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winslow59 01-13-2004 08:10 AM

Taxes - Residence - Registration
 
Now retired - modest income - van being converted for travel & camping - used sailboat to be purchased when a suitable example of a particular model is found - intend to travel and sail interesting places until it''s no longer fun or we want to do something else.

We currently live in WA - no state income tax, but a sales tax (7.7-8.1% or there abouts). Cross the boarder and OR has no sales tax, but does have a rather regressive income tax.

Is/are there states that have niether a sales nor an income tax?

If not, which states have the most ''advantageous'' combination?

With no property or ties, and going mobile, I''m assuming we can choose any state as our residence - set up to handle mail and get drivers licenses. We would then register the van and boat in that new state. We aren''t trying to cheat the system, just make it work for us and not spend more than we have to.

WHOOSH 01-13-2004 09:16 PM

Taxes - Residence - Registration
 
Goner, a couple of thoughts for you:

Re: location, many folks in your circumstances now look to the eastern Gulf Coast for the best blend of low or no income tax, low(er) sales tax, and low cost of living. So that would suggest MS, AL and FL. "LA" (Lower Alabama) is one popular area that some feel has not yet been discovered, and SW FL is another popular destination. Don''t overlook related taxes as e.g. if you have savings outside 401K or IRA accounts, you may be eligible for an annual ''investment'' tax above certain investment amounts. Your own preferences, annual income and your planned expenditures will determine what the best balance of taxes will be for you...but I think the reality of your choice will be dependent in large measure by quality of life issues, as well. After all, you''re now at a point in your life where ''the point'' is to enjoy yourself. Being somewhere that''s unappealing but cheap doesn''t seem to fit that notion well.

Re: residence, don''t lose sight of the fact that it''s very easy to become residents in a new state; you''ll always be welcomed in because you represent a new tax base. The key is to be fully unplugged from residence in the old state, who will be reluctant to lose you. Were I you, I''d call your local WA county tax authority and describe your plans to them in order to confirm that you are changing all the things you need to. The basics will be where you are registered to vote, where your property is licensed, registered and/or taxed, and the new state''s law will inevitably require you to have a new driver''s license.

Jack

obiec 01-14-2004 04:18 AM

Taxes - Residence - Registration
 
One more thing to consider. If you plan on using your boat in Washington Water, Say the Puget sound, for more that 60 days in any year. If you are an out of stator, then Washington will hit you with what they call a users fee. It is around 9 % of what they say your boat is worth. This gits real expensive.

winslow59 01-14-2004 07:52 AM

Taxes - Residence - Registration
 
Thanks for taking time to offer ideas and information.

There''s a lot to consider when making such a big shift in life...

Our immediate concern is the sales taxes that will be assessed on the van (when the conversion is complete) and the boat & trailer. We''ve budgeted ~US$65K for those three things and the tax in WA on that amount would be at least 25% of our annual living budget - an awfully big bite just when we''re trying to transition to a new way of living.

hamiam 01-14-2004 09:37 AM

Taxes - Residence - Registration
 
There are no taxes on boats in RI and I believe there is neither sales nor income tax in NH.


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