.

Don't worry, you can drive across the state on I-5 at a reasonable speed without spending the night ...

-Mark Bole

But if you get a flat, have someone watch your back while you change the tire?

Remember the use tax?

Stu

Right..............

I first "used" that tire in that state, so.....

Oh the wicked tax tales we could weave.

Hmm, sort of like having two flat tires on a country road up in Tugaloo river country. scarrrry!

ChEAr$, Harlan

And just to THINK about their consideration of a second stimulus tax package. brrr....!

ChEAr$, Harlan

My take on that was it's for the unemployed, so pay it out through unemployment benefits or other welfare systems and not involve the tax system. As it is, it'll be January when the new Bozo's take control, and it'll be into February or March before most find their way around inside the beltway, April or May before any respectable (and that may be what keeps it held up for months) legislation comes forward. By then we're well on the way out of the recession they're just now deciding we're in. Most of the 08 returns will be filed.

All I see from this is more business in tax planning for the new 2010 tax laws.

Huh? via umployment benefits? You mean I won't get another

ChEAr$, Harlan

"Harlan Lunsford" wrote

Yeah. Not by the Dems measure.

You didn't first use it for the exercise of lifting it into your trunk in the state where you bought it?

(Is use tax about "first use"? So if I buy something in a no-sales-tax state and use it before returning home, no use tax is owed?)

Seth

"Seth" wrote

First use or consumption. That's the technicals, but it'll never get that far in reality (or yet anyway). As the law is written, if Iwere to go to Phjoenix City Alabama and buy a Big MAc meal then drive into Georgia to consume that meal, the use tax is due on that consumption, although the amount is minimal when consider the cost and the fact that the evidence the tax collector might use is kind of $hi++y.

But lets bring that to reality and address the tire being "used" in that state. A contractor is generally considered to be the end user / consumer of the materials it uses to build the building. They pay sales tax on the materials when they buy them. If, say, the plumber with the contract to plumb a new 150 room dorm at the University calls the toilet manufacturer and gets them to load up a truck for delivery (or they go and get it), then a "use" tax is due from the contractor to the state the building is in - not the state they buy it from.

Absolutely.

(balance snipped....)

Howsoever...... The Georgia use tax is 4%, at least I reckon it is, and since you get a credit for any sales tax paid the other state, Alabama, whose rate is also 4% it nets out to zero.

Clarification: "Phjoenix" = "Phenix" City.

grin

ChEAr$, Harlan

But what about those untaxed groceries purchased in Florida and taken home to Alabama?

If Phenix city were close to Florida, that might matter.

On a more practical note however, Georgia, just across the river doesn't have a state sales tax on groceries, so my wife pays only the local sales taxes of 3% the few and "de minimus" times she shops there.

ChEAr$, Harlan

So in that situation you should eat one fry in Alabama ("first use") to avoid the issue?

Seth

But that won't help with the second fry.

Stu