California
Leaving California? You may still have to pay taxes
Californians who move out may still face tax
People who left California may still have to pay California taxes.
LOS ANGELES – Ditching the Golden State for another U.S. state? You’re not alone.
A study conducted by the U.S. Census Bureau revealed tens of thousands of Californians sought life elsewhere. Some reasons why people are leaving California include: high cost of living, lack of job opportunities, increasing tax burdens, and regulations.
Overall, 75,423 Californians left in 2023. Many residents are moving to other parts of the country for better opportunities, cheaper homes, and different laws.
But before you pack your bags and set your sights on a new beginning, don’t forget there are measures you need to take – otherwise, you’ll still have to pay those notorious California taxes.
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California has nine state income tax rates, ranging from 1% to 12.3%. Your tax rate and tax bracket depend on your taxable income and filing status.
California’s Franchise Tax Board has the ability to conduct residency audits and is responsible for monitoring the fine line between residents and non-residents. The FTB has the right to investigate how and when you left.
When it comes to California state taxes, there are three residency statuses: resident, part-year resident and nonresident. The FTB determines what portion of your income the state will tax. According to state law, you are presumed to be a California resident if you are in California for more than nine months.
SUGGESTED: Here’s how many people moved out of California in 2023
The IRS has the ability to audit 3 or 6 years, but in California – that time frame expands to essentially, forever.
California uses several factors to determine your residency, like the amount of time you spent in the Golden State versus outside. Other factors the FTB considers include:
- The location of the taxpayer’s spouse and children;
- The location of the taxpayer’s principal residence;
- Where the taxpayer was issued a driver’s license;
- Where the taxpayer’s vehicles are registered;
- Where the taxpayer maintains professional licenses;
- Where the taxpayer is registered to vote;
- The locations of banks where the taxpayer maintains accounts;
- The locations of the taxpayer’s doctors, dentists, accountants and attorneys;
- The locations of church, temple or mosque, professional associations, and social and country clubs of which the taxpayer is a member;
- The locations of the taxpayer’s real property and investments;
- The permanence of the taxpayer’s work assignments in California; and
- The location of the taxpayer’s social ties. FTB Pub. 1031, Guidelines for Determining Resident Status (2010).
But the biggest factor of all, it seems, is your physical presence. Again, California presumes you are a resident if you spend more than 9 months in the state.
If you spend 6 months or less, you may qualify as a “seasonal visitor,” but that’s only if you don’t work while you are in the state, and meet other criteria.
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Even part-year residents are still taxed. You pay tax on “all worldwide income received while you are a California resident” and “income from California sources while you were a nonresident,” according to the FTB.
In order to avoid paying taxes, you must prove you have left California – but that means more than just buying a home in another state. You must prove you have completely severed your ties to the Golden State and that you have permanent connections to another state.
And even if you do that, you may still owe taxes based on other factors – for example, if your spouse still lives in California, expect to pay up as community property rules in California treat half your income as half of your spouse’s.
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If you’re a California resident but looking to chuck that and settle elsewhere, proceed with care and remember to take precautions. For example – getting a new state driver’s license and surrendering your old California one, moving and registering your car in your new state, and registering to vote in your new state while canceling your old California voter registration. You can learn more on the FTB’s website.
A study conducted by the U.S. Census Bureau indicates the top 5 states former Californians moved to were Texas, Arizona, Florida, Washington and Nevada. Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming all do not impose state income taxes.
California
California bill to block registered sex offenders from local office rejected by Senate committee
FRESNO, Calif. (KFSN) — California bill aimed at preventing registered sex offenders from holding local elected office was halted Tuesday after a Senate committee declined to advance the measure without changes opposed by its author.
Assembly Bill 2753, introduced by Assemblywoman Esmeralda Soria in February, would have prohibited anyone who is or has been required to register as a sex offender from running for local elective office.
“This issue is critical. We have heard loud and clear from the community that we must do something,” Soria said.
The proposal came to a stop in the Senate Elections Committee, where lawmakers argued the bill’s restrictions were too broad.
California’s sex offender registration system is divided into three tiers. Tier 1 offenders are generally required to register for 10 years, Tier 2 offenders for 20 years and Tier 3 offenders for life.
According to Soria, committee members proposed limiting the bill to Tier 3 offenders. She rejected those amendments, arguing that the legislation should apply more broadly.
“For this not to be the law today, where we’re banning people that have committed some of the most horrific crimes against children, against other people, you know, and we have survivors out there, I think it’s a disservice,” Soria said.
The bill had attracted significant support before reaching the Senate. It was backed by the Fresno City Council and passed the Assembly floor in April.
Fresno City Council President Nelson Esparza traveled to Sacramento to testify in favor of the measure and said he was disappointed by the outcome.
“I call it really a gut punch for our community, and what we had experienced here, and sort of the upheaval… I don’t think we want that to happen again here at Fresno,” Esparza said.
Esparza referenced controversy earlier this year involving registered sex offender Rene Campos, who sought a seat on the Fresno City Council but ultimately did not qualify for the ballot.
Opponents of the bill argued that candidacies should be decided by voters rather than restricted by law.
“It should be a decision made by the voters, so a person should not be barred from running for office and let the voters make the decision that makes the most sense for them,” said civil rights attorney Janice Bellucci.
With the committee declining to move the bill forward under its current language, efforts to enact the proposed restrictions have stalled for now.
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California
Billionaire tax measure heads to California’s November ballot, with Kern County watching
BAKERSFIELD, Calif. (KBAK/KBFX) California voters will face a high-profile “billionaire tax” measure on the November ballot, a proposal supporters say would raise new revenue, but critics warn could push some of the state’s wealthiest residents to leave.
If passed, the measure would impose a one-time 5% tax on California billionaires living in the state as of Jan. 1, 2026.
Tal Eslick, owner of Vista Consulting, said, “I think there is this effort, especially on the part of progressive state leaders, to somehow, you know, go after billionaires or maybe even the trillionaires that may exist in the future.”
Billionaire tax measure heads to California’s November ballot, with Kern County watching (AP Photo/Jeff Chiu, File)
Political analysts say a proposal like this could encourage some of California’s wealthiest residents to relocate, potentially taking investment and business activity with them.
Eslick said, “And for that matter, they can come back occasionally to visit and do a little bit of business, but live in a state that is a little more accommodating for them from a tax standpoint.”
Questions have also been raised about what the impact could be for Kern County if billionaires leave the state.
Sherod Waite, CEO of Moneywise Guys, said, “It’s questionable how much revenue would actually be generated from the tax and how much revenue would be lost from those people exiting the state. It’s questionable. It’s a gamble.”
Waite said billionaires leaving could reduce state revenue that could be used in Kern County.
Billionaire tax measure heads to California’s November ballot, with Kern County watching (AP Photo/Jeff Chiu, File)
“Think of all the support services that the state offers to the entire state, including us here in Kern County, that are paid for by tax dollars,” he said.
Gov. Gavin Newsom has been outspokenly against a state wealth tax and is instead proposing a national tax policy that would tax anyone with a net worth of $100 million.
Newsom said, “It’s time for a national billionaire’s tax and a new social contract. Just think of this, just ten percent of people own 2/3’s of the nation’s wealth.”
Eslick said Newsom’s position can be difficult to square.
“It’s a naturally confusing sort of position to be opposed to the tax in California but be supportive of it at a national level. But I think that’s him walking a treacherous political road,” he said.
Billionaire tax measure heads to California’s November ballot, with Kern County watching (AP Photo/Jae C. Hong, File)
In a statement regarding the measure, Assemblyman Stan Ellis said in part, “This would hurt Kern’s energy, Agriculture, manufacturing, and working families through lost investment, fewer jobs and unstable state funding.”
California
Southern California residents say HOA made them take down American flags
WASHINGTON (TNND) — Residents in a neighborhood in Southern California said that their homeowners association has threatened to fine them if they don’t take down the American flags displayed outside their homes.
Amy and Chris Cooke and their neighbor Terri Collins live in San Marcos, which is located in San Diego County.
They said that they could potentially face a $100 fine if they keep the flags displayed outside their homes, according to the Daily Wire.
“I’m not taking my flag down,” Collins said. “They can fine me, $100, $200, $1,000, I’m not paying it.”
Collins said that the neighborhood is very patriotic because it is located close to the former Miramar Navy Air Station.
She said that “all the Top Gun pilots lived here.”
The neighbors said that ever since President Donald Trump won the 2024 election, the HOA has enforced the rule about flags.
“Once the members allow use of a common property by an owner to express what is essentially a political or affiliative view in a flag, other owners will want to do the same and the common area will degrade,” a letter from the HOA reads.
Homeowners were told that flags displayed in “exclusive use” areas like backyards.
An HOA attorney told the Daily Wire HOAs “count on the fact that homeowners don’t know better and might be scared.”
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“I would tell these people to stand firm and under no circumstances should they remove that flag,” he told the outlet.
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