The one hundred and fifth day of the year, April 15th, also known as “Tax Day” is the annual day on which individual tax returns are due to the federal government. Not traditionally a day of celebration, for most taxpayers. However, if you live in Jackson Hole or in another part of the Equality State, you were not hit with as great of a tax burden as the remaining 49 states in the Union. There are many reasons why Jackson Hole is a desirable place to live, but come mid-April you can be even more grateful for Wyoming’s overall tax climate benefits.
Wyoming has once again been awarded the most tax-friendly state in the Union for the fiscal year of 2015. The state’s dismissal of corporate and individual income tax secured its top rank in The Tax Foundation’s State Business Tax Climate Index.
The tax benefits of buying a home in Wyoming are substantial, according to David Toran, CPA. David is the owner of Toran Accounting, a certified public accounting firm in Jackson that provides tax preparation, planning services and specializes in the tax implications of real estate transactions, investment income, and small businesses.
“We work with clients all across the country,” says Toran. “It always amazes me the amount of money clients save in taxes when they have established residency in Wyoming. There is no state income tax. No state gift tax. No inheritance or estate tax in Wyoming. Let’s take two clients—one from Wyoming and one from another state. They sell the exact same stock. Both have a gain on that stock of $100,000. Long term capital gains tax rates are as high as 13.3% in other states. One client is paying up to $13,300 in state taxes alone. The Wyoming client pays nothing! Exact same stock, but the Wyoming client is getting a much larger rate of return simply by being a Wyoming resident. Now apply that to your wages, profits on your business, selling your house, your investment income…. Think about the impact of that over the course of your lifetime. There isn’t even a tax when you leave all that to your children.”
Now that your taxes are filed (or you have hopefully filed for an extension), you can get back to enjoying the numerous other reasons you decided to live in Jackson Hole. Jackson Hole Mountain Resort might be closed for the season, but there is still plenty of snow if you are willing to earn-your-turns and hike the Glory bootpack or set the skin track in the park. The trails in Cache Creek are drying up between the brief snowstorms, so maybe take that tax return and treat yourself to a new mountain bike (or a used one at the bike swap). And remember the Teton Park Road is now open for non-motorized travel until May 1, so grab your bike, blades or board and go enjoy the natural splendors of Grand Teton Nation Park, admission to the National Parks is free this weekend in celebration of National Park Week.
While we’re still a few months off from the park being this snow-free, April can be the best time of year to travel the inner roads under your own power—completely free of cars.