Is California Domicile a Bad Idea?

[graysailor]

Born, raised and worked in CA. Just too many people and the taxes are ridiculous. Presently I live in AZ but have SD as my state of residence. No more CA taxes on my pensions and vehicle taxes are a fraction of those in CA.

An outfit called America's Mailbox can help you become a resident and help with your vehicles. Since you are traveling then I might suggest you make a trip to Rapid City and do everything yourself. Really not that complicated.

Life is an Adventure

[Riverdrifter]

If you are earning income from a CA company you will pay CA taxes. Not on SS or pensions but earned income will be taxed. My parents moved to WA state when Dad retired but they receive income from a CA mini storage and he get commissions from his insurance business which are subject to CA income tax. I was born and raised in CA, moved to WA for college and never went back! Don't miss it at all but I have skiing 1 hour away, salmon fishing, catching prawns and crab 1/2 hour out in the boat, great bird hunting in eastern WA, and 300 days a year of sun at our second home in eastern WA. maybe when I'm old (I'm only 68!) I may need a warmer climate!

[Mike91208]

Originally Posted by zapper

Vehicles and licensing. As you may know already all PU trucks in CA are considered commercial vechicles. So my 2010 Tundra went from $75/per year for AZ license to $750/per year in CA and it never comes down.

This comment about the CA fees is simply wrong. I have a 2011 Tundra. I went from $443/year and now it's down to $361. The fees DO come down as the vehicle ages.

[Adiredneck]

Tax-wise, regulation-wise, and expense-wise, California rates among the highest. You may be stuck there (talk to a CA tax atty) because of your business - but maybe not. In most cases, a state can only tax you on income earned in that state (I own an out-of-state business). One of Cali's big negatives is that they tax pensions - which is another reason that retirees flee the Golden State.

In addition to researching income tax, insurance, registration, etc., let me add another: personal property taxes. States that tax cars, trucks, RVs, boats, etc. That can get pricey in a hurry. Since I own property and a business in New York State, that is where I register my TV and Airstream. Mississippi would charge me twice as much personal property tax on my toys as they charge me for my house! Also, USAA insurance is twice as expensive in Mississippi as in NYS (not NYC!!!).

Lots of hidden "gotchas" for those who do not do their homework...

Tim

[Shiny16]

Originally Posted by graysailor

Born, raised and worked in CA. Just too many people and the taxes are ridiculous. Presently I live in AZ but have SD as my state of residence. No more CA taxes on my pensions and vehicle taxes are a fraction of those in CA.

An outfit called America's Mailbox can help you become a resident and help with your vehicles. Since you are traveling then I might suggest you make a trip to Rapid City and do everything yourself. Really not that complicated.

Life is an Adventure

How could you possibly feel ok with this? Is this even remotely fair to your friends and neighbors in AZ?

[TG Twinkie]

You are kidding. Right? Your friends and neighbors taxes don't go up just because you change your domicile.

[Shiny16]

Originally Posted by TG Twinkie

You are kidding. Right? Your friends and neighbors taxes don't go up just because you change your domicile.

No I'm not kidding. If you clearly live in one state but claim residence in another solely for a tax advantage you are committing fraud.
I didn't say your neighbors taxes would go up but you are using all the services that they pay for and you do not. If you truly live in more then one place and must decide on residency then by all means pick the one with the lowest tax burden. Let's not sugar coat hiring a company to help you set up and maintain residency in a state you never plan to live in as anything more then what it is.

[prairieschooner]

Sorry but from what I know...you will have to pay income tax in California from what is earned in California. I have rental property here & will have to pay California income tax where ever I reside.

[Mollysdad]

But you'll miss out on the bullet train if you leave!

[graysailor]

In response to Shiny16 I have a ParkModel home in AZ so I do pay some taxes. I pretty much split up my time in AZ and whatever other state I am traveling in.

[Kyet]

Originally Posted by Adiredneck

Tax-wise, regulation-wise, and expense-wise, California rates among the highest. You may be stuck there (talk to a CA tax atty) because of your business - but maybe not. In most cases, a state can only tax you on income earned in that state (I own an out-of-state business). One of Cali's big negatives is that they tax pensions - which is another reason that retirees flee the Golden State.

In addition to researching income tax, insurance, registration, etc., let me add another: personal property taxes. States that tax cars, trucks, RVs, boats, etc. That can get pricey in a hurry. Since I own property and a business in New York State, that is where I register my TV and Airstream. Mississippi would charge me twice as much personal property tax on my toys as they charge me for my house! Also, USAA insurance is twice as expensive in Mississippi as in NYS (not NYC!!!).

Lots of hidden "gotchas" for those who do not do their homework...



Tim

I am changing my domicile (I plan to travel full time until I someday find that perfect location for me) because the Virginia personal property taxes are a killer. Totally fine with paying income tax. And of course I am mortified about where to land before the end of this year for helath insurance purposes (I have Blue Cross Blue Sheild). I am self employed and to young for supplemental insurance. I have 6 months to figure it out.

[uncle_bob]

Hi

People with boats run into this more than people with RV's. I suspect that the tax guys have more fun sitting at the yacht club watching stuff than sitting at the RV park. I'd bet that will change as the years roll on. If you have your boat in this or that state's waters for more than X days, they will declare you a part time resident and start charging you taxes. It *does* happen (Maryland !!). I'm sure that they are equally eager to go after RV "transients".

Bob

[weirdstuff]

Originally Posted by Mollysdad

But you'll miss out on the bullet train if you leave!

LMFAO!!!

[Shiny16]

Originally Posted by graysailor

In response to Shiny16 I have a ParkModel home in AZ so I do pay some taxes. I pretty much split up my time in AZ and whatever other state I am traveling in.

That some what different then your original post. If your truly a nomad then you have to pick somewhere. If you live in one state and use a service to claim residency in another state that you have no intention of living in solely for a tax advantaged then that is simply fraud.

[PatLee]

Another consideration might be having to pay property taxes annually on your Airstream? I remember hearing an ex-Californian complain about that. Perhaps another state would not tax the Airstream annually?

[Mike91208]

Originally Posted by PatLee

Another consideration might be having to pay property taxes annually on your Airstream? I remember hearing an ex-Californian complain about that. Perhaps another state would not tax the Airstream annually?

There are NO property taxes on Airstreams in California. You pay a vehicle registration fee every year.

[VaTravelers]

Originally Posted by nicksharpe

a thread like this can be concluded by stating "you get what you pay for".
You want cool and dry or get soaked by FPL? What you don't pay in income taxes you make up for in utilities (and other things). Prolly the same in Beautiful TN and NC!
The big problem with California is even with all the bitchin and moaning, y'all keep coming here, and its getting damn crowded even in the outer regions! Try to camp in Death Valley! Big Bear is like Miami Beach during high season.
LA and SD? fugedaboutit!
But, I'm still here in CA (A great place to be FROM)- bouncing from mountain top to mountain top, especially after my "winter in FL experiment" of last year (2016). You really cant go home again

Great state to visit. Not to be a resident if you care about your money. I am a native but decided to leave the state to preserve my wealth. Not just income tax but all the other taxes - gas etc. You are right, beautiful state, lots to see and do, and is the 4th most expensive state to live in the country. If you follow state politics, my bet is the legislature will find even more great ways to spend tax payers money.

[Adiredneck]

Kyet, I feel your pain. We considered Virginia as a retirement home because of its beauty. Than I discovered that they tax both military and gov't pensions, *and* outlandish personal property taxes. On the several counties we looked at, we would pay more in property tax on TV and Airstream than we pay in real property tax on our houses in Mississippi and New York combined (and NYS is no slouch when it comes to property tax!).

So, we'll just visit and camp in your beautiful state, but I'm not sending half my pension to Richmond!!!

[zapper]

Originally Posted by Mike91208

This comment about the CA fees is simply wrong. I have a 2011 Tundra. I went from $443/year and now it's down to $361. The fees DO come down as the vehicle ages.

I registered my Tundra vehicle at AAA in 2017, complete with commercial scale ticket as verification of the weight of the vehicle. I was told all PU trucks were considered commercial use whether used as such or not. (False assumption) As I understand it the CA PU licenses fees are based upon vehicle weight not value, as such AAA informed me that my license fees would NOT go down from year to year. But thank you for informing me that AAA may be incorrect and I may look forward to a piddley reduction from the outrageous, 2017 CA licenses fees next year. We'll see.

[3wd67rg]

I have lived in CA since I was a child, I have two sons still living here and my Landlord and Lady and sons have become my family, so I will keep my little grannyhouse with the incredibly low rent. Temperatures and weather, mountains, desert, oceans, culture, San Diego had it all. I am a service connected Veteran and my income is nontaxible. I will admit that our vehicle registrations are very high, as is the general all around cost of living.

My boyfriend Chris keeps his Texas residency because his Veterans Retirement Income IS taxable, and registration for his Jeep and the Airstream are very low cost. We live together here in San Diego, and visit Texas once a year for the Airstream to be inspected for its re-registration.

I suggest researching all the states to find one that gives you the best financial deal, like Chris you can still live here part of your year.