“I like to pay taxes. With them, I buy civilization.”
― Oliver Wendell Holmes Jr.
My buddy Bo is worried about the consequences of me spending too much time in New York state. "Dude, watch out. Once they decide you live there, they'll take your paycheck."
I hear this a lot. My friends up here dream wistfully of living larger in Florida, keeping more of their earnings because there's no state income tax. My Florida friends assume the hills of the upstate are filled with paupers who scratch out a living only to hand it over to the revenuers.
But let's step back, shall we, and examine the premises upon which these perceptions rest. Let's build a hypothetical Florida man,
and compare his financial situation to his counterpart just over the hill in beautiful Hector, New York.
Yeah, we have a bunch of Amish up here. But let's pretend this guy is a Mennonite, so he's paying an electric bill and driving a Suburban (always painted black!) full of little bearded Mennonite kids headed to soccer practice.
Before we talk about outflows, we need to consider income. New Yorkers are some of the highest paid workers in the country, although the City probably influences that to a degree. The average wage here is $80,000 a year. Back in Florida it's $54,000. So old Jedediah there is making over a third more money every year than his mullet-sporting counterpart down in the swamps of Sopchoppy.
But there are income taxes here. Yes indeed. They run between 4 and 8.82 percent, before taking deductions. Our Mennonite guy will pay the Empire State $4,650 a year on his salary. Florida Man keeps all of his paycheck.
Property taxes are also pretty stout here, especially if you live in town. We pay around $7,000 a year. Back in PC it was more like $1,800 last year. A big difference.
So we've found around $10,000 a year that a New Yorker pays out in taxes above what the same wage earner would expect in Florida. The federal tax write-off for state and local taxes is $10,000, so it comes out as kind of a push unless you're a very high earner, in which case the bite is a little more deep.
But back home our state sales tax is 6%, while up here it's 4%. The average household spends around $70,000 on various personal expenses, some of them subject to sales tax (but excluding housing and food). Maybe shopping in the Sunshine State means an extra $1,000 hit in a given year, unless purchases include something big like a car.
Then we look at non-tax expenses. This place hasn't been destroyed by a hurricane in a half-century, so coverage is pretty cheap compared to Florida. Our total property insurance bill is higher here, but we have literally five times as much coverage as back at 407. Apples to apples, I don't think anyone would question the premise that insuring property in hurricane alley costs more than in the middle of New York state.
Utilities are a push. Our power bills are typically a fraction of what they are in Florida, especially in the summer months when central air is necessary for survival down there. On the other hand, our bills for gas heat during frigid New York winters could choke a hog, in part because our old cast iron radiators are caked in paint and inefficient. Winters here and summers there seem to cancel one another out.
Our fuel bills for our cars are significantly lower here. Why? We walk everywhere--to the grocery store, to supper downtown, to church (when we go--we've been remiss lately). One can't go anywhere in Florida without firing up the old pickup. I chalk it up to the fact that the towns up here were mostly laid out before the automobile age, while Florida is pretty much a product of America's car infatuation.
Then there's the matter of housing. Florida is now the most expensive state in the nation in which to lay one's head, with average rents pushing $3,000 a month.
Figure you'll avoid getting gouged for rent by buying a place instead? Think again. Prices have doubled or tripled in the last decade, depending on the market. That funky little craftsman cottage on the market for $140,000 in Elmira or maybe $190,000 in Corning will set you back $450,000 in Panama City, if you can find one at all. And, of course, that means more property taxes as well. So that Desantis loving Parrot Head in Sarasota with the pay stub a third lighter than his Yankee counterpart will literally pay over half his take-home pay on a place to live. Enjoy your freedom.
Which leads to the intangibles of the two venues. The schools up here are well-funded, and by all accounts provide a superb education for the kids lucky enough to grow up in these hills. My former paralegal back home is now starting her second or third day as an elementary school teacher in a blue collar section of town, and had to set up an Amazon gift page so friends and family could donate school supplies. No kidding.
The roads here are in great shape. The infrastructure isn't crumbling. A bitcoin mining operation showed up along the shore of Seneca Lake a few months ago, and the state environmental regulators unceremoniously shut down their attempt to expand their operation and heat up the water in that beautiful, delicate gem.
Can anyone imagine a Florida regulatory agency doing the same? It's all about the jobs, baby. To hell with the environment. Jesus is coming soon. No need to worry about fouling our grandkids' nest.
So I guess, in the end, taxes and cost of living aren't the reason to make a home in New York or Florida. It's all kind of a wash, isn't it? For those lucky enough to be able to choose where they wake up every morning, it's more a matter of finding a space that feels right, an individual decision.
And this 53 degree morning feels pretty right to this old man and his lovely bride.
Happy Friday.
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