What state is the cheapest to call home?

[amy5708]

Maybe this belongs in fulltiming?

Trying to figure out where to call home when we leave next year.

I think we may hold off on buying a new RV here because we don't want to give O'Malley the $7 grand in taxes to register a new rig.

We want low employment and registration taxes. Not worried about sales tax, since we won't be living there too much.

Thanks,
Amy

[amy5708]

Maybe this belongs in fulltiming?

Trying to figure out where to call home when we leave next year.

I think we may hold off on buying a new RV here because we don't want to give O'Malley the $7 grand in taxes to register a new rig.

We want low employment and registration taxes. Not worried about sales tax, since we won't be living there too much.

Thanks,
Amy

[Route 66]

IMHO, in order from top to bottom the big 3 fulltimer friendly states are, South Dakota, Texas, and Florida.

The vast majority of us fulltimers "reside" in of those 3 states.

However, everyone's individual circumstances will influence their decision.

Insurance rates, both medical and auto/RV can vary wildly from one person to the next, and can be a deciding factor.

[Dreamweaver]

Tennessee has no income tax,low vehicle registration and if you have a travel trailer or a 5er for $90 you can get a semi tag that is good for as long as you own it.
John

[paz]

Although Dirk's reply may not be as definitive as you would like, it is right on. It all depends on your individual circumstances.

We always thought we would become Texans because we are Escapees and they have an excellent mail forwarding service. However, when we checked out vehicle insurance with full-timers' coverage, we found South Dakota would save us over $800 a year. However, we have heard that Texas is better for those who are not yet eligible for Medicare and must buy their own medical insurance.

You say you are not concerned about sales tax, but if you are going to put off your RV purchase, you may want to check out sales taxes. Unless you are considering setting up a Montana LLC to use to purchase your RV, the sales tax will be substantial. SD only charges 3% excise tax on vehicles, so the tax will be significantly less than most other states.

[amy5708]

Thanks for the great information!

You know, I must not be thinking right, because I keep thinking "motor vehicle registration fees" but I really need to be concerned with sales taxes for the RV purchase.

We will probably have catastrophic health ins converage, since we can cover the high deductible and are in really good health.

Thanks, Amy

[RVrs R US]

Hi Amy!

As full timers, we were faced with that same question. We were both born in New York State but lived in Delaware from 1992 to 1997 when I ran the Delaware division for British Petroleum.

We were very familiar with its tax structure (no sales tax and low state income taxes on retirees) so when we decided to go full time, we selected Delaware as our domicile state and set up a Mail Boxes, etc as our mail forwarder and legal address. And as mentioned above, the sales tax issue can be HUGE!

Another reason we selected Delaware was its proximity to New York State when we visit our families (not unlike your Maryland address) for such issues as registration of new vehicles and drivers license renewals. Delaware does allow dealers in the state where you are full timing to do inspections on your vehicles for registration renewals so you don't have to haul your equipment back every two years.

Lots of things to think about (and anticipate).

Best of luck to you....

Tania and Dave

[amy5708]

Thanks for the replies.

So can you give me a specific % of price for registration/ sales tax?

Maryland is 6% with $180/year renewal on registration

[RVrs R US]

I can tell you Delaware's numbers Amy.

0% Sales tax (although they do have a one time 3.25% registration fee on new vehicle purchases)

Our RV/Tow Vehicle renewal costs per year:

F-450 annual renewal registration fee - $53.60

Travel Supreme Fifth Wheel annual renewal registration fee - $98.00

Our truck and fiver total close to $130,000. A 6% sales tax on that amount totals $7800. A 3.25% new vehicle registration fee totals $4225 amounting to a $3600 savings.

Dave

[amy5708]

Thanks, Dave; this is the info I was hoping for. When I did an online search for sales tax/ state vehicle license fees, all I got were links to each states dept of taxation. Do you know what a bureaucratic mess those sites are to navigate?!?

So Delaware is much cheaper than MD by half. That's good to know. When we leave, I'll set up a forwarding acct/ address at a Mailboxes etc or some other place. But I'll cross that bridge when we get that far.

[Doug Hasert]

Try this site, see if is helpful, http://money.cnn.com/galleries/2007/...ndliest/8.html

It is a CNN Money site. Hope it helps
also this may help, http://www.retirementliving.com/RLtaxes.html
Doug in AZ,full timer for 6 years

[rv rick]

We are South Dakotans and fulltime. The sales tax on vehicles is 3% of the trade difference. Our coach registration was about $100 as I recall (based on weight). Insurance for autos and motorhomes seems quite reasonable.

[amy5708]

Thanks Rick,

South Dakota is the cheapest I've heard of so far. Looks like we might be South Dakotans!

Amy

[RVrs R US]

This link might be of help to you as it shows the comparison of all states (highest to lowest) when State and Local Tax Burdens Are Compared to Other U.S. States, 1970-2007

Dave