SeeSALT Blog
Taxpayers intending to change their residency for California personal income tax purposes should be aware that intent alone is insufficient to establish new residency. Moreover, intent coupled with physical acts of starting to move or transition to another state is also insufficient to establish new residency. The California courts have held if one is a resident of California, that person cannot be in California for “a temporary or transitory purpose” until that person’s acts as well as his or her intent show that he or she has moved out of California. That one may intend to move from California at some time in the future does not make that person someone who is in California for a temporary or transitory purpose. One is a resident for tax purposes until there are sufficient indicia of an actual change of such residence.
(The remainder of this article can be accessed in the June 2006 edition of Lexis California Tax Practice Insights.)