Where Are You Going To Live When You Retire? [Think: Taxation.]

My mother blissfully moved about 1300 miles away to sunny Florida – and she loves it. Gorgeous beaches, blue sky and sunshine, a ranch-style home and her property taxes are lower than what she would have been paying in Pennsylvania. What’s not to like, besides tornadoes, hurricanes, sinkholes and an abundance of large bugs with an occasional alligator that has walked along some nearby streets? In any event, she’s still very happy where she lives.

My thoughts are that I don’t want to move to Florida unless I can build a hurricane safe home and develop a more adventuresome attitude toward food – some of the bugs in Florida I have seen were large enough to be the entrée for dinner for two.

There’s just so much to consider with such a bold decision. Besides the usual considerations of quality available health care, desirable amenities nearby for enjoyment of retirement years, and weather conditions, the real cost of living on a retirement budget is a very big consideration.

Before you retire and decide where to move, it is also wise to learn everything about the taxing structures in effect or being proposed -- and how it will personally affect you. In many places of our nation, the taxing climates are changing.

Here in Pennsylvania a ballot question last Tuesday (depending on the school district that you live in) (i) to collect a personal income tax , ( this includes unearned income), or (ii) to significantly raise the school district percentage on earned income – either of these, if voted on favorably were supposed to lower only the school district property taxes.

Regardless in which school district you currently reside, if either of the above tax increases occur, it will have an adverse effect on many people, especially seniors who will be taxed on their personal income, many of whom do not own their own homes. I personally do not believe that most renters will benefit from a property tax reduction with an immediate comparative reduction in rent, and possibly will not see any real benefit at all in proportion to the extra taxes being paid.

This school property tax measure was basically voted down in most of Pennsylvania. The news at the Post Gazette online indicated that it was Chuck Ardo, spokesman for the Governor who said that the defeat of this referendum “wasn’t anything other than confusion” by voters. (See link to story below).

Honestly, I wasn’t confused at all, and I truly don’t know anyone who was. I can easily recognize a blatant attempt to raise my taxes that likely won’t actually result in benefit to me. I was personally insulted to read the purported statement on my apparent confusion that does not exist.

Pennsylvanians are also facing a possible 1% increase in sales tax, and for those living in Allegheny County, the sales tax will be 8%. Well, that’s understandable enough, isn’t it? No confusion there, Pennsylvanians will be paying more taxes and we will have less money. This too, has been loosely tied to property tax relief. Not so long ago, bringing gambling into Pennsylvania was supposed to have been what would help us with property tax relief.

There’s really no reason to take money out of the left hand so a small portion of it can be run through channels and then rerouted back into the right hand. There’s also no guarantee that property taxes won’t continue to rise.

When the day comes that I retire, there’s going to be a lot to consider about where to live.

http://postgazette.com/pg/07137/786716-178.stm