I have been a California resident for many years. I've paid state income tax the whole time, and had various homes in California. I'm retired; my income comes entirely from investments, many of them are California tax-free muni bonds. I vote in California, and I have some relatives in California, but nobody very close by. A year ago, I built a vacation home in Arizona; I purchased and registered a car in Arizona (I have a car in California too, and my driver's license is from California). Over the last year, I've found I'm spending more time in Arizona and less time in California. This year, it looks like I'll be in Arizona just over 6 months, California about 5 months, and neither state the remainder. I like Arizona, and I'd like to be considered a resident of Arizona. Doing that would also have have some tax benefits for me. So, I'm looking into what it would take to be considered an Arizona resident. And more importantly, what it would take NOT to be considered a California resident anymore. If I take out a driver's license in Arizona, register to vote in Arizona, consider Arizona my main home, and continue to live in Arizona more than half of each year, am I an Arizona resident? Will California (properly) decide that I am still a California resident? Would it take selling my California home to renounce California residency? Does selling the CA tax-free bonds help? How does one STOP being a resident of California while still owning and occasionally occupying a home in California? If I take steps to show that my intent is to consider Arizona my main place of residence, how high is the risk that I'll wind up with both states considering me a resident or part-year resident? That's certainly not the goal. All help appreciated.
- posted 13 years ago