Sunshine Tax in San Diego

So, now that I've moved to San Diego and settled in somewhat, I find out about this mysterious "sunshine tax." Never heard of it? Neither have I until I moved here. Apparently, that's the higher price you pay (lower wages, higher living cost) for living in a place with great weather. I got curious about my living expenses at various places so I started to compare. I did, after all, move around quite a bit so I have first-hand experience in what things cost. So I looked at Oakland (2002-2004), Montgomery, Alabama (2004-2005), and San Diego (now).

I do have to say, I have a higher overhead, fixed cost than when I lived in Oakland. Course, nothing beats $600 rent in Alabama (which got you an ENORMOUS walk-in closet, two community pools, tennis court, free breakfast, etc. ) but I did hope to find a slightly lower rent in San Diego than SF bay area. Not so. In Oakland, I was paying $1350 by the time I left in mid 2004. That was in one of the most expensive part of Oakland (Rockridge), with a huge apartment that could accommodate my upright piano. I was hoping to find maybe $1300 max in downtown San Diego. Well, I'm paying almost $100 more. At $1430, I do get certain benefits -- 10 minute my-apt-door-to-office-chair walk to my work (a HUGE benefit), fitness center, pool, nice area.

My utility bills from Oakland was the lowest compared to Alabama and San Diego (average $20 per month). I paid quite a bit more while I was in Alabama (average $50 per month). So far in San Diego, I've had about $35 per month gas/electricity bill. I didn't pay for water in Oakland but did in Alabama ($25 per month average) and am doing so in San Diego ($30 per month so far).

As for phone/cable/internet deals, once again, nothing beats what I had in Oakland. Altogether, I averaged about $60-70 per month but I had a lot less (no long distance, the most basic analog cable). In Alabama, about $85 per month and that was still without long distance for my phone or digital cable. Here in San Diego, $103 per month but I'm getting a lot more amenities, long distance, high internet speed, and digital cable with DVR (although I had to call 3 times to get Cox to get rid of ridiculous charges).

The bottom line? Don't think the South is cheap. Alabama isn't cheap when it came to your everyday expenses. The biggest factor, rent, was the cheapest and gas was definitely cheaper than California but everything else that went with it was higher than anywhere I've lived in California. AND, Montgomery, Alabama had the highest sales tax rate (10%) on everything, including grocery and water! Talk about taxing the poor (and it did make me feel poor ;).

Oakland tax rate, from what I understand, has gone up so now it's one of the highest in California -- 8.75% -- but it used to be 8.25%. Los Angeles has 8.25%. San Diego does have the lowest sales tax rate so far at 7.75%. Does that make a difference? Sure, why not? Especially if I'm paying higher rent and utilities, I might as well be happy that I can buy contact lens solutions, clothes and shoes for less.

In case you were wondering how I could possibly make all this analysis, I keep fastidious notes about my expenses, with categories and totals I made up (I hate Quicken). I made my own special excel spreadsheet that I think kicks Quicken's butt (but that's my biased opinion) and have been keeping track of my expenses, cash flow, and monthly savings since 2002. I used to keep track before 2002 as well, but they were handwritten notes... and then in 2002, I realized the beauty of Excel. :P Thus, I am probably one of very few in America who can analyze the cost of living at various places. My excel spreadsheet, I think, scares some people when they see it but it is interesting to see just exactly what the difference in cost of living is instead of getting some vague perception of what it might be to live in some place.

Anyway, so I concluded that there might be a bit of "sunshine tax" in San Diego but all things considered, I'm probably at the same level as I was in SF bay area (no commute = no gas/transportation cost = monthly savings!).