October 13, 2014
Who pays sales tax and who pays property tax? How can they both be reduced in a couple of really simple ways?
Who pays sales tax and who pays property tax? How can they both be reduced in a couple of really simple ways?
You can avoid paying sales tax by not eating out so much, you do not pay sales tax on food that is bough in the stores that is not premade. You can also avoid sales tax by buying your clothing on one of the sales tax free days before school normally starts. Many online companies do not charge sales tax so check ebay and other sites to see if you can get your items there. If you buy a video game online as a digital copy there is no sales tax on it either. You can avoid paying property taxes by not owning property. Property taxes are payed by the owners of land. If you rent your house or apartment you do not directly pay property tax, it may be figured in to the monthly rent but you are not directly paying it. The people who pay sales tax are those who buy things in stores, in states with sales tax, if your visiting a state without sales tax you can stock up there if that works for you. Property taxes are paid by land and property owners.
Well said, Garrett. Let’s review.
You will pay less sales tax when you buy less “stuff,” eat out less often, and be more mindful of the money spent on a month to month basis. Understanding bait and switch, implementing the 30 day waiting period, and clearly understanding where your weak spots are when it comes to spending, will help.
You can reduce your property tax bill by buying a smaller home, renting, or even challenging the property tax bill with your local authorities. Bottom line? There are many options in life and the decisions you make today will not affect you today, but in many cases, for years and decades to come. Pause before buying. Think long-term. Your future self will thank you!