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My wife and family want to move out of Cleveland, OH and we have been doing research on several states. Kentucky is no. 1 on our list and are looking at either the Louisville or Lexington areas. I am a union carpenter and my wife is a registered nurse. I would like to know how taxes would work for our situation, property taxes specifically. The Kentucky Dept. of Revenue property tax listing is a little hard to follow.
We own a 120k house and pay $2100 in property tax, each vehicle we own costs a flat rate of around $80 to register. The sales tax in our county is 7.5% and applies to just about everything.
Additionally, what does the tangible property tax refer to? I could not find any definition on the KY Dept. of Revenue Website.
Any information would be helpful. Thank you.
Clevelander - try the site above. I just checked it out, and it should at least give you a contact to speak with.
I can tell you the tax on your vehicle depends on what the value of the vehicle is, state sales tax is 6%, and the taxes on your home will also depend on the value.
Try the site - I think it is a good starting point.
Thanks for the info. I will check out the site. I will eventually be making calls to the state on various matters and we are planning a visit the end of March/beginning of April. I just wanted to get some information from people who actually live in Kentucky.
If we move, I will be taking around a 7 dollar per hour pay cut, approximately 25%. My research has shown that the cost of living is about 5 to 10% lower depending on which part of Kentucky. I was hoping to make up some of the pay difference by paying less in taxes.
Here is a link to a tax map that shows overall taxes in categories of low, medium and high taxes by state...notice that Ohio is in the medium taxes category while KY is in the low taxes category.
Kentucky has a broad form tax formula. That means if you use it, live in it, eat it, drive it, even look at it, you get to pay a tax. There is a 6% sales tax, an income tax, property taxes on auto's, real estate, intangibles, even a tax on insurance premiums. Although the current governor has done an excellent job (realitively) he is under fire because he was indicted by a political enemy for a misdemeanor and the public hasn't been able to see the forest for the trees. Typically an owner of real estate can expect to pay 1% per year of market value. This amount can deviate by .25% either way depending on the services required/provided by a local government.
Oh, Tomo, you've just figured out the joys of KY taxes! LOL! Yes, it can be real confusing. However, please realize that many of the taxes and fees we pay are deductible! For instance, vehicle registration fees are deductible; if your insurance cost come out of your check AFTER taxes, that's deductible, and there are several more. I guess if you weigh the costs of living in KY with the costs of taxes, we pretty much even out. I know it seems unfair to pay property taxes (I know-we have to pay 2 in 2 different counties!) but whenever I see highway improvements, new schools being built, hospitals being upgraded, and my tax money at work, it doesn't sting so bad.
~joanna~
Oh, Tomo, you've just figured out the joys of KY taxes! LOL! Yes, it can be real confusing. However, please realize that many of the taxes and fees we pay are deductible! For instance, vehicle registration fees are deductible; if your insurance cost come out of your check AFTER taxes, that's deductible, and there are several more. I guess if you weigh the costs of living in KY with the costs of taxes, we pretty much even out. I know it seems unfair to pay property taxes (I know-we have to pay 2 in 2 different counties!) but whenever I see highway improvements, new schools being built, hospitals being upgraded, and my tax money at work, it doesn't sting so bad.
~joanna~
Are you serious about the vehicle taxes being deductable? On the Federal or State or both? I have lived here my entire life and did not know that!
Where do you out it in? In general expenses ?? So glad I read this - getting ready to file - yuck...
Are you serious about the vehicle taxes being deductable? On the Federal or State or both? I have lived here my entire life and did not know that!
Where do you out it in? In general expenses ?? So glad I read this - getting ready to file - yuck...
They are deductible on the Federal, which, as everyone knows, affects the state. It goes under general expenses, when you itemize (the only way you can use it!) Oh, and heads up everyone, there is a new $50 automatic deduction if you have home phone service with long distance! Boy, doesn't every little bit help!
~j~
There is some very interesting (and very dry at times) discussion of Kentucky's tax structure at this site: http://www.kypost.com/2004/11/18/report.pdf (broken link). The report, titled "Kentucky’s Economic Competitiveness--A Call for Modernization of the State’s Fiscal Policies", addresses state and local tax burdens specifically on pages 13 and 47. I was surprised both at the variety of taxes Kentuckians are paying and the report's conclusions regarding the relative tax burden upon Kentucky's residents. It appears tomocox has hit the nail squarely on the head.
Last edited by suncoastman; 02-16-2007 at 02:22 PM..
Reason: added content
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