Why is TN property tax so high? (Knoxville, Murfreesboro: new house, buying)

[Tony1790]

Originally Posted by joee

Tony, your not comparing apples to apples.

on a home you have market value, assessed value, most states/counties use the 25% of assessed value.

these will be assumptions

market value - 100,000
assesed value - 70,000
tax rate multiplier - 5% total

70,000/25% = 17,500 base taxed amount
17,500x5% = 875.00 yearly tax bill

so yup tn is better in my opinion

you live in the city sure taxes are almost double, your paying for all those city livin goodies, but do you really use or need any of them, some do some don't.

9% sales tax rate no biggy, lower rates apply to larger items, i certainly wouldn't wanna pay 9% on a new car.

if you live in the tri cities area or chattanooga who says you have to do your shopping in tn, go to another state it's just a hop skip & jump to ky, va, al, or ga.

I'll add this also, wages may be lower in the south compared to north or west but consumer goods are lower also to offset that so it all balances out in the long run.

from what i have seen in the cost of property in the northwest i don't see how anyone can afford to even live there, the cost of living index is way higher, now compare that to tn.

Joee,

Thanks for the post (everyone else too),

The numbers and math that I used are right off the TN Comptroller website. I was using assessed values for the math. There may be some lag between the market value of a home going up and then the county assessors office adjusting the assessed value upwards, but that's what they get paid to do and from what I understand, they do a good job.

But even using your example, that assumes that there is a 1/3rd lag between the market value and the assessed value (logic would indicate that if the lag is that large, it's fixing to change, but I digress)

You used $70,000 / 25% = $17,500 x 5% = $875 a year on taxes. Do you not think that $875 is a lot of tax dollars on such a small taxable amount??

I have several properties, one I just sold yesterday for $230,000. The annual tax on it was only $1436, that is less than double your example, but on a dollar amount over $200k more.

All I'm saying is that compared to a state with a similar tax structure, no income tax, sales tax of 8.76%, no car tax (annual). Then from what I can observe, the property tax in TN is SKY HIGH! I was just curious as to why, but I suppose it doesn't matter really.

The answer is the taxes are that high, because politicians can raise them that high, for whatever the reason of the day...."it's for the children" or some such nonsense and we the sheeple will.....bah, bah, how much more do we pay, ok.

Yes I hate paying excessive taxes, I just hate watching what the govt does with all of the money that we give them....waste, waste and waste some more, then ask for more tax dollars.

For all of the northeasterners, I hear what you are saying, the high taxes of TN are still low compared to the liberal democratically outrageous taxes of the NE, but even the wild eyed democrats of WA haven't managed to raise the taxes as high here yet.

Lastly, I do sound negative on TN at the moment, but I'm not. It's a nice place with low housing costs, but also low wages and high taxes, but not as high as NC (total differnet story).

I hope to move there, buy a small house on big land in the boonies, away from the city to try and keep my tax bill from eating me alive. But I can forget about building a really big or really nice house as I couldn't afford to pay the taxes on a retired military members wages. But I couldn't afford a big house anyway :-).

Tony

[joee]

you could check out alabama & kentucky i believe there taxes are somewhat lower, areas of texas has a moderatly low level cost of living also.

[Tony1790]

Originally Posted by joee

you could check out alabama & kentucky i believe there taxes are somewhat lower, areas of texas has a moderatly low level cost of living also.

Thanks Joee,

No I'm pretty firm with East TN, my mom lives in Jonesborough, though I've only been there one time......very rural from what I saw....at least where she's at.

My sister lives in Weaverville, NC, I grew up in Asheville and Black Mt, NC.

I love the WNC and E TN landscape, it is very beautiful and peaceful, I just don't like wasting money. I don't blow it on drugs, nor cigarettes and not booze anymore ;-) And I sure don't like wasting it on government, who just takes, takes and takes some more.

I will be visiting TN soon to see if I really like the idea of moving there, but moving across the country to an unknown area is scary. The easiest thing would be to stay where I'm at, but in order to work or go to college, it's 4 to 5 hours a day of commuting and that ain't no fun.

Take care

Tony

[woodchuck]

Tony

New Hampshire is probably the most conservative State in the country. NH has neither a income nor sales tax. All towns are supported by local property taxes that are voted on by the townspeople-not politicians. But, this isn't a forum to discuss politics nor NH.

Maybe you should continue to do your research until you find an area that you can afford to live. The cost of living in Tennessee is 17% lower than the national average. You won't find many areas much lower than that. To describe property taxes in TN as 'sky high" is a mis-characterization, relatively speaking ie.

[Tony1790]

Originally Posted by woodchuck

Tony

New Hampshire is probably the most conservative State in the country. NH has neither a income nor sales tax. All towns are supported by local property taxes that are voted on by the townspeople-not politicians. But, this isn't a forum to discuss politics nor NH.

Maybe you should continue to do your research until you find an area that you can afford to live. The cost of living in Tennessee is 17% lower than the national average. You won't find many areas much lower than that. To describe property taxes in TN as 'sky high" is a mis-characterization, relatively speaking ie.

New Hampshire's state motto is something like "live free or die" isn't it? Great motto. You are correct, this isn't a forum for politics or NH.

I spent an hour replying to this post with examples and numbers, I deleted the post before I sent it. Doesn't matter what I say, we are both right! Compared to my experience's the property taxes are sky high, but not compared to NH and other places. It's a draw.

We both agree that TN has a lower cost of living, for many reasons.

As I posted previously, if I stay out of the cities and buy a modest home, I'll be ok for taxes, besides who wants to live in town anyway.

I hope to see you in TN soon, we can drink coffee and argue over politics and taxes or what have you.

Take care, God bless you on this sunday.

Tony

[shadowwalker]

It's not just property tax. The invent other tax gathering ways and then there is their special "permits" they have. And if that isn't enough they have jack up commidity taxes. Just temporary. But the end of temporary never comes does it?

[Tony1790]

Here's why I want to move to TN instead of NC where I grew up, it's due to the lower cost of living and the Lower Taxes in TN. Yep, that's right, me the complainer about high relative property tax am hereby singing praise for TN's lower overall tax structure.

Once I move to TN I'll be glad not to have all of NC's tax structure which consists of:

1. Property tax

2. Income tax

3. Sales tax

4. Personal property tax (boats, planes, traliers, jet ski's, etc)

5. Annual auto tax

6. Gas tax

TN

1. Property tax

2. Sales tax

3. Gas tax

Am I missing any TN taxes? Please let me know. I know TN has higher sales tax than NC, but overall taxes should be alot less than NC correct??

As a side note, I don't know why or how I got on such a banter about taxes, I guess it just struck a nerve somehow after I realized how much taxes I was paying and how little I was getting for it.

I'll try to refrain from posting about taxes anymore.....but this is a PRO TN Tax post, I'll be glad when I get there, though my payscale will be drastically lower while I hopefully get to go to ETSU and learn a marketable job skill....I don't think I have any right now??

Tony in WA

[J.R.]

Tony, don't even think about moving to Florida. You would choke.

Property tax on $350,000 home would run you about $700 per month.

[IDVague]

Originally Posted by Tony1790

Here's why I want to move to TN instead of NC where I grew up, it's due to the lower cost of living and the Lower Taxes in TN. Yep, that's right, me the complainer about high relative property tax am hereby singing praise for TN's lower overall tax structure.

Once I move to TN I'll be glad not to have all of NC's tax structure which consists of:

1. Property tax

2. Income tax

3. Sales tax

4. Personal property tax (boats, planes, traliers, jet ski's, etc)

5. Annual auto tax

6. Gas tax

TN

1. Property tax

2. Sales tax

3. Gas tax

Am I missing any TN taxes? Please let me know. I know TN has higher sales tax than NC, but overall taxes should be alot less than NC correct??

As a side note, I don't know why or how I got on such a banter about taxes, I guess it just struck a nerve somehow after I realized how much taxes I was paying and how little I was getting for it.

I'll try to refrain from posting about taxes anymore.....but this is a PRO TN Tax post, I'll be glad when I get there, though my payscale will be drastically lower while I hopefully get to go to ETSU and learn a marketable job skill....I don't think I have any right now??

Tony in WA

Some counties and municipalities in TN also have added taxes to the cost of license plates for your cars. The standard cost is $20-25, but the additional local taxes can run as high as $100 in some places. $30-50 in added taxes is common. These are often called "wheel taxes" and usually go toward schools or local projects. There are also inspection fees and emissions testing fees in some metro areas. I recently sold a house in TN to a couple from CA who were astounded at how CHEAP the TN property taxes are. But, in Alabama, for instance, a house is assessed at 10% rather than 25%, resulting in a huge savings. I guess it depends on your perspective, but I think TN taxes are PLENTY high.

[I LOVE NORTH CAROLINA]

Originally Posted by IDVague

Some counties and municipalities in TN also have added taxes to the cost of license plates for your cars. The standard cost is $20-25, but the additional local taxes can run as high as $100 in some places. $30-50 in added taxes is common. These are often called "wheel taxes" and usually go toward schools or local projects. There are also inspection fees and emissions testing fees in some metro areas. I recently sold a house in TN to a couple from CA who were astounded at how CHEAP the TN property taxes are. But, in Alabama, for instance, a house is assessed at 10% rather than 25%, resulting in a huge savings. I guess it depends on your perspective, but I think TN taxes are PLENTY high.

Do you think N.C. has higher taxes? which state has lower taxes?