Stupid Tax

A stupid tax is a tax you don’t have to pay if you’re smart enough to avoid it. Right now in real estate, across the country, people buying homes are pulling out their wallets to pay up – bidding up the price of homes well beyond what anyone thinks they’re really worth.

In this episode, we cover what we’re doing in the trenches to help our clients avoid paying the stupid tax.

Video Transcript

Vehicles

  • Motor Vehicle Registration – Registration $8.00; Air Quality $1.50; Title Fee $4.00; Total Registration: $13.50
  • Vehicle License Tax – In addition to title and registration fees, Arizona assesses a vehicle license tax in lieu of a personal property tax on all vehicles registered in the State. This is based on the manufacturer’s based retail price for the vehicle, when new, less depreciation. The value of the vehicle is decreased 40% the first year and 15% each year thereafter. You will be charged a rate of $4.00 per $100.00 of the vehicle’s taxable value in any year. This will decrease to a minimum annual charge of $10.00. Required to have an Arizona Standardized Insurance Card.

Taxes

  • State Income Taxes – Tax rate is 10% to 32% of your Federal Income Tax; For more info, click here.
  • Income Exemptions – Social Security benefits and up to $2,500 on federal, Arizona state and local government pensions are exempt.
  • Property Tax – Real property is accessed at the range of 1% – 1.5% of market value of owner occupied property. This includes State, County, Community Colleges, City and Schools. Property Tax Calculator – Here is a link to an online tax calculator you can use to estimate your property tax in Prescott…
  • Property Tax Calculator Click Here
  • Corporate Income Tax – Flat tax of 6.968%. The minimum amount collected by Arizona Corporate Income Tax is $50.00
  • Sales Tax – Arizona has a general sales tax of 5.6%. Yavapai County has a .75% sales tax, and the City of Prescott has a 2% sales tax, for a total sales tax of 8.35%
  • Homestead Exemption – Those who are disabled or whose spouse died while residing in Arizona can receive an exemption of $3,000 off assessed value. TO qualify, the full cash value of one’s home must be less that $203,860.
  • Estate Tax – None