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Spokane, Washington  Est. May 19, 1883

Retirees Cast Doubt On Cost Comparisons

Frank Bartel The Spokesman-Revi

Cross Santa Fe off your retirement list.

It’s not what it’s cracked up to be, advise Ron and Carolyn Gooley of Cheney, and they should know. They moved here from there to escape the high costs of taxes, shelter, clothing, food - even water - and just about everything else.

In other words, you probably can’t afford to retire in Santa Fe, despite what Alan Fox said a few months ago in this column.

Fox, some readers may recall, co-authored a book called “Tax Heaven Or Hell.” It compares the total impact of state and local taxes in 149 locales on nine hypothetical retired couples with varying incomes and home values.

“Spokane is not heaven, but it’s not hell either, at least not as far as taxes for people 65 and older are concerned,” Fox informed me.

For all nine fictional couples, Anchorage was the least expensive. Pittsburgh was the most. Spokane was somewhere in the middle.

But Fox stressed, “The difference between cities can be staggering. Take the case of a retired couple both age 65 who earn $34,000 a year and live in a home valued at $150,000.

“If that couple moves from Spokane to Santa Fe, N.M., and buys a similarly priced home,” Fox said, “total state and local taxes will fall from $4,150 to $2,099 - a drop of $2,051 or 49 percent!”

However, either the Gooleys are an exception to the rule, or the book’s collaborators got some things cockeyed. In a stinging written rebuttal, the Gooleys took Fox’s analysis apart by the numbers:

“One - A retired couple earning $34,000 could not buy an equivalent home in Santa Fe for $150,000. Yes, they could find housing for that amount. But it would be smaller and/or in a less desirable area.

“Many Santa Fe workers commute from Albuquerque (65 miles) where they can purchase reasonably priced housing. Housing equivalent to what we have here would be about 40 percent higher in Santa Fe. Perhaps the statement about lower taxes is based on property taxes and automobile licenses; they are lower in New Mexico.

“Two - However, in New Mexico, ALL purchases are charged a sales tax ranging from 6.5 to 7.1 percent. This includes all groceries and medicine, which are excluded in Washington.” Seniors as a group experience especially high expenses for drugs and medications.

“Three - New Mexico has a state income tax. It is 8 percent of your taxable income as identified on your federal tax form. When we add our licensing costs and property taxes, we still pay no more than what our tax burden was in New Mexico.

“Four - Mr. Fox also did not discuss other expenses in Santa Fe.

“Water is a premium commodity in the Southwest, and in Santa Fe it is quite costly. We have friends whose water and garbage bill consistently runs more than $100 a month, and sometime much more. You don’t see many lawns in Santa Fe. Gardening is not like in Washington.

“Electricity is more expensive by about 35 percent.

“Restaurants in general are very expensive, unless you choose to eat out only at lunch.

“Shopping in Santa Fe is very expensive. It is a very popular tourist town visited by the wealthy. Pricing is based on what the ‘traffic will bear.’ “Most city lots are now in gated communities or very expensive areas. Prices for lots within Santa Fe city limits range from $25,000 to $400,000 - land only.

“Yes, Santa Fe is a lovely place to live,” the Gooleys concluded. “But we simply could not afford to live there in the style that we can afford here. So, instead we took the criteria we identified as very important to us, and we chose to move to the Spokane area.”

In their critique of Santa Fe, the Gooleys, long-time residents, set forth even more reasons for picking the Inland Northwest than forsaking the Southwest. And finally they confessed, “Yes, we miss our friends, loved ones, beautiful skies, and even a few excellent fishing spots.

“But we are proud of our new home and new friends, and we are gradually becoming Washingtonians.”

, DataTimes MEMO: Associate Editor Frank Bartel writes on retirement issues each Sunday. He can be reached with ideas for future columns at 459-5467 or fax 459-5482.

The following fields overflowed: CREDIT = Frank Bartel The Spokesman-Review

Associate Editor Frank Bartel writes on retirement issues each Sunday. He can be reached with ideas for future columns at 459-5467 or fax 459-5482.

The following fields overflowed: CREDIT = Frank Bartel The Spokesman-Review