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Florida makes its money primarily from income tax. If it's your primary residence you can get some tax relief. If its your vacation home you pay the full weight
by yardie 11y ago
Florida makes its money primarily from income tax. If it's your primary residence you can get some tax relief. If its your vacation home you pay the full weight. It hasn't made an appreciable difference in housing prices. Lots of foreign owners know they'll have to cough up a few thousand dollars every year out of their millions of dollars in assets.
- toomuchtodo 11y agoFlorida has no income tax. It has a higher sales tax to compensate (and other tourist-related taxes, such as on hotels and rental cars). Our property taxes are very, very low compared to other states though. You're correct in that you receive an exemption if the property is your primary residence, but you overstate the burden of property taxes on >$1MM residences (its really not that high). People purchase a high dollar value home in Florida because there is no limit to the value protected from creditors (except notes tied to the house) in the event you're sued or declare bankruptcy (1/2 acre of land or less within a municipality, 160 acres if you're in an unincorporated area). Source: I'm a Florida resident.
- lanaius 11y agoCook County sales tax is 10.25%. If you're in downtown Chicago there is a pretty wide area in which restaurants collect an additional 1% tax. And of course there's still income tax. I wish Florida still counted as "higher" sales taxes.
- deleted 11y ago[deleted]
- toomuchtodo 11y agoEverything you mention is true, but that's an artifact of Illinois being fiscally irresponsible. Isn't Gov. Rauner still waging war on unions and still hasn't presented a budget? Priorities man!
- logfromblammo 11y agoThe home rule provisions in the Illinois constitution allow Chicago wide leeway in setting its own tax rates, and in keeping the revenue from such taxes. Chicago has mostly itself to blame for its looming bankruptcy, even though the long train of awful, corrupt governors hasn't helped any.
- toomuchtodo 11y agoAgreed!
- manyxcxi 11y agoI think you mean property tax. Income tax would not have anything to do with their property (unless they were renting it out).
- xlm1717 11y ago>Florida makes its money primarily from income tax. You sure? I haven't had state income tax taken out of my pay check in... forever. I'm assuming you meant to type real estate/property tax, though.