Armed Polite Society
Main Forums => Politics => Topic started by: Ben on September 28, 2020, 03:59:45 PM
-
This is an article on another billionaire fleeing CA because of their tax increases. I came across this in the article:
Other wealthy Californians have already announced their departures from the Golden State after legislators last month proposed a 0.4% wealth tax on anyone who has a net worth of $30 million or more. The tax would also apply to former residents for 10 years before phasing out completely.
What am I missing? How is this legal? Once the tax year has passed, as long as you no longer have any tax generating interests in a state, how can that state continue to tax you for TEN additional years? Maybe the story is leaving something out. Otherwise this should be a pretty quick court case.
https://www.foxbusiness.com/markets/billionaire-jeffrey-grundlach-hints-fleeing-california
-
I dunno. I've never understood it. VA does something similar where they tax folks that are working and getting paid overseas if their last residence was in VA before they left. A bunch of people I know in the State Department dodge this by claiming to have moved to FL or NC for a week before moving to outer bumfuck.
-
I don't see it lasting very long under legal challenge. The memory banks give partial recollection of legal precedent requiring that you must reside/work/act within a taxing unit's jurisdiction for them to have taxation authorities. Only part of a recollection, though, and not sure from where or when, so YMMV.
Brad
-
A recent article about the concept...
https://www.forbes.com/sites/taxnotes/2020/07/14/no-love-for-retroactive-tax-legislation/#2e734ac23278
And, an article about just how aggressive California is in coming after people for taxes...
https://www.forbes.com/sites/robertwood/2019/10/22/now-california-can-assess-taxes-no-matter-where-you-livereally/#4654b4853e7f
But, apparently, some states do have laws that allow for retroactive taxation.
-
Twenty years ago I heard where California wanted to tax people who left the state after retirement, on their retirement income, even though they then lived in a different state. The story I heard was that the feds shot it down.