Which would you choose? Florida or Alabama

[kcladyjane]

My husband and I are considering a move to the Gulf Shores, AL area.  Since the state line of Florida is so close to Gulf Shores, I was wondering whether to live in Florida or Alabama.  I was wondering which state would be the most tax friendly income, food, gas, & property wise.  We will be renting an apartment so our only property will be cars.  I will try to look up this info, but sometimes it is easier to get good info from people who actually live in those states.  Also, do you know how the DMV works on car sales tax?  In MO I would only pay tax on the difference between the new car price and the price of the trade in or the car I sold.  Does it work the same way in either state?  Or would you just have to pay for the full price of the car?  I know Kansas does this method.  I would love to hear any advice/info about Florida versus Alabama.  Oh and Gulf Shores is semi close to both Mobile and Pensacola so any advice on which of those would be best to work in.  Thanks!

[kcladyjane]

I work in Accounting/Finance/Banking with an Accounting Degree and my husband works labor or driving jobs with a CDL B.

[happyscooter]

I absolutely loved St. Pete in Florida.  I don't think I would ever leave this area but if I did, I would head south to Florida.

[Deleted]

Sad story related to moving and cars. We moved from MO to CA. We had recently purchased a new vehicle and had traded in a newish vehicle.. Our net sales tax was $70.

When we went to register in California they said WOAH, WAIT A MINUTE.. They applied the purchase price to their tax rate and then subtracted the $70. Suddenly we owed thousands..

They did this to keep current residence from buying out of state, but it really F'd us..

[Deleted]

Where are your jobs based? FL or AL? I believe FL has no state income taxes, so if your job is based in FL, it would make more sense to live there from a tax perspective, I believe. (I'm not an accountant though....). I'm fairly certain, from my experience living in Nj and working in Ny, that you pay taxes in the state where you work. In NJ, I then got a credit for the amount I paid in Ny. If even one of you was employed in FL, it might make more sense to live there to avoid taxes....

Again, not an accountant. Would suggest you speak to one to understand how taxing between states (ESP one with no state income tax) works...

[Deleted]

I'm guessing, MMC, that you didn't apply for title in MO?  That's the only way the scenario you describe would happen  in Alabama.  When you register the car after moving, you provide a copy of the title, not the bill of sale.  But if you didn't register it before moving, then they would probably expect sales tax based on the bill of sale. 

In Alabama, you pay sales tax on used car purchases.  It is not the full 9 or 10%, though.  It is on the entire purchase amount.   I personally think they should only tax it once, but I don't understand why the trade-in would matter.

We have income taxes in Alabama; I think you don't in Florida.  Alabama's is low, though.  Sales tax is high, as you can see.  Property taxes also seem to be low in Alabama, but some areas are higher than others.  The higher property taxes correlate to better schools.  You can pull a school district's "report card" at the ALSDE (Dept. of Ed) site.  I have no idea if the property tax in Florida is high or low.

Property insurance is high in Gulf Shores because of tornadoes, etc.  Someone else (maybe Zib?) can tell you if that is also true for Pensacola, etc.  Just an aside, but people in that area refer to Pensacola as LA, short for Lower Alabama.

[alabamagal]

The car transfer is a one-time thing.  I wouldn't worry about that too much.  The biggest thing is that FL has no state income tax.  AL is 5%.  If you live in FL but work in AL you will still have to pay AL income tax.  I think the sales tax is about the same, but I know Florida does not tax food purchases.

I love the Pensacola area.  I had a job offer there a few years ago, and researched the area.  it is closer to the beaches than Mobile.  Real estate is very reasonable, unless you are on the beach.  Mobile is a bigger city, so you might be more comfortable there if you are more used to city life.  Pensacola is a small city, and there is definitely a small town atmosphere.

[formerroomate99]

I wouldn't advise moving to Alabama if you're not protestant, preferrably southern baptist. 
Of course, my experience is of one town 30 years ago.   

[Chocolate Lover]

Your car insurance is going to be higher in FL, but they have no state income tax. There is a Navy base and a couple of colleges, so if you're thinking about renting, there won't be many lower cost places because they have a steady stream of incoming renters.



AL has its own issues, but of the two, I'd go with it.  

[Deleted]

I think of Gulf Shores as a beach destination, not a place to live year round.  It would be like living in Panama City.  For that reason, I might prefer Pensacola.

I'd personally find a job first and let that dictate where I decided to live.  The differences just aren't that significant. 

[gambler]

having lived in both pensacola and mobile I would take pcola. No state income tax, no sales tax on food not at much good old boy politics. property tax is a little higher in fla but if you only have your cars it should not be too bay. I think sales tax on a new car is 4% of the price between your trade in and new car. for housing in pcola go to the north west toward contoment, it is away from the base and reasonable. there is also a active down town area, great beaches, good restrants, I will mention that it has a large gay population. If moble is your choice stay away from down town and the east side of the city. Move to the west or south west. there is nothing down town worth doing or seeing, you pay state income tax tax on food, tax on new car is 6%. high crime, low wages and are constantly hearing bibles thump. if you have any specific questions you can ask me as I still live in the area.

[zibazinski]

I'm thinking we are gong to end up in the St. Pete area because DF wants golf course and water and I can't get that in Clearwater. Not close anyway. I vote FL of course. For reasons that I won't post publicly.

[imawino]

Florida, because of no state/local taxes and no sales tax on grocery items.  That said, finding a job and then being close to said job might change my decision. 

[Sam_2.0]

We live in MO, DH works in KS, we end up paying taxes in both states (MO first, and then the difference to KS since it is higher). Sucks. I would try to live & work in the same state if at all possible just to streamline that process. But it's not uncommon to live in one state & work in another, and if the biggest hassle is finding some extra forms to file at tax time I would just hire someone to do them.

[Chocolate Lover]

Gambler, did you live in Cantonment? I have,can't recommend it more than the Gulf Sores AREA. I'd go further north, but she would be in the middle between the 2 large cities, for work possibilities. 

[gambler]

I lived on the very north west edge of pcola for a few years, after my last over seas tour my wife wanted to go back to mobile (she originaly from this hole) we did. I very often ask my self after traving the world for 30 years HOW THE HELL did i wind up here! 

[Chocolate Lover]

You couldn't pay me to live in Mobile. I'd rather eat glass every day for eternity.  

[Deleted]

 DH always refers to this area as the Redneck Riveria

[ontrack]

Jul 18, 2013 10:26:05 GMT -5 Sam_2.0 said:

We live in MO, DH works in KS, we end up paying taxes in both states (MO first, and then the difference to KS since it is higher). Sucks. I would try to live & work in the same state if at all possible just to streamline that process. But it's not uncommon to live in one state & work in another, and if the biggest hassle is finding some extra forms to file at tax time I would just hire someone to do them.

Huh. I work in DC and live in VA.  They must have a special agreement because I get taxed by VA, not DC (it's the same with the people living in MD too).  I didn't realize it didn't work that way everywhere.

[Deleted]

Jul 18, 2013 12:39:44 GMT -5 ontrack said:

Jul 18, 2013 10:26:05 GMT -5 Sam_2.0 said:

We live in MO, DH works in KS, we end up paying taxes in both states (MO first, and then the difference to KS since it is higher). Sucks. I would try to live & work in the same state if at all possible just to streamline that process. But it's not uncommon to live in one state & work in another, and if the biggest hassle is finding some extra forms to file at tax time I would just hire someone to do them.

Huh. I work in DC and live in VA.  They must have a special agreement because I get taxed by VA, not DC (it's the same with the people living in MD too).  I didn't realize it didn't work that way everywhere.

DC has reciprocal agreements with with MD and VA for withholding.  Not all neighboring states have reciprocal agreements.

[alabamagal]

Jul 18, 2013 12:32:01 GMT -5 @bonnap said:

 DH always refers to this area as the Redneck Riveria

Panama City Beach is the capital of the Redneck Riviera!!  Pensacola is much quieter area.  But it is definitely a Redneck area.  In Florida, the farther north you go, the more Southern you get.

[zibazinski]

[Deleted]

Yes, Pensacola (and Panama City) form the Redneck Riviera.  I just can't imagine why you would want to live in Gulf Shores.  It's a tourist/vacation town.  Pensacola is a little better.

[Deleted]

Jul 18, 2013 8:43:42 GMT -5 @southernsusana said:

I'm guessing, MMC, that you didn't apply for title in MO?  That's the only way the scenario you describe would happen  in Alabama.  When you register the car after moving, you provide a copy of the title, not the bill of sale.  But if you didn't register it before moving, then they would probably expect sales tax based on the bill of sale. 

We had titled in MO.  California didn't care.  The law stated either 6 months of 12 months would have needed to pass to not get hit with the tax (which they classify as USE tax in this situation).

[mmhmm]

Jul 18, 2013 10:51:44 GMT -5 gambler said:

I lived on the very north west edge of pcola for a few years, after my last over seas tour my wife wanted to go back to mobile (she originaly from this hole) we did. I very often ask my self after traving the world for 30 years HOW THE HELL did i wind up here! 

LOL!  Oh, man, can I empathize!  I often wonder the same thing! 

[kcladyjane]

Thanks everyone for the advice and information.  Southernsusana - we are interested in a change.  We will be renting so I don't think we would permanently live in Gulf Shores, but who knows.  We have this theory or dream that living in a vacation town will make us feel like we are on vacation everyday.   Sounds silly, but we live in MO.  So a switch to a Ocean/Beach area will be nice.  Plus we like to take weekend trips and I feel like we have exhausted a lot of those around MO.  It will be an adventure.  If we don't like it there we can always go someplace else.   And no...we don't have any children that we are dragging around the country.  Just me and my hubby and our Boston Terrier.

[Peace Of Mind]

Jul 18, 2013 12:46:29 GMT -5 alabamagal said:

Jul 18, 2013 12:32:01 GMT -5 @bonnap said:

 DH always refers to this area as the Redneck Riveria

Panama City Beach is the capital of the Redneck Riviera!!  Pensacola is much quieter area.  But it is definitely a Redneck area.  In Florida, the farther north you go, the more Southern you get.

This is so true!  I vote Florida and that area was gorgeous last time I was there.  But it's been over 10 years.