DS News

86 DISTRICT OF COUMBIA D.C. Residents Burdened With Tax Moving costs can certainly add up quickly. However, when the movers have been compensated and the down payment or deposit has been paid, those who have moved across state lines may find the longer-lasting financial impact comes in the form of taxes. Moving from one state to another could cost or save homebuyers an average of up to $7,760 in taxes, and that's not a one-time fee. at's how much more would be owed or retained each year, according to a new study by Hire a Helper. Hire a Helper reviewed income, sales, and property taxes in all 50 states and the District of Columbia to determine the effective tax rate in each state. ey then calculated a total local tax burden based on the median wage for each respective state. e highest total local tax burden is in the District of Columbia, where an aver- age wage earner would spend about $9,730 in taxes per year. At the other end of the spectrum, Tennessee has the lowest local tax burden with an average wage earner spend- ing about $1,970 per year. e difference is $7,760, which is the highest average tax cost or savings between any two states. ese compare to a national average of $4,066 per year in taxes. Income tax makes up the largest portion of this total at $1,655, followed by property taxes, which average $1,538 per year nationally. With state income tax claiming a major portion of the total tax burden, it is no sur- prise that most of the states with the lowest total tax burdens were the same states that have no state income tax. "If you want a low tax bill, a smart strat- egy to get one might be to move to one of the nine states that levy no state tax on earned income," according to Hire a Helper. e states that do not charge income tax are Alaska, Florida, Nevada, New Hamp- shire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Of these, the only one that did not land a spot on the list of 10 states with the lowest tax burden was New Hampshire. Following Tennessee with an average annual tax burden of $1,970, the states with the lowest tax burden are Nevada ($2,002 per year), South Dakota ($2,112 per year), Florida ($2,131), and Alaska ($2,274). e states with the highest tax burden following the District of Columbia with $9,730 are New York ($7,170), Connecticut ($6,782), Massachusetts ($6,368), and Illinois ($5,875). Hire a Helper also calculated an average effective tax rate for each state. e average effective tax rate for the nation is 8.2% of annual income. New York had the highest effective tax rate at 11.9%, followed by the District of Columbia and Connecticut both with an ef- fective tax rate of 11.4%, Illinois at 11.2%, and Massachusetts at 10.3%. Alaska has the lowest effective tax rate at 3.9%, followed by Nevada at 4.4%, Tennessee at 4.5%, Florida at 4.8%, and Washington at 5%. FLORIDA Foreclosure Law and Attorney Fees In the case of Nationstar Mortgage LLC v. Glass, the Florida Supreme Court judge recently issued a ruling withdrawing its January 4, 2019 opinion. e Fourth District Court of Appeal originally held that the bor- rower who prevails on standing by arguing the lender is not a proper party to foreclose the note and mortgage, cannot then turn around and use that same note and mortgage to recover fees. is opinion was reversed by the Florida Supreme Court. e original case saw borrower Ma- rie Ann Glass seeking attorney fees from plaintiff Nationstar Mortgage LLC after the dismissal of a foreclosure suit against her. e Florida Supreme Court originally sided with Glass, who argued that Nationstar was not a party to the mortgage contract and therefore could not bring a foreclosure suit. Glass won that suit, but began to recoup her court fees. "Because our case law is clear that a voluntary dismissal of an appeal renders the opposing party the prevailing party for the purpose of appellate attorney fees, and because Nationstar maintained its right to enforce the reverse mortgage contract in its appeal until the dismissal, we quash the decision below," said Justice Peggy Quince in referring to the original decision. Burr & Forman LLP reports that the Florida Supreme Court withdrew its opinion in Glass finding that it improvidently granted jurisdiction in the case since the Fourth Dis- trict's ruling in Glass did not actually conflict with any other Florida District Court of THE LEADER IN DEFAULT SERVICING NEWS Help shape the next issue of DS News. Drop us a line at Editor@DSNews.com. Florida Minority Certified Business MIAMI-DADE & BROWARD COUNTIES 786-499-6994 www.REOPitStop.com Luis@ContinentalRealtors.com RESNET ID: 106089 | Equator ID: 272261 Luis F. Guzman Broker/Owner Appeal opinion. e Florida Supreme Court said that under some circumstances a lender could be taxed fees even though a borrower prevails on a defense predicated on standing. Ad- ditionally, the Florida Supreme Court found that the lender in the Glass case was a party to the note and mortgage, despite the case's dismissal at the trial court level, and so the lender could be taxed the borrower's attor- ney's fees. According to JD Supra, due to the reversal, and "absence of jurisdiction", a new ruling from the Florida Supreme Court on this issue is not expected soon.

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