Hotel California -- 'You Can Check In Any Time You Like, But You Can Never Leave"

[Snarkhund]

So they're after the multi-millionaire tax cheats, like the masters of the universe in Silicon Valley, Zuckerberg et. al., the Hollywood megastars, the sports superstars, etc.

Well... 30 mil is a pretty low bar for those folks. It would subject the majority of their assets to wealth taxation. Rich people don't get rich by writing checks. If I was in that camp I would consider fleeing before the wealth tax became law and that appears to be happening.

And its "worldwide" assets. Everything. Even options to purchase securities that have not been exercised would have to have a valuation assigned to them. Its pretty crazy, even for California.

 

[Tsing Tao]

Hey... it's California, baby!



Q: How long will the state presume that I am still a resident after I leave?
A: You are generally presumed to be a California resident for a period of 18 months after you leave the state.

https://moskowitzllp.com/leaving-ca...hind-a-little-qa-on-california-exit-planning/

Yeah, but they have to have California income to be taxed. The state of California has absolutely no idea what income you make in Texas or Arizona or any other state because employers only report income to the state where the employee is domiciled. So unless California receives income from an employer regarding an employee, no income tax can be owed or paid.

 

[Tsing Tao]

Its true Tsing. Its a tax on total assets held worldwide not just in California and it extends 10 years beyond the time you end your California residency. Its not an income tax its a wealth tax.

It appears to only trigger for total assets exceeding 30 million so in my case it would not apply. There are people who post in the forum who have claimed to have that much though I certainly have my doubts. It would affect my family but not me personally.

"The proposed legislation would place an annual tax of 0.4% on all net worth above $30 million, affecting 30,400 Californians. Supporters of the wealth tax say it's expected to raise about $7.5 billion annually."

"The threat of a wealth tax is spurring conversation among California’s wealthy and their financial advisors on whether they should move now. Tax supporters seem to have anticipated this eventuality, as the proposed wealth tax carries an unusual feature: The state could assess it for 10 years after someone leaves California."

The wealth tax is "being considered" and has not become law yet buts its already having an effect.

This is not an income tax. It is a an attempt to prevent state domicile games. This is different.

 

[Tsing Tao]

So they're after the multi-millionaire tax cheats, like the masters of the universe in Silicon Valley, Zuckerberg et. al., the Hollywood megastars, the sports superstars, etc.

Exactly. Someone who is trying to escape California residency by purchasing a property outside of California and claiming they live there most of the year and thus are not California residents. NY and NJ see a lot of this with Florida.