Posted on 12/19/2020 5:01:17 AM PST by karpov
California’s Legislature is considering a wealth tax on residents, part-year residents, and any person who spends more than 60 days inside the state’s borders in a single year. Even those who move out of state would continue to be subject to the tax for a decade—a provision that calls to mind the Eagles’ famous “Hotel California” lyric: “You can check out any time you like, but you can never leave.”
The California Constitution probably allows a statewide wealth tax on residents, but any effort to create a tax capable of reaching across state borders is likely to run afoul of the U.S. Constitution. Taxing someone who spends only 60 days in the state in any single year—and extending that tax over an ensuing decade—would be something new under the sun.
Each year this tax net would gather up a new crop of taxpayers for the next decade. The range of people it proposes to ensnare is staggering: every student attending college in California, anyone having a major medical procedure at a California hospital and needing an extended in-state recovery period, and those who spend two months in California away from New York or London winters. Under California tax law, there is no distinction between a nonresident from Minnesota and a nonresident from Dubai.
Assembly Bill 2088 proposes calculating the wealth tax based on current world-wide net worth each Dec. 31. For part-year and temporary residents, the tax would be proportionate based on their number of days in California. The annual tax would be on current net worth and therefore would include wealth earned, inherited or obtained through gifts or estates long before and long after leaving the state.
(Excerpt) Read more at wsj.com ...
Many years ago, and for several years, the State of New Jersey was sending me tax bills for, I think, a wage tax. I lived full-time in Pennsylvania, but somehow a portion of my income was getting reported to New Jersey. I never answered any of it. Ignored it. And eventually it went away.
I think it might have had something to do with my parents owning a vacation home at the shore. I think they pulled my name off a list and assumed I was a part-time resident even though my name was not on any deed or mortgage. The New Jersey Tax Man is relentless.
Why stop at 10 years? Do they think it would somehow be more acceptable if people saw an end to the taxes?
In 10 years, they could simply increase it to 20 years. They could also reduce it from 60 days to 30 days if they thought they could get away from it.
The incentive is that the Supreme Court doesn’t want to rock the boat by doing their job.
“Taxed without Representation?”
I’m sure you could vote in California regardless where you actually live... if you were willing to vote for the approved candidate!
Go to Hell. Not everyone in California is liberal, or originally from there.
cant wait to see the court cases on this one. I live in California we are trying to kill are economy.
“A good friend from CA told me of that State chasing people that moved for taxes retroactively applied. If I recall correctly it was a property tax (could be wrong). Imagine that, you leave CA and a few years later receive an unexpected bill for tax that didnt exist when you were there.”
We escaped CA a couple years ago... retroactive taxation seems a tactic that could start a war. Much less what happened in Boston over tea...
Unconstitutional & it’s already been decided. Oregon tried to keep taxing PERS retirees if they left the state. Courts said no. Period.
Yep. Damn thievery!
Kali should just ask the East Germans how they built and maintained their wall and get it over with instead of piddling around with things like this.
States can only tax you for income received during your time in state or if you are a resident in a state. Most allow credits for taxes paid in other states.
Harry & Markle WILL owe California taxes. And a TON of them. That will require full disclosure. Hope Netflix has told him to hire a good tax attorney.
A few years ago California enacted a “claw back” tax on capital gains from income property. If one exchanged a rental property in California for one in another state (1031 exchange), California will tax you on the gains earned in California if and when that out of state property is sold. You are also required to file an “information” return with California every year to report the current status of the out of state property.
California’s Legislature is considering a wealth tax on out of state residents who call California and talk longer than two minutes.
The stick it to them state never at a loss for a tax.
Dear sir, we noticed you wrote the word California in a sentence. Please send just money or we will turn you over to collections
The British royal family uses something called the Crown Estate.
They both will try.
For those ready to bolt who have horses- I have a 5 ++ acre property for sale in N Nevada.
IF anything is taxable—it should ONLY be the $$$ earned in that state....not all your annual income.
Was that intentional?
For those who don’t know, California tried to tax pensions paid to people living in other states but who had earned them in California. This was eventually shot down in SCOTUS. But the California Franchise Tax Board is a voracious beast that demands to be fed.
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