Washington State Tax Question

[Christopher-Robyn]

To Washington State C-Brats:
Not a boating question, but I'm seriously considering moving from Southern California to Anacortes, Wa in the near future. I know there is no state income tax, but I'm wondering if interest and dividend earnings are taxed? Thanks!
Paul K

 

[Dreamer]

Paul, Not by the state. The only taxes you pay here are sales, personal property and property tax. If you make your big purchases in Oregon (no sales tax), it's a pretty cool deal!

 

[NORO LIM]

If you make your big purchases in Oregon . . . it's a pretty cool deal!

Only if you don't get caught. "Forgetting" to pay the in lieu tax has gotten some prominent people in hot water with the state DOR.

 

[Larry H]

A couple more taxes to consider:

Boats---In California, the local county assesses and collects the property tax. In Washington, the boat property (excise) tax is 1/2 of 1% of the value, paid annually when registering. If you import a used boat to WA, you declare the value and pay tax. Hint: Use the lowest published value (NADA) for a used boat. On a boat purchased in WA, the tax is based on the purchase price.

Cars and Trucks---Vehicle registration is cheaper than CA. Here in WA we pay $30 plus a weight fee per year, no matter how new or old a vehicle is.

 

[Pat Anderson]

Very true. If you buy something in Oregon and bring it into Washington, you are supposed to declare and pay a "use tax" equivalent to the sales tax. The State Patrol has (used to have? budget cuts and all?) a couple of investigators whose job it was to track down people with Oregon licensed RVs and so forth who paid neither sales tax nor "use tax." This is a pretty sketchy area, though, since nobody checks on unregistered or unlicensed out of state purchases. New uniform sales tax rules among the states are in the process of changing that however - you will see sales tax popping up on more and more internet purchases from out of state, which those states then remit to Washington. The only certainties, death and taxes...

Only if you don't get caught. "Forgetting" to pay the in lieu tax has gotten some prominent people in hot water with the state DOR.

 

[1TUBERIDER]

I did a Wa resident tax return (federal) and was surprised to see the sales tax rate is applied to real estate transactions at the sellers expense. So a $400000 sale had a tax of around $32000. You will need lots of appreciation to recover the tax.

Calif sales tax has not been applied to real estate transactions. Calif also would like to apply sales tax to your non taxed transactions (out of state or internet) and has a line on your Calif tax return to remit tax on those purchases. Calif is also tasking the State Board of Equalization to audit folks for out of state purchases.

Washington does not have a state income tax filing. So your earnings (including interest and dividends) are not subject to state income tax for Wa residents. You will still need to file Federal returns if income requires it.

Oregon may not have a sales tax but their state income taxes and real estate taxes are higher than most states and every election they have a measure for adding a sales tax. Most Oregonians won't let it pass but the numbers voting for it keeps growing.

I think Texas has one of the more appealing tax structures and is very eager for business to locate there.

Before you commit yourself to the move I would carefully look at the normal weather patterns and see if it is tolerable. Many spirits from southern transplants drown in the rain. The rain here (coastal northern Calif) usually has southern folks leaving the area for the rainy season or leaving for good. Then you would have to pay the sales tax on property sold if you were in Wa.

 

[localboy]

...you will see sales tax popping up on more and more internet purchases from out of state, which those states then remit to Washington.

[/quote]

Imagine that. Any excuse to reach into MY pocket.

And as far as the Wa. State Income Tax goes, there isn't one YET. Key word: YET. With the current state spending, combined w/ the $3 BILLION plus defecit , it's only a matter of time before them Dems in Oly change the current law and impose one. Trust me...it's coming.

 

[NORO LIM]

. . . it's only a matter of time before them Dems in Oly change the current law and impose one. Trust me...it's coming.

Being neither a Dem or a Rep, I have no partisan axe to grind on this issue. I do think it's worth noting, however, that we had an income tax law on the books once in Washington. Passed by popular initiative. Struck down by an activist state supreme court.

 

[Doryman]

Struck down by an activist state supreme court.

Do you remember the grounds for the decision?

Warren

 

[NORO LIM]

Struck down by an activist state supreme court.

Do you remember the grounds for the decision?

Warren

Culliton v. Chase. 1933. The court concluded that "income" is "property" for purposes of the state constitution's uniformity provision. So, a graduated net income tax is unconstitutional. Maybe a flat rate income tax is OK.

 

[Jazzmanic]

Imagine that. Any excuse to reach into MY pocket.

And as far as the Wa. State Income Tax goes, there isn't one YET. Key word: YET. With the current state spending, combined w/ the $3 BILLION plus defecit , it's only a matter of time before them Dems in Oly change the current law and impose one. Trust me...it's coming.

Mark,

You haven't been in the state long enough to know that "State Income Tax" is a dirty word in Washington State. There have been democrat governors in Olympia since the 70's and no income tax yet, despite the many recessions since then.

On another note, I really hate to waste my 1000th post on this but I'm getting tired of your endless snide remarks against democrats and liberals in general. This site is not one-sided and I would appreciate it if you would contain your far-right politics to yourself. That is the reason I dropped out of this site a year ago and will probably be the reason I drop out again, when I do. So please, keep it clean.

Peter

 

[localboy]

On another note, I really hate to waste my 1000th post on this but I'm getting tired of your endless snide remarks against democrats and liberals in general. This site is not one-sided and I would appreciate it if you would contain your far-right politics to yourself. That is the reason I dropped out of this site a year ago and will probably be the reason I drop out again, when I do. So please, keep it clean.

Peter

What remark was "snide"? :| :? How is it "endless"? :roll: Do you know me or my political beliefs?...or are you making an assumption based on YOUR beliefs? We all know what "assume" stands for.

Excuse me, but it's a FACT that this is, in essence, a "one party state" and has been for decades. Period. Seems some people always get upset when facts go against their "political beliefs" here. My posting was DIRECTLY related to the original question...or am I not allowed to voice my opinion/facts as regards the original post 'cause they may go against your's & others here? :? I live in this state and have for a decade. Period.

This is not a political debate and I didn't make it so. I merely posted a) a fact about the party in power b) my opinon of the tax status & future of the state. based on that fact. Period. Seems others did the same, but they weren't accused of being "snide" or "endless". :roll:

Have a good day.

 

[Jazzmanic]

Whatever you say Mark. Happy Holidays!!!

Peter

 

[localboy]

Merry Christmas to you and yours too! 8)

 

[starcrafttom]

Back to the taxes.... The state of wa. Only charges 1.78% excise tax when you sell your home. So $400,000 home sold will be $7120. Not 30k. Now if you own a home and do not live in it, a rental, or only live there for less than 3 years I think and sell it you have to pay capital gains, but that’s the feds not the state. Oh and you have to make more then 200k unless they changed it again.

The problem I see with Washington over California is property tax, it keeps going up. California locks your property tax until you sell the house and the tax goes up to the new owner. Washington tax goes up every year and depending on where you live you could get taxed off your land. Many people bought homes for less than 80k in Seattle that are now forced to pay 20k a year in taxes because the house is worth 1.2K or more. This happened to a friend’s parents. They bought in south Kenmore on the lake 30 years ago. They paid 84k for the house, now their taxes are 60k a year. They had to sell.
This type of thing happened in the bay area years ago and California came up with Prop13??? I think I go thte number right. Now your taxes are set until you sell. unles the changed it since I escaped.. left.. ran for my life and wallet..

 

[Anita Marie]

Washington tax goes up every year and depending on where you live you could get taxed off your land.

I am not in total agreement with this statement. Robbin and I own two properties in Wahington State and both properties taxes went down in 2009. I am not sure that is the case in California.

Fred

 

[Christopher-Robyn]

To All:
Thanks very much for all the good info! It will be very helpful to us in planning our move. Sorry, I didn't mean to start a C-Brat fire storm! We'll be heading up after the holidays to experience the cold/wet part of the Anacortes equation.
Paul K

 

[Don and Brenda]

Tom is mostly correct for Calif. Yes it was prop 13 that changed the property tax laws. However now depending upon where you live the cities have inacted what are called "Mello-Roos" which is a way to get around the word tax and now it is use fees for schools, fire stations ect. They were originally suppose to go away after X number of years, however you know how that goes, once the gov't get their hands on it, it never goes away! Not all cities have this, some are up front fees when you buy the house and others are added to your property tax bill.
Many of the property tax bills went down with the housing market, however the county was nice enough to send me a letter and say ours was under value to start with, so no change for me.

Our Washington house stayed about the same, due to all the bond measures that get tacked on. Just another way around taxes. No matter what state you are in they just find other taxes or words for taxes to increase.

 

[starcrafttom]

Well Fred is right for this year. What I should have stated is that your tax is based on value of your home and is in motion every year. As values go up, and in the long run they always have, you tax assessment will go up. This year some of them have gone down, depending on which county you live in. If you have not gotten a reduction you should contact your county assessor and have them re-asses it. Mine has gone down but not to the level it was when I bought it. Prop 13 in California does not allow this at a state level. Seems some cities have found a way around that.

and according to the governor today taxes are going up and services will be cut. Her words not mine
.

 

[K7MXE]

I think after living here all my life that, Washington state would be one to avoid if one wanted to avoid taxes, fees and permits. Moneys have be generated in on form or other to operate the state. Taxes are easy and the big income is from revenue that runs close to ten percent for sales tax or the fines if you operate wrongly on the highways. On the positive side the state parks did drop the parking fee for day use and there are still lots of free launch sites. I think the biggest bang for the buck is Southeast Washington state on the Snake river but today one would need a heater in their boat. Interesting subject. Bob Heselberg Eatonville Wa