Alabama is broken. And I live here. Part II: This is WHY

[trof]

OK, first of all I was born and raised here.
I grew up in Birmingham and lived there in the bad ol' days of segregation and Bull Connor and the dogs and fire hoses. And I hated all that.

But I loved my home and family and the geography and geology of Alabama.
From the Appalachians to the seashore.
When I was a kid we vacationed in the mountains at Mentone (look it up) and the blindingly white sands at Gulf Shores.

I left in my early 20s to pursue my career as a pilot for Trans World Airlines.
Jeez, does anybody here even remember them?

OK, fast forward.
Miz t. and I decided to retire here.
Always wanted to live on the water and now we do on Wolf Bay.
It's nice.

But once we settled in here, this is the FINANCIAL deal:
Alabama state income tax excludes taxes on 'qualified pensions' (I have one, thank you ALPA and AFL/CIO.) and social security. Since I only pay tax on what I have to take out of my IRA to make ends meet, most years I pay no state income tax.

When you reach age 65, and have lived in your house for 10 years, you can 'freeze' your real estate tax at that year's dollar amount FOREVER, no matter how much the assessed value may increase.
As long as you live in that house.
Until you die.
I pay about $1000 annually on a house that the county values at near $500,000.
And that's mainly for the land because we have 165' of frontage on the bay.
BTW, we bought the place for less than half that back in '93.


Anyway...we're pretty much locked in here financially.
We'd like to live closer to our daughter and her family in New England.
The taxes would kill us.


So...that's why I'll probably die here.
It's the $$$$$$$$$$$$$$.

[randys1]

1. Rent the house, move and live in an apt or condo...

I know I want to move and I will have to give up a nice house for an apt or cheap condo, but it is worth it to me as I hate where I live.

[trof]

2. There's STILL the tax problem.

I've researched all the New England states and they would tax my pension and S/S and no breaks on RE tax for newcomers.
Have you checked rental rates in the Boston area?
Unworkable.

We are locked in.


And I couldn't rent the house for the cost of the mortgage and insurance.

[flyingfysh]

3. check out western Massachusetts

There are some very cheap houses close to Erving, and houses near Amherst look affordable.

[randys1]

11. No SS tax here in CA

But I have similar problems, want to move out of the fog, it is literally killing me.

Depression is a killer

[ClarkeVII]

4. Wow

That's like a tax code right out of a 3rd world country

[dixiegrrrrl]

5. Can you help me understand something about those taxes, pls?

First of all, I too chose to live here because of the $$$$$, no other place offers as many amenities for so little $.

About real estate taxes....do you mean "property taxes"?????

If you do mean property taxes, you should fall under the Homestead law, and pay ZERO as a homeowner who is
blind
OR
disabled
OR
over 65.

[trof]

14. Only a portion is exempt.

[dixiegrrrrl]

16. ahhh..it's coming back to me now

We luckily do not exceed the value for total exemption.

Hearing what my friends in Cal. have to pay for taxes makes me feel grateful.

[dem in texas]

6. we are pretty much in the same boat in Texas

House is paid for, we live on our retirement income, social security and part-time work. Texas has no income tax and we get a homestead exemption and an over 65 tax cut on our property taxes, so our property taxes were about 950 last year on a house in a neighborhood where houses are selling at 175,000 and up. Housing stock in Texas is undervalued but rising fast.

Generally the cost of living is very low here. But, I am so fed up with the right wing politics in Texas that I'd love to move to a more liberal leaning state. I love Western New York - but I have been there and done that. Give me a warm winter any day, only a sweater needed, no heavy coats, a white Christmas is very overrated. I'll take no cold, no shoveling snow, no scraping frost off your car windows, very little snow or ice and when it happens it doesn't last long. Let your northern family come south to visit you.

[msongs]

7. hell is free but it's hell. heaven costs a few dollars but it's heaven. heaven or hell? u pick nt

[trof]

15. Much more than a 'few' dollars.

[steve2470]

8. I can relate to the $ conundrum

Even though I love Florida, I think I'd like to live in the SF Bay area. Problem is....money. I don't want to live 50 miles east of SF. IMHO, that defeats the purpose.

[Raine1967]

9. Got a link to part one?

This post has me thinking a lot…

Mostly, are you happy about the $$$$?

We moved to the DC area about 5 years ago for a job situation. We knew the taxes would be worse than other areas…

Do you feel trapped?

I really like the OP, it's very thought provoking.

[trof]

10. Thank you. Here ya go:

http://www.democraticunderground.com/10025314009

[Tuesday Afternoon]

13. self deleted because I see the question has been already asked and answered. on edit =

I wish you would put the link in this OP. Thanks.