[KevinB]

You might it you live in a high tax state and need to establish residency in a low tax state before claiming your winnings.

I'm pretty sure you would be taxed based on the state of residency at the time the ticket was purchased rather than when it was redeemed.

[xp38]

If a Canadian ever won one of these they could eventually claim the whole prize.tax free. There would be an initial withholding tax but it could be reclaimed once the tax return for the year is filed due to the tax treaty between Canada and the US. In this case the taxes would be in the hundred million and up range that would reclaimed. For a small fee I would be willing to be the proxy winner from Canada . :)

[Pontiac]

I'm pretty sure you would be taxed based on the state of residency at the time the ticket was purchased rather than when it was redeemed.

Yes, it appears you are right.

I read the tax-free state trick years ago. But it only makes sense that the states would fill that loop hole soon enough.