How does a state enforce an “exit tax”?
Apparently California is in charge of interstate commerce, not the federal government. They must have updated the Constitution when no one was looking.
Technically, it could be argued as unconstitutional.
When you exit make sure not to leave any assets in the state.
With walls, guards and barbed wire. East Germany was a good example for them to follow.
Sounds completely illegal, but then that doesn't seem to bother the Democrats (just ask Trump about Letitia James and Judge Arthur Engoron).
Under such a law, if you sell a piece of property, it cannot be transferred to the new owner until it has been established that your new tax residency is still in California. If it is out of state, a tax will be levied on assets owned or held in California.
“… How does a state enforce an “exit tax”?…”
I do not know. Hawaii has a similar scheme in place. When I relocated from Hawaii to Florida I was informed that I would owe income tax to Hawaii as long I maintained ANY services or banking in the state. My phone service and of course banking was in Hawaii until I could establish myself in Florida. That took several months to find employment, etc.
When the tax notice arrived from Honolulu, I circular filed it. That 12 years ago. Haven’t heard a word since, but I’m still on the voter rolls there.
They send you a bill.
I got one from CA a year after I left.
It was easier to pay than fly back to CA to fight it.
I have heard that NJ has a tax on the sale of property that is refunded if you buy more property IN the state and not refunded if you buy property outside the state.
“How does a state enforce an “exit tax”?”
assuming that all in-state California assets have been disposed of and/or transferred to other states prior to exiting, there’s no enforcement mechanism possible ...
presumably though, the California ex-patriots themselves have lost their California visitation privileges ...
nonetheless, it’s nice that California has announced their intent for an “exit” tax, so those who wish to flee can properly prepare for their exit ...
still, one would think an “exit” tax would be unconstitutional under the commerce clause, though most of those contemplating fleeing would probably rather just flee instead of becoming embroiled in a VERY lengthy and VERY expensive legal journey ...
“How does a state enforce an “exit tax”?”
I would presume in the same manner that the IRS attaches liens against someone’s property to secure payment of “unpaid taxes”. It doesn’t have to be legal, remember... if it’s a Democrat or Democrats doing it.
This will get overturned big time.