Quote from vhehn:
all states have time limits to establish residency for taxes that you must document. most are 50% or more time must be spent in that state.
you cant just buy a home in a low tax state and call it your residence.
Thanks for responding. I'm enjoying this opportunity to continue my research on this subject.
I'm pretty sure at least one of the tax-free states doesn't have any time limit to establish residency: Washington. That's the one I was considering using as a tax haven for numerous reasons, and have looked into that one more than the others. On the following site, the requirements are spelled out for establishing residency in WA, at least for purposes of government assistance. You'll notice #2 on the list of requirements states how one "does not need to live in the state for a specific period of time to be considered a resident."
http://www.dshs.wa.gov/manuals/eaz/sections/Residency.shtml
The Department of Revenue of Washington state spells out the state's requirements yet more thoroughly:
http://dor.wa.gov/content/contactus/con_residdef.aspx
As you can see, it is easy to become a resident of Washington, and there is no requirement of maintaining a physical presence there for any specific length of time. Note the site's use of the expression "any of the following," as opposed to "all of the following," suggesting that if any one of the criteria on the list are met, the full requirements of residency are satisfied. Admittedly, my only sources on this matter are government websites such as these. If they're misleading or I'm missing something, please let me know.
In any case, my real concern is how the Franchise Tax Board of California, the state where I spend most of my time currently, would feel about losing their handout. Maybe this topic ought to be turned around to address the question of how long one can spend in a given state WITHOUT being considered a resident.
