ARE SOUTH CAROLINIANS OVER TAXED?

Ashley Brinson

SOUTH CAROLINA TAX COMPARISON:

South Carolina was compared to five states within the United States when making a determination of over taxation.

Comparisons were based on states with similar populations, states discussed frequently in class, and one at random.

Taxes analyzed in this comparison include; state sales tax, gasoline tax, cigarette tax, and property tax.

STATE POPULATIONS:

Alabama; 4,779,736

Arizona; 6,392,017

Louisana; 4,533,372

Michigan; 9,883,640

New York; 19,378,102

South Carolina; 4,625,364

COMPARISON OF GASOLINE TAX:

Al-abama13%

Ari-zona

12%

Louisana

13%Michigan23%

New York28%

South Carolina

11%

STATE Gasoline Tax

Alabama20.9

cent/gal

Arizona 19 cent/ gal

Louisiana 20 cent/gal

Michigan36.1

cents/gal

New York44.4

cents/gal

South Carolina16.8

cents/gal* Based on 2011 taxes

GASOLINE TAXES; APRIL 2010

COMPARISON OF CIGARETTE TAX:

Alabama4% Ari-

zona19%

Louisana3%

Michigan25%

New York42%

South Carolina

6%

STATE Cigarette Tax

Alabama 42.6 cent/20pk

Arizona $2/ 20pk

Louisiana 36 cent/20pk

Michigan $2.61/ 20pk

New York $4.35/ 20pk

South Carolina 57 cents/ 20pk * Based on 2011 taxes

STATE CIGARETTE EXCISE TAXES -- UNITED STATES, 2009

COMPARISON OF SALES TAX:

STATE Sales Tax

Alabama 4% - 12%

Arizona 6.6% - 7.5%

Louisiana 4% - 10.75%

Michigan 6%

New York 4% - 8%

South Carolina 5% - 8%

Al-abama20%

Arizona18%

Louisana18%

Michi-gan15%

New

York

15%

South

Carolina15%

* Based on 2011 taxes

SALES TAX; SEPTEMBER 2009

PROPERTY TAXES: Alabama –

The state does not collect taxes on personal property such as boats and computers. Each city and county may levy has its own millage rate. Homeowners 65 and older are exempt from all state property taxes. 

Arizona – There is no state property tax.  Tax jurisdictions set tax rates,

which may vary considerable from one area to another. Property tax is administered by county assessors.  Single homeowners 65 and older who earn less than $3,750 and married couples who earn less than $5,500 are eligible for a tax credit of up to $502. 

Louisiana – Taxes are assessed and collected at the local level -- 64 parishes

and 7 municipal districts.  The Louisiana State Tax Commission has a regulatory role regarding property assessments.  Property assessments are based on 10% of the fair market value of the property.  Homeowners receive a homestead exemption in the amount of $7,500

PROPERTY TAXES CONT’D:

Michigan – Property in Michigan is generally assessed at 50% of

its true cash value. Some seniors, disabled persons, veterans, surviving spouses of veterans and farmers may be able to delay paying property taxes.  It depends on the county of residence and your income level.

New York – Property taxation is limited to real property.  New York

State law gives local governments and public school districts the option of granting a reduction on the amount of property taxes paid by qualifying senior citizens.  This is accomplished by reducing the assessed value of residential property owned by seniors by 50%.  .  If a person's income is more than $29,000 but less than $32,400, the exemption is 5%. 

PROPERTY TAXES CONT’D:

South Carolina – South Carolina imposes a casual excise tax of 5%

on the fair market value of all motor vehicles, motorcycles, boats, motors and airplanes transferred between individuals. Property tax is assessed and collected by local governments.  Both real and personal property are subject to tax. The market value of a legal residence and up to 5 acres of surrounding land is assessed at 4%.  For homeowners 65 and older, the state's homestead exemption allows the first $50,000 of their property's fair market value to be exempt from local property taxes. 

AVERAGE TEACHER SALARIES

STATE RANKING

Alabama43rd

Arizona23rd

Louisiana44th

Michigan7th

New York5th

South Carolina

30th

Al-abama; 40,347

Arizona; 44,672

Louisana; 40,029

Michigan; 54,739

New York; 57,354

South Car-

olina; 43,011

FINDINGS OF TAX COMPARISONS:

Based on information from various sources it is concluded that South Carolinian’s are not over taxed.

Many taxes implemented throughout the state are geared towards tourists and are not a direct imposition on residents.

Residents of the state may feel over taxed, or unfairly taxed, however it is simply not the case.

REFERENCES:

en.wikipedia.org www.census.gov nces.ed.gov http://

retirementliving.com/RLtaxes.html