I have been a resident of Kalifornia for 69.5 years. We just bought a house in Bandon, Oregon. I live at both places but for now my head is on the CA pillow more than the OR pillow.

1 I registered a truck in OR and it is at that address most of the time-registration fees less
2 I bought a new car three weeks ago-no sales tax in OR and most of its miles will be logged in OR but it will be parked in CA more-going to register it in OR
3 Just registered plane in OR-will be building hangar in OR-no property tax-have to be kept out of CA at 0001 Jan 1st to stay away from CA property tax
4 Will be registering boat in OR as it will be in OR waters more than CA waters-same rule for boat as plane for property tax.
5 The big question is the validity of an OR drivers licence-I will be driving more in OR than CA as we are only 30 miles south of OR border. I will still vote in CA cus I will use CA pillow more.
6 Big factor is that when I sell ranch here in CA, if it is our primary residence then significant tax breaks can be had as far as capital gain is concerned.

Experts please advise. Do not worry Super Maule, I will not try this in Idaho (yet)

Tim

Tim, leave all the Greenie, tree hugger stuff back at the California ranch.

I'm not a lawyer, but I think we should support the states that support us.

I moved back to my origin area in 1994 when my Dad became ill. I had had three vehicles licensed in NM. I paid no personal property, no license fee, nothing and got a "Permanent" purple heart plate for leaving a little blood in Vietnam. When I moved to Missouri and asked for the purple heart plate, the lady said that will be $17.00 extra for the vanity plate. I had already paid personal property and license fee. I told her to give me a standard plate and that my purple heart was not vanity. I have never paid extra for a purple heart plate in Missouri or any other state. When my Mom goes to heaven, I will move back to NM.

During my entire legal career, from which I formally retired 12 days ago, I made a point of limiting my tax advice to "you need to discuss this with your accountant." Over the years, I took a number of continuing ed courses in tax, so that I would recognize red flags when I saw them. I see some red flags with your situation. So now that I'm just a poor retired recreational pilot, not licensed to practice law in any state and never qualified to give tax advice, my tax advice remains, "you need to discuss this with your accountant."

But let me add, you also have some significant legal issues as well, regarding residency and domicile. Your situation is not uncommon--lots of folks have homes here and there--but few give much thought to the legal implications. So you also need to visit with your attorney to make sure that you are taking the appropriate steps to do whatever you want to do for the future. It might not be a bad idea if you, your attorney, and your accountant all sit down in the same place and have a discussion, so that everyone is on the same page.

Cary

Having the boat, plane a couple of vehicles registered in OR is just fine. I have gotten good advice there. All an OR drivers licence gets me is not having to pay for out of state fishing licence and it is easier to buy guns in Oregon. As far as the fishing licence goes I have been told that if I have 6 months of power bills then I can get an in state fishing licence. I am not sure how that would work cus the fishing licence has your drivers licence number on it.

tim

Terry wrote:Tim, leave all the Greenie, tree hugger stuff back at the California ranch.

I will bet that in the county that I live in here in CA we have less tree hugger greenie magot infested hippies than you do in your county.

Tim

Experts please advise

Watch out for that Oregon State Income Tax and ff you ever move any rolling stock registered in Oregon to another state check on the Use tax the new state might hit you up for not having paid sales tax on it.

tcj wrote:

Experts please advise

Watch out for that Oregon State Income Tax and ff you ever move any rolling stock registered in Oregon to another state check on the Use tax the new state might hit you up for not having paid sales tax on it.

I am very familiar with the Use Tax that is charged in CA for out of state stuff. For airplanes it used to be that if it was out of state more than 90 out of 180 days it was exempt from use tax. Now it is a year out of state. I paid sales tax on my current plane and my boat. If I bring them back I do not have to pay a second time. Not so with the new car cus I did not pay the tax in the first place.

I cannot find a tongue in cheek smiley to be installed after the "experts please advise" .

Tim

Those are both state income tax states. Be careful or you'll owe in both states. The State Franchise Tax Board has all the time in the world and they truly are out to get you. I also complicates the hell out of your health insurance if you've got a company or multi employer plan.

California domicile rules include such terms as "intention to return" and "income derived within the state" etc. Oregon is similar. If I was in that position I would pick a state to make my domicile and register everything there. You are then a tourist in the other one.

I'm no lawyer (but I have had one appointed to me at no cost!), but I would think that you need to pick one or the other re: residency -- drivers license, taxes, etc. Maybe register a rig that is gonna stay in the other state there, otherwise pick one or the other.

I would be careful posting to public forums with any specificity. I got royally screwed by the Washington dept of revenue when I moved here. We bought a second house in WA, I was still living and working in Portland for 65% of my time, but as soon as my wife and I registered her car in wa they hit me with a "use fee" bill on the plane. Sales tax on a plane I had owned for 5 years. Tried to say because I posted to a regional website about moving, plus the car registration made me liable for the taxes. I fought with them for 4 months, as I was truly an OR resident, and they eventually reduced the late fee in a show of goodwill. The DOR in WA is a true mafia racket. I hope they file this under my name, I hate those people.

They troll regional forums looking for keywords that they can use to prove residency and you cannot win.

Rod

For now I think it best to register a few things in Oregon and keep residence in CA. That is the path of least resistance.

Tim

Years ago there was a bunch of people that lived in Oregon and worked in Dorris California. They would commute every day from Oregon their residence was there, the cars were registered there and the drivers licenses were there all in Oregon. The CHP pulled several of them over and The state asserted if they worked here they must register their cars and get California drivers licenses. I think the Oregonians won the battle, but in your case I don't think you would.

Pacific Power and Light is an Oregon and Washington company. They supply some power to nor cal including us. They sent some line trucks to Tule Lake CA for some line up keep and they got ticketed by the CHP (friend of mine) They did not have to have DL's but the trucks had to have CA plates on them.

I took a truck to Oregon to do a job up there. I was turned in and I had to get an OR licence on by pickup.

Tim

CA requires "dual registration" if you drive past the border by "x" miles for work.

It's not really a legal residence issue, but is rather a use tax issue. They let you be out of state for residency but still require their use tax to be paid. Their roads, their choice.

Line 5 pretty much shows your intention to have CA as your domicile. As others have said be careful what you post. Ask an accountant.
The laws are not always as straightforward as us non-legal types would like. Nor do they always make sense.

There was a court case at least 10 years ago where some guy in Los Angeles bought a vacation home in Nevada then proceeded to call Nevada his home. His case was pretty cut and dried. His cars were registered in California, his bank was in California, he worked in California. Needless to say the California Franchise Tax board won it's case and collected 3 years of back taxes plus interest and penalties.

California will still get it's share of Capital Gains, they tax your worldwide income.

Tim,

I hear North Dakota is nice . Typical Quartermaster.....can't figure out where he lives.

MTV

Cary,
congratulations on retirement!!!
More flying, less paper. Always a good thing.

mtv wrote:Tim,

I hear North Dakota is nice . Typical Quartermaster.....can't figure out where he lives.

MTV

We were so lost one time. SINS broken down, Could not risk radar, Too far north west for Loran Alpha. Loran Charlie put us about 20 miles inland. Did a single ping on fathometer to dry up the sweat on our for heads. Also got a couple of bearing from sonar to some shoals.

Finally it cleared enough to shoot three stars although two were pretty close to each other. The new fix put us about seven miles from our hand DR and ten from the Dead Reaconing Analyzer Indicator. I was QM of the watch when we decided that we needed the single ping so I was real happy to get the fix.

Tim

Tim

Being a Californian, your biggest concern probably is your federal capital gains tax when you sell your ranch. I think the rule is that it must have been your primary residence for 2 out of the last 5 years. You might want to check that to be sure. If you do have that residence requirement fulfilled, you will not have to pay any federal capital gains up to $250K if you are single or $500K capital gains if you are married.

Good luck

flyer