"Relocation Tax"?? - People who moved from MD to PA

drking2 · Jan 30, 2014

never heard of it, but this state would tax my poop if they could weigh it

EL1227 · Jan 30, 2014

Relocation Tax ???

Yet another thing to pry from 'my cold dead hands' ...

molṑn labé

PJDiesel · Jan 30, 2014

Never heard of it.

There ARE some new(er) taxes, been around maybe 4 years now. One is for out of state owners, (home in MD is not their primary residence), second portion of that same tax is for out of state LLC's.
http://taxes.marylandtaxes.com/Busi...olding_for_Nonresident_Sale_of_Property.shtml

Now. Lets not confuse this with regular old capital gains. If you have not made a property your primary residence for at least two years, you are subject to capital gains on the net.

PJDiesel · Jan 30, 2014

Ef Me.

About 60 seconds of browsing on that site is enough to raise my blood pressure.

There's a "Boxing" tax? http://taxes.marylandtaxes.com/Business_Taxes/Business_Tax_Types/Boxing_and_Wrestling_Tax/

Brychan · Jan 30, 2014

This is MD you breathe they tax you, you stop breathing they tax your estate.

Multifaceted · Jan 30, 2014

Not that I know of, but if you move to PA you'll be paying an Occupational Tax (1% of your income) to the Commonwealth.

Runamuck · Jan 30, 2014

drking2 said:
never heard of it, but this state would tax my poop if they could weigh it

Flush Tax, so they are taxing your poop

drking2 · Jan 30, 2014

Good point

Sent from my SCH-I605 using Tapatalk

Deerminator · Jan 30, 2014

I moved from MD to PA this past year and cannot recall any such tax. Just did my income tax returns for the year and filed as part-year residents of each state.
How does MD know you are not buying another house within the state? You'd be hearing a lot more about it if everyone selling their MD home was charged this tax.

psusra112 · Jan 30, 2014

Multifaceted said:
Not that I know of, but if you move to PA you'll be paying an Occupational Tax (1% of your income) to the Commonwealth.

Still seems cheaper than MD tax to me.

Ab_Normal · Jan 30, 2014

drking2 said:
never heard of it, but this state would tax my poop if they could weigh it

Uh...flush tax. :sad20:

OP - look for user montoya. He is a real estate agent and can probably give you some insight.

Ab_Normal · Jan 30, 2014

Multifaceted said:
Not that I know of, but if you move to PA you'll be paying an Occupational Tax (1% of your income) to the Commonwealth.

They have a lot of little taxes. Check with some of the locals on how to minimize them. One example I heard many years ago was instead of putting something like factory manager you would put factory worker so it changed the rate or something like that.

Ab_Normal · Jan 30, 2014

psusra112 said:
Still seems cheaper than MD tax to me.

Pa taxes can be cheaper BUT a lot of the places right across the line are pretty high tax wise because they have had an explosion in growth because of houses being a little cheaper because of the higher taxes.

Multifaceted · Jan 30, 2014

psusra112 said:
Still seems cheaper than MD tax to me.

I think it depends where one is located, especially for property owners. There are county taxes, then borough taxes, and if you're in a township — township taxes, and the closer you are to the school, the more the school tax is. I was looking a lot of property this time last year, and for our price range we probably would've paid close to $3K in taxes combined, which is about 30% more than what I'm paying to own property in Baltimore. However, property value is more affordable, the cost of living is lower than most of MD, so to me it evens out. A rather small price for freedom, if any more at all.

Ab_Normal said:
They have a lot of little taxes. Check with some of the locals on how to minimize them. One example I heard many years ago was instead of putting something like factory manager you would put factory worker so it changed the rate or something like that.

You're right, there's a lot of variables, I've been looking into this for a few years now. Overall, it is not a deterrent to me, but rather a situation to unravel to best suit our needs.

psusra112 · Jan 30, 2014

Multifaceted said:
I think it depends where one is located, especially for property owners. There are county taxes, then borough taxes, and if you're in a township — township taxes, and the closer you are to the school, the more the school tax is. I was looking a lot of property this time last year, and for our price range we probably would've paid close to $3K in taxes combined, which is about 30% more than what I'm paying to own property in Baltimore. However, property value is more affordable, the cost of living is lower than most of MD, so to me it evens out. A rather small price for freedom, if any more at all.

You're right, there's a lot of variables, I've been looking into this for a few years now. Overall, it is not a deterrent to me, but rather a situation to unravel to best suit our needs.

I've done the living in PA thing before.

My state tax rate was 3.07%, my local tax being 1.65%.

In Maryland, my marginal tax rate is 4.75% and my local tax rate is 2.56% in Anne Arundel Co.

Kept quite a few more Benjamin's in my pocket in PA, especially with astronomically lower auto insurance. Note that the tax brackets I pulled were for the same salary range in each state, so there's no disparity between brackets. Even with the 1% Occupation tax, it's still way cheaper than living in Maryland. I should also note that I'm not a property owner, so I speak to income tax alone.

Note also that PA doesn't tax clothing purchased in the state, so long as it isn't formal evening wear.

Multifaceted · Jan 30, 2014

psusra112 said:
I've done the living in PA thing before.

My state tax rate was 3.07%, my local tax being 1.65%.

In Maryland, my marginal tax rate is 4.75% and my local tax rate is 2.56% in Anne Arundel Co.

Kept quite a few more Benjamin's in my pocket in PA, especially with astronomically lower auto insurance. Note that the tax brackets I pulled were for the same salary range in each state, so there's no disparity between brackets. Even with the 1% Occupation tax, it's still way cheaper than living in Maryland. I should also note that I'm not a property owner, so I speak to income tax alone.

Note also that PA doesn't tax clothing purchased in the state, so long as it isn't formal evening wear.

Very interesting, and thanks for sharing! A lot of it is speculation for me right now, but York and Adams Counties are in my sights for certain. Did you own property while in PA?

El_flasko · Jan 30, 2014

squirrels said:
So I sold my house in White Marsh in 2013 and am renting (sort of) a house in Cambridge right now. My understanding is that since it was my primary residence, anything under $250k that I make from the sale (made less than 100K) is non-taxable.

So that money is being used as a DP/closing for a new house across the PA line.

Someone I know at work, though, said that they were also planning to move to PA, but MD tried to hit them with a "relocation tax". I can't find any Google reference to such a tax.

Does such a thing exist? Or is it just something that someone was CALLING a "relocation tax" because they got a lot of equity out of selling their house, enough that it was taxable because they didn't re-buy in MD?

I've been doing mortgages in PA for a long time and I've never heard of a client moving from MD to PA and being charged a relocation tax. Unless it's called something else it would be news to me. Pa does have a lot of advantages tax wise but be careful to note the "school" taxes you pay depending on where in pa you reside. They can add up quickly and they are typically included in your monthly escrows (unless you pay them on your own). Let me know if I can be of any assistance if you want a second opinion on mortgage financing (unless you're buying outright of course).

Good luck with the move and Tim Montoya would indeed be a good resource for you here on mds.

Ryan

Jason21237 · Jan 30, 2014

I just bought a house in PA and as far I know there wasn't a relocation tax. Im sure Md would have notified me. Don't get too caught up on the school tax. Look at the property tax total. The property taxes consist of school tax,county tax and local tax. Add them up and that's total property tax.My taxes here in Pa are cheaper than my brothers taxes in Essex. I have a bigger house with more property. My auto insurance dropped to almost 1/4 of what it was in md.

CrazySanMan · Jan 30, 2014

Relocation tax? Never heard of it but keep quiet, the GA is in session and we don't want to give them any ideas!

"Relocation Tax"?? - People who moved from MD to PA

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