Friday, January 5, 2018

Before you buy that car, check on your Sales Tax Rate

We all pay taxes, and with the new tax law that was just signed by the President, everybody is talking about them.  Income taxes, state income taxes, estate taxes, capital gains taxes, the new tax brackets, etc.  How will it all affect me?

But everyone ignores another tax that seriously impacts your buying power.  Have you considered comparing your sales taxes to what others in your geography pay?

Sales taxes are levied based on what your immediate community's needs are.  You pay sales taxes when you buy something (hence, the "sales" in sales taxes).  You don't notice it because it's just always there.  A very few dollars when you buy a couple gallons of paint for the living room don't bother you.

But you may visit the hardware store all the time.  It can dribble in over the course of the year, and you don't even think about it.  Sometimes, though, it really hits you.  Have you bought a car lately?  The sales tax on that one purchase isn't just whoop-out money.

So how much do you pay?  It depends on where exactly you live and shop.  If your hardware store is in Boulder, you'll pay Boulder sales taxes.  If you buy somewhere else, you pay the taxes required in that community.

For some larger purchases, the taxes are levied based on where you live.  Car dealerships, for instance, will ask you for your home address so that it can levy the taxes required in your community.  Living in Niwot or unincorporated Boulder County can be a wonderful benefit.

Take a look at the following chart.  Look under the Total Rate near the far right to see what you'll pay.

Now you know what I mean when I say living in Niwot or unincorporated Boulder County is wonderful.  Certainly, you'll never sell your existing home and move just to get a better sales tax rate, but you might appreciate more how the local communities manage their needs.

If you're looking to move at any time this year, call me.  I'd love to sit with you and answer all your questions to help you prepare.

Enjoy the day,

Mike Moger
WK Real Estate
303.541.1920 office
303.859.4467 mobile

No comments:

Post a Comment