Rich will find more ways not to pay tax, they write the tax law anyway, doesn’t matter where they live. Not like living in Florida rich don’t use every possible loophole, including storing their money overseas.
I meant really matter in an economic sense. As in changes behavior. Just like interest rates change behavior. Not they would struggle but as nyclife suggest, maybe consider moving to different location or paying somewhat less for house. At the price points he is talking about in places like NYC area these people aren’t fabulously rich.
$1200 a year tax for the Toyota Highlander?
A county with highest taxes in the country isn’t insane or disgusting?
Are you saying Alabama and Florida have costs of $20k for private school and extra fees to live in gated communities?
There are pros and cons where ever you live. We left Westchester because there is really no point to pay high property tax, especially since we both didn’t work in the city.
Florida is far from perfect, but no state income tax, lower sales tax, and better weather to spend outside is a bonus.
Both our children are in a private school and yes, we live in a gated community, but we are still in the black from getting out of Westchester…
Ha… what is costing us the most is the bi monthly flights to go visit her family 
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Nope and yep.
Very very interesting Bloomberg article you posted. It’s mind-blowing how properties that were literally worthless that no one wanted are worth millions and millions.
Everything is inflated, especially the prices of real estate. Many would disagree but that’s quite fine.
I pulled this from the article:
O’Connell couldn’t afford Manhattan, so he looked to Brooklyn. In 1967, with a loan from his parents, he bought his first property on Henry Street in Cobble Hill for $22,000. It’s now worth $2.5 million.
So let’s break this down. He paid $22,000 in 1967, according to a simple inflation calculation that $22,000 in 1967 is equivalent to approximately $165,000 today, however the building is worth $2.5 million instead. So an insane 11,000%%% increase in 52 years!!!
Now do you really expect that a buyer can pay $2,500,000 and see the same exact 11,000% return he saw in the next 52 years to a value of $275,000,000? The answer is absolutely not!!!
Prices are completely out of whack.
Even if that $2.5 million dropped in half the next 7 years it would still be an incredible return on his $22,000 original investment!
My buddy is in Waterbury he has a RAV4 XLE he paid about $1,100 my brother paid $700 for a Kia optima the town bills the lender and then the lender and then you pay the lender if it’s a lease some towns even send out investigators to drive around and see if there’s any out of state or town car parked at a home for too long so they can tax them we learned the hard way my dad’s younger brother was using my dad’s car but living in a different town the other town noticed the car and my dad got tax bill from both towns he couldn’t fight it ended up paying both taxes lol
jersey is the same way. basically anywhere where you can’t write off SALT is getting crushed. it should affect westchester less because a lot of people there were on AMT and couldn’t really write off SALT to begin with, but the suburbs all around NYC are being crushed. it’s a bit more muted within the 5 boroughs for now.
$1100 per year? For the RAV4?
And I didn’t know they go out and investigate and tax cars with a totally different out of state license plate when the car is at a location for an extended time frame? Thats brand new news to me. Absurd!!!
Out of state or town they’ll scan your plate only way safe is if your house is in the back because they’re not allowed to come into your driveway
Jersey also has the advantage of a much lower sales tax and lower property taxes (versus Westchester). Down the shore, beach towns have extremely low property taxes ($5000 on an $850k house isn’t unusual). The issue with living there is that the commute to NYC is obscene
It’s one thing if you could still buy a starter home, often in town or in slightly less premium areas and feel less pain if the mill rate is high. But today the sub $1M inventory seems to always be snapped up by flippers or mom and pop investors who then pump up the prices. Pricing on back country/ bigger homes is declining but the next wave of buyers can’t afford them and won’t do that commute.
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And the NJ traffic is ridiculous any day of the week, plus tolls every 5 feet on the GSP.
I can more than attest to the traffic, since I work here in NJ, and I sometimes come in on the weekend for an errand if I have to, and it’s atrocious. But getting to work in the morning? Generally no traffic until NJ. The stretch of Bergen I drive through depends on if someone sneezes the wrong way. I have to drive through about 3.5 miles of Weehawken and Hoboken combined, and that is nearly half of the time it takes me to get here/go home – 20-30 minutes, easily on most days. The whole commute is about 75 minutes.
Howard Stern is on channels 100 and 101. He’ll keep you entertained, although not as much as when Artie Lange was there.
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I always forget about AMT. Looked at my 2018 returns and figured out not having to pay the AMT (I paid AMT in 2012-2017) more than covered my lost SALT deductions. Most people in NJ and NY making 200k-500k as a household probably paid that tax before and are not paying it now.
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Most people in ny/nj that i know in that range saw significant increases in their tax bills in 2018. Amt is over 450, i think, so you have to really be up there to see no difference.
Brutal. I would be so stressed out doing any part of NYC/NJ with all the crazy lane changing.
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AMT was most significant between 200k and 500k pre-trump tax reform. Now it doesn’t really bite under 500k.
“In 2015, the most recent year for which full-year data is available, 10.3 million individual taxpayers filed the AMT return, including more than 60 percent of households earning between $200,000 and $500,000, according to The Tax Foundation.”. Source
Of course, I lived in VA and MA, two average tax states, not NJ or NY with higher state and local taxes. AMT savings probably wouldn’t have covered SALT loses if I lived in NJ/NY.
Taxes are one of those funny things that don’t make sense to most of us common folk. I live in Fairfield County, CT (Stamford). Drive 5 miles up a road (or 10 miles down the parkway) from my house and you are in Westchester. The property tax on my modest, 1,431 SQ FT Ranch Home just crept over the 10,000 per year mark. Property tax on my 3 vehicles (2001 Prelude Type SH, 2015 Q40 AWD, & 2017 AWD Pilot Touring) come to approximately $1,098. Things aren’t getting any easier. That’s for sure. BTW, my house in Westchester would have at least $25K property taxes. Elementary schools by me are excellent. The middle schools, not so much.