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

The #1 community for Gun Owners of the Northeast

Member Benefits:

  • No ad networks!
  • Discuss all aspects of firearm ownership
  • Discuss anti-gun legislation
  • Buy, sell, and trade in the classified section
  • Chat with Local gun shops, ranges, trainers & other businesses
  • Discover free outdoor shooting areas
  • View up to date on firearm-related events
  • Share photos & video with other members
  • ...and so much more!
  • alucard0822

    For great Justice
    Oct 29, 2007
    17,643
    PA
    Moved up here in 08, never regretted it for a minute. No relocation tax, but beware of turning plates in, and changing insurance over. Pretty much everyone up here from MD will get the "insurance violation fine" letter. I documented everything, paid to have 2 days of insurance overlap, turned in plates, got receipt in MD, got PA plates, dotted every I, crossed every T. Still got a letter for each of my 3 vehicles, MVA's own receipts and records didn't matter. Of course after they "suspended" my non existant MD license and had $3,000 in fines. Took a year to fix it, USAA going to court for me, and now all is well, but not without a huge headache
     

    psusra112

    Active Member
    Jun 8, 2011
    447
    lol
    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?

    No, I did not. I was a student at Penn State and renting up there, whilst working for a Maryland based IT firm. Moved down here 3 years ago, getting married in a few months and then plan to buy a house somewhere in AACO or Carroll county after the wedding, as we're just about where we want to be for house savings.

    I was living in Centre County, specifically in Bellefonte Borough. Obviously York and Adams co. are going to have different locality taxes based on the town you live in, so ymmv.
     

    kenpo333

    Ultimate Member
    Industry Partner
    MDS Supporter
    Mar 18, 2012
    3,322
    Salisbury Maryland
    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 think the tax you might be talking about is the capitol gains tax. You are exempt from this I believe if the property is your primary residence and you've lived in it for 2 out of the last five years. Both you and your wife get a $250,000 profit exemption each. Talk to an accountant. I've been out of real estate for a few years now.
     

    reddobie0

    Ultimate Member
    Jan 12, 2014
    1,106
    Lost Somewhere
    Wish I could move back but wife works in DC and grew up in Annapolis. Grew up in PA(31 yrs) and moved to MD in 2001. Taxes in MD were higher on income but not on property taxes. I still own 4 properties up there in York area and taxes are higher, but you get more house for your money though. I don't miss the yearly vehicle inspections. For example my one house assessed at $145K for tax value and with school and real estate tax I pay $2400 a year in PA in Dallastown school district. I would love to move up there again but have about 7 more years to retire and then force wife. :party29:
     

    Multifaceted

    Jerk of all Trades
    Jan 10, 2013
    3,209
    Adams County, PA
    Moved up here in 08, never regretted it for a minute. No relocation tax, but beware of turning plates in, and changing insurance over. Pretty much everyone up here from MD will get the "insurance violation fine" letter. I documented everything, paid to have 2 days of insurance overlap, turned in plates, got receipt in MD, got PA plates, dotted every I, crossed every T. Still got a letter for each of my 3 vehicles, MVA's own receipts and records didn't matter. Of course after they "suspended" my non existant MD license and had $3,000 in fines. Took a year to fix it, USAA going to court for me, and now all is well, but not without a huge headache

    Noted.

    Good to know that USAA went to bat for you, I also am a member and will be keeping this in mind for the future.
     

    JWL68th

    Member
    Jan 3, 2013
    40
    Brunswick
    NJ does something like this. Google "NJ exit tax". Evidently it was a way to collect capital gains taxes on non-residents who sold second homes or something like that.
     

    XCheckR

    Ultimate Member
    MDS Supporter
    Mar 20, 2013
    4,198
    HdG
    Yes there most definitely is a relocation tax and its payable to me :) that D I B E..... :)

    All kidding aside...never heard of it. Yes there are some small taxes and you have to pay school tax even if you dont have kids. And as mentioned, these taxes vary by city/county.
     

    alucard0822

    For great Justice
    Oct 29, 2007
    17,643
    PA
    Noted.

    Good to know that USAA went to bat for you, I also am a member and will be keeping this in mind for the future.

    USAA is awesome, and they really helped out, said it happens all the time with MD. Basically moved on 6-6, MD insurance was paid up and effective till 6-8, PA insurance started 6-6, drove on MD plates and got PA license, tags and registration on 6-6, turned in 3 sets of MD tags on 6-7 proven by the MVA's receipt. around the holidays got the first letter from MD showing my registration wasn't processed for a week after turning them in and getting a receipt, 6-12, and 4 days of alleged no insurance. Called, showed the receipt, they said they mean nothing, they "only give reciepts to make people feel better" (exact words). I also had the refund check for the remaining time on my MD tags with a 6-7 return date. There is an official form USAA had to send showing my insurance in compliance, they sent it 3 times, every time I got a letter. The last letter was almost a year later, $9,000 in fines going to a collection agency, USAA filed a lawsuit through their legal department, and haven't heard anything since. My wife got a letter, but they gave up after her insurance faxed the form once, neighbors had to fax theirs in twice, a and 4 out of 5 co-workers that made the jump to PA got the insurance scam letter from MVA. Needless to say, if I ever get stuck moving back to MD, my registration will say Pedro de il legalle;)
     

    Numidian

    Banned
    BANNED!!!
    Jul 25, 2007
    5,337
    Shrewsbury, PA
    Moved up here in 08, never regretted it for a minute. No relocation tax, but beware of turning plates in, and changing insurance over. Pretty much everyone up here from MD will get the "insurance violation fine" letter. I documented everything, paid to have 2 days of insurance overlap, turned in plates, got receipt in MD, got PA plates, dotted every I, crossed every T. Still got a letter for each of my 3 vehicles, MVA's own receipts and records didn't matter. Of course after they "suspended" my non existant MD license and had $3,000 in fines. Took a year to fix it, USAA going to court for me, and now all is well, but not without a huge headache

    I lived up here for 3 months before swapping tags, but I'd already swapped insurance... It just took mailing my insurance binder to the MVA and it all got cleared up.
     

    Multifaceted

    Jerk of all Trades
    Jan 10, 2013
    3,209
    Adams County, PA
    USAA is awesome, and they really helped out, said it happens all the time with MD. Basically moved on 6-6, MD insurance was paid up and effective till 6-8, PA insurance started 6-6, drove on MD plates and got PA license, tags and registration on 6-6, turned in 3 sets of MD tags on 6-7 proven by the MVA's receipt. around the holidays got the first letter from MD showing my registration wasn't processed for a week after turning them in and getting a receipt, 6-12, and 4 days of alleged no insurance. Called, showed the receipt, they said they mean nothing, they "only give reciepts to make people feel better" (exact words). I also had the refund check for the remaining time on my MD tags with a 6-7 return date. There is an official form USAA had to send showing my insurance in compliance, they sent it 3 times, every time I got a letter. The last letter was almost a year later, $9,000 in fines going to a collection agency, USAA filed a lawsuit through their legal department, and haven't heard anything since. My wife got a letter, but they gave up after her insurance faxed the form once, neighbors had to fax theirs in twice, a and 4 out of 5 co-workers that made the jump to PA got the insurance scam letter from MVA. Needless to say, if I ever get stuck moving back to MD, my registration will say Pedro de il legalle;)

    I've heard similarities stores before from others who've moved away (my mother for example) — but yours is by far the most ridiculous. Glad it worked out for you in the end. I've also had my share of getting bent over by the the MVA for reasons that were their fault, and not mine. And yes, USAA is superb — been a member going on almost 14 years now.
     

    sxs

    Senior Member
    MDS Supporter
    Nov 20, 2009
    3,377
    Anne Arundel County, MD
    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.
    I've been l.ooking at retiring somewhere in proximity to MD but outside the state where taxes and gun laws are more favorable. One of my problems with PA is the freaking school tax. A couple areas I looked at had a school tax like 6k for a 200k home. With homestead credits in AA County (and garbage collect, rain tax etc that are collected as part of property tax) my estimated tax for next year is 2600 on a 300k+ home. It's caused me to look elsewhere.
     

    2SAM22

    Moderator Emeritus
    Apr 4, 2007
    7,178
    AFAIK it doesn't exist. I moved in April to Texas with no such tax. I heard rumor of a tax on state and local government pensions where they'd tax your pension before it left Merryland because it had been earned there.
    A search of Google turned up nothing but I wouldn't put it past Owemally to try and pull that crap though.
    As it is my pension is free of any state tax.
     

    Benanov

    PM Bomber
    May 15, 2013
    910
    Shrewsbury, PA
    I lived up here for 3 months before swapping tags, but I'd already swapped insurance... It just took mailing my insurance binder to the MVA and it all got cleared up.

    The other thing to note is that you need to make sure that your insurance company covers from the date you switched. I took over 6 months last time I switched and so they only sent in the last 6 months. I had to do some serious yelling at State Farm. Didn't change the fine, but I felt better screaming at those idiots.
     

    Users who are viewing this thread

    Latest posts

    Forum statistics

    Threads
    274,919
    Messages
    7,258,782
    Members
    33,348
    Latest member
    Eric_Hehl

    Latest threads

    Top Bottom