I recently came across a question on an online real estate forum that I found quite humerus and wanted to address it here. The question was, "Is Texas paying people to move there?"
This person is in California and complaining about the new tax increases for 2013. He pointed out that many people from CA are moving to Texas and there would be many more if the cost of moving wasn't so high. He feels it will take him 12 months to reach a break-even for the moving expenses so it would be a good thing if there were "any incentives for individuals or families moving to Texas".
Can you guess the answer? The quick answer is NO! Texas doesn't have a state income tax so reducing a 0 to below 0 doesn't do anything. Texas can't reduce the Federal Income Tax rates as they have no control over that. Home owners already receive a Homestead exemption when property is purchased as a primary residence, so the incentive is for people to buy houses not just rent.
Did these responses satisfy this guy? Nope, not in the least. He kept saying we weren't understanding his question. He went on further to state, "That's not what I meant... I was curious if TX is offering a tax incentive for moving sort of like what it offers businesses but for individuals." Isn't that just restating his initial question? Same answer. Texas has NO individual state income tax so that is already the incentive to move here!
So just to be clear, he writes again about how people aren't understanding him and "Texas would just be allowing me to keep more of the money I earn. I figured if they were wiling to do it for businesses, might there just be something similar for individuals?????" Yes, he had 5 question marks. Is the answer still no? Yes, the answer is no.
Let me make myself a bit more clear, TEXAS HAS NO STATE INCOME TAX!! Having no state income tax is already putting more money in an individual's pocket or piggy bank, hence allowing people to keep more of the money they earn. If he buys a house, he will get a reduction in property taxes when he files for a Homestead Exemption, which is free to file. What more does this guy want?
Texas is having a huge population surge. We don't need to pay people to move here. People are moving here because they want to and because they know it's a great place. We have jobs. We have low housing prices. We have a great economy. The incentive to move to Texas? A potentially better life with potentially more opportunities for you.
Though this does beg the question, "Should Texas give incentives to people who have lived here their entire lives?" Oh wait, we have that too, if you are a property owner. If you're over 65 years old, you get to file another exemption on your property to freeze your taxes and you can carry it to another house as well. Again, you must be a property owner and it must be your primary residence. And guess what?? You can file the Over 65 the day you turn 65, and if you just moved to Texas, you can have the exemption! You don't have to be a long time Texan to receive that benefit. How is that as an incentive to move to Texas?
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* Is Texas Paying People to Move There - Texas Population Surge * was first published on donnahomesblog.com.