Are you thinking about moving due to the tax rates in your area? Before you pack up your bags and sell your house read this to know if the big move would really be worth it.
Some states and cities have higher tax rates than others and its possible that you are taking them for granted. Did you know that property and state taxes are what fund the public school systems in your area. They also fund things such as; city parks, bike paths, and public transportation.
It may seem like a good decision to move to a city with lower tax rates when you look at how much you pay in property taxes each year. Something to remember is that tax rates are only a small fraction of the overall picture of a city. You should take into account the things you are quite possibly taking for granted that are funded by your property taxes.
The public schools in your school district are funded by your property tax along with all your neighbors’ property taxes. Areas with higher property taxes tend to have the best public schools with the best teachers. Is moving to a new town with lower property taxes worth taking your children out of the best public schools available? If you don’t have any children or if they are out of school than having the best school available to you probably isn’t high on your priority list. But if you enjoy taking walks at you local park or using the bike trails you should know that those are all funded and maintained with money from local property taxes.
Another important thing to know before you consider moving is that public transportation is funded by taxes. Many people rely on public transportation to get to and from work or to simply run their errands. Living in an area with low property taxes typically means there isn’t very good public transportation, if there is any at all. If there is poor public transportation that will make for a lot more cars on the road which leads to more traffic and possible accidents. It also means that there will be more wear and tear on the roads. Local property taxes are what fund the maintenance on city roads. If there is little to no property taxes being paid by residents that gives the city little to no money for schools, parks, public transportation, and road maintenance.
Have you ever noticed that large successful companies are typically located in nice areas with good school districts? It is not a coincidence it is a strategic plan. Successful companies want to be located in an area that is appealing to its employees. A lot of a big company’s employees have families with children. Parents will always want their children to attend the best schools available, so when a company is relocating it will actually have employees go look at a possible new location’s school district. Successful companies will go so far as to look at the high school and college graduation rates and take them into consideration.
If you are still set on moving to an area with lower property taxes you should really consider visiting the area before making the big move. Go visit the town and look at the school systems that your children would be attending, the local parks your children and yourself would be enjoying, and how well the town is maintained. Make sure to look into the current tax rates there at the time of your visit. Double check your tax rate sources and do your research on the town to make sure it’s exactly what you want. You wouldn’t want to make a huge move to a city with lower tax rates to find out that they weren’t actually lower it was just that some residents were grandfathered in at a lower tax rate. Then once you have all your facts gathered you will be able to make an educated decision on whether picking up your whole life and moving to a city with lower tax rates is worth it or not.