Tomorrow evening is the semiannual town meeting where I live, North Reading, Massachusetts.  Everyone gathers in the high school auditorium to vote on matters of local governance.

In preparation for the budget discussions, I thought I’d take a look at the local property tax rates.  The Massachusetts Department of Revenue keeps an online historical record of the rates for every municipality in the state.  It took a little massaging in Excel, but here is a list of property tax rates from 2003-2009. Continue Reading »

On July 24th the Federal minimum wage will increase from $6.55 to $7.25 per hour.  Adjusted for inflation, the minimum wage is lower now than when I was in high school.  I’ve worked minimum wage jobs at a fast-food joint, a pizza place, and as a cashier in a chain drug store, but only during high school and college.  I can’t imagine trying to support myself, let alone a family, on those wages.

The wage increase won’t affect Massachusetts residents, as our state has a minimum hourly wage of $8.00.

Everyone, even those making minimum wage, will be affected by the increase in Massachusetts sales tax from 5.00% to 6.25% as of August 1st.  Sales tax affects lower income folks disproportionately, as they spend a greater percentage of their income on necessities.  Food is exempt from the tax, but other essentials such as toothbrushes, laundry detergent, and car parts are not.  If we have to raise taxes on the general population, I’d rather see an increase in the income tax.  Of course I’m amazed that a (normally) progressive state such as Massachusetts has a flat income tax.  The guy making minimum wage is paying the same rate as the hedge fund billionaire.  Except, of course, the billionaire can afford lawyers to find tax loopholes.

I guess taxes really are just for the little people.

Doncha wish that when you finished the exhautive (exhausting?) TurboTax interview that you could just press that enticing “File Return” button, and all would be complete?

Yeah, me too.

Yet every time I think I’m finished, another issue pops up and nags at me to investigate. Continue Reading »

About a month ago, I posted on the tax deductability of the excise tax paid on cars in Massachusetts.  Over 50 folks have read this post.  Maybe everyone already knew about this deduction, but let’s say that it was new to half of them.  The average car is worth, perhaps, $10k, and at an excise tax of $25/$1k, that would be a $250 deduction.  Assume a 25% marginal tax rate, and that post might have saved the readers over $1500.

Hey, that’s some good!

Let me know if this was a new deduction for you.

Keep Out Of Debt

In the 1930’s, during the last Great Depression, financier Roger Babson personally funded the carving of moralistic slogans into boulders in his boyhood stomping grounds near Gloucester, Massachusetts.  By employing several rock carvers, he helped support the local economy.  Judging from the messages he chose to carve, he preferred to spread his largesse through employment rather than donations.  Sort of a personal WPA project.

Do you think we’ll see such civic support soon?

Photo from The Dacrons.

In Massachusetts, you may be able to deduct your FastLane tolls and the amount you paid for MBTA weekly/monthly passes to commute by rail, bus, or boat.  Continue Reading »

If you have tax questions, please send them to me.  I’d be happy to answer them in a future post.

There are other tax information resources in Massachusetts.

The Boston.com website (run by the Boston Globe) has a forum section where you can ask your tax question to a CPA.  Kudos to the Massachusetts Society of CPAs for volunteering their time to answer questions.

Of course, you can always ask the IRS.  I’ve had less than glowing results with using this service.  It takes forever to get through on the phone, and when you do, the IRS doesn’t stand behind their answers.  When calling them you should write down the day and time and the name of the person you spoke with.  This information should help, should questions arise later.

You can also visit an IRS office and ask your question in person.  There are several in Massachusetts.  Each office has different hours and offers different services, so check online (and maybe call first) before spending your gas to get there.

Yesterday, the Massachusetts Department of Revenue announced that it will offer amnesty to over 159,000 individuals who owe back taxes to the Commonwealth.  The selected individuals will receive a notice that they are eligible to participate.  They still need to pay the tax, but the DOR will waive the penalties.

A small but welcome break in these troubled times.

Massachusetts DOR Announcement, 2/23/2009.