Delaware: Worried about Maryland's low taxes
The taxes are always lower across the border. At least that's what anybody arguing against a tax increase always claims. Here's a real estate agent being quoted in a budget story Tuesday's News Journal of Wilmington:
"Delaware already has among the highest transfer taxes in the country," said Camilla Conlon, a real estate agent with Jack Lingo Inc. in Rehoboth Beach and president of the Delaware Association of Realtors. "To add another quarter percent for us will drive buyers to Maryland, Virginia, Pennsylvania."
Maryland transfer tax rates run as high as 2 percent, if you combine state and local charges. In Delaware they're as high as 3 percent. When you have no sales tax, you have to make up the revenue somehow.
Comments
Note the realator quoted is from Rehobeth, where a large portion of the real estate transfers involve rental properties. Residents of Delaware are not as concerned-they pay no sales tax, and the income tax for a person living in Sussex county is far less than for a person living in Wicomico county-$1900.00 less for a family with 100K in taxable income. You in effect earn back the difference in transfer tax in the first year on a 200,000 home, and end up ahead every year thereafter.
Posted by: Dan from Elkton | January 10, 2008 11:08 AM
"When you have no sales tax, you have to make up the revenue somehow.". Insert "personal income tax" into that statement and that describes Florida, where I lived for 13 years until 2006. People just hear that FL has no income tax and assume you pay less taxes overall. You don't.
They make up for it in higher sales taxes (state rate is 6% and almost all counties add more, typically another 1/2-1%), higher telecommunication taxes (phone, cable, wireless), higher rates for water, higher taxes on electricity, you name it.
But, some people just don't want to look at the big picture.
Posted by: PK | January 10, 2008 11:09 AM
even though narrator has described about the estate properties delaware is not going to be a big issue
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harison
Addiction Recovery Delaware
Posted by: harison | July 5, 2008 11:27 AM
it seems to be really unfair for the real estate agents... the increase in tax many reduce there business .. so please think in that point of view too.
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TONYGREIG
Addiction Recovery Delaware
Posted by: TONYGREIG | July 5, 2008 12:16 PM