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That article isn't too convincing since they claim that most of the reason for Texas having a higher effective rate for lower income is sales and excise tax - b
by refurb 4y ago
That article isn't too convincing since they claim that most of the reason for Texas having a higher effective rate for lower income is sales and excise tax - but the sales tax is 9% in California and 6.25% in TX (~8% with local taxes), not to mention gasoline taxes, etc.
Property taxes are higher, but housing prices are lower in TX than CA. From what I've seen they are a bit of a wash (tax rate is double, but housing prices are 50% or less).
And in the methodology section it says "The report also includes the effect of indirect consumption taxes: the sales and excise taxes that are paid initially by businesses rather than individuals". So it looks like they assumed those taxes are passed through to consumers when in fact they aren't, at least not 100%.
They also exclude all tax payers over 65.
- baldeagle 4y ago"Property taxes are higher, but housing prices are lower in TX than CA. From what I've seen they are a bit of a wash (tax rate is double, but housing prices are 50% or less)." This was true years ago, but the cost of housing in Frisco TX and San Diego CA are about the same now. If anything, San Diego may have an edge because it has many older, smaller properties that keep the overall cost down compared to the newly built up mcmansion land of Frisco.
- lotsofpulp 4y ago> but the cost of housing in Frisco TX and San Diego CA are about the same now. I do not understand this. Do you mean cost of housing excluding purchase price? The cheapest 4BR/3BA in or around San Diego is $1.4M, and there is only 1. Property tax will be at least $14k per year. https://redf.in/s4hVXR https://redf.in/s4hVXR Frisco, TX, on the other hand has a ton of 4BR/3BA, and this is a comparable new construction for $1.4M. 4x the lot size, 2.5x the interior space. https://redf.in/hwqzX8 https://redf.in/hwqzX8