So for any of you guys that have ever been in a position to consider changing your state of residence, what did you use to help make your decision? What factors were present to drive your decision to change or leave it as is??

I know this probably mainly applies to military because who else can work in another state and maintain residency somewhere else...but maybe not. IDK, that's why I'm asking the question.

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If it's relevant, I'm a NC resident (and very loyal...born and raised) currently living in IL with all my vehicles registered in CA. Yes, I pay NC state taxes.

What's driving this question...I just discovered because I don't physically live in CA, I can leave my registration there but I can no longer take advantage of the non-resident benefits on my vehicle registration fees, which BTW is a smokin deal considering CA.

I have not checked on the cost of vehicle registration for IL or NC to see which would be cheaper, but I do know that if I change my residency to IL, I don't have to pay state taxes.

Anyways, just looking for thoughts and what other factors to consider besides vehicle registration, taxes, and any other items? Thanks guys.

 

I never bothered to change my state (Oregon) of residency because I get all the money I pay in state taxes during the year back because of out of state residency. I know a lot of guys from California have switched to Texas, I think Texas doesn't have to pay state taxes (they get you with all the sales tax.) Before you make the decision you'd have to weigh the pros and cons of the states you're considering.

 

No, no income tax in Texas. Just the sales tax and vehicle registration fee.

 

If you change your residency to IL, you don't pay state income tax on military wages, but you will have to pay it on any other income in IL, as will your spouse.

To register your vehicles in IL, there is a $95 one-time title transfer fee and plates for cars and trucks under 8000# are $99 a year. If you are in the CHI or STL metro areas, you will have emissions testing, no charge, done by a state-operated inspection station. There are no excise taxes or any other annual fees related to your vehicles, unless your municipality has personal property tax and/or "city stickers" which are an annual vehicle license fee. It's not like CA where they soak you to register newer vehicles - 99 bucks a year for anything.

You can still keep your legal residence in NC, but register your vehicles in IL. That's what I'd probably do unless the NC taxes are hurting you. I'd completely divorce yourself from CA. There's a difference between "residency" and "home of record".

 

One thing that I thought of after my last post while driving down the road. If you decide to register your vehicle in IL check to make sure you won't have to change your state of licensing or insurance. When I got back from Korea in '07 I was going to register my Jimmy in Michigan (Mother's address) because I planned on moving back when I separated from the Army. They wouldn't let me register it because my license was out of California and my Insurance was based out of Oklahoma, they wanted two out of three to be Michigan. Texas and California on the other hand didn't make a big deal about it I think it had to do with my insurance coverage being enough to meet the required limit of liability. At one point I had an Oregon license in Cali with OK insurance and Cali plates.

If you are military I would look into USAA for insurance, all I had to do was tell them that my wife's van was registered in Michigan still and they sent me insurance cards for both Michigan and Texas. Their rates are pretty good too.

 

Technically if your residency is NC and you're living in IL you can not have your vehicles registered in CA anyway. You need to chose NC or IL for your registrations. I know you can do it, we did, lots of people do and get by with it but legally you are only supposed to have 2 states...your state of residence and the state you are living in. All of your registrations, drivers licenses and such should be in those two states. You do not have to change your residency to register your vehicles in IL. The biggest factor in deciding to change your residency is state income tax, is it more attractive in IL?

 

My truck is registered in IL but I live in WI. Worst part about that is renewing IL plates is 25 bucks more expensive, and having to go back there yearly to emissions test.

 

I have no doubts you're correct on that, and wouldn't care except for better than average odds I'll be back in a few years. Also, how would anyone (a cop for example pulling you over) ever know otherwise when I present him a CA drivers license in a CA vehicle. He'd have nothing to doubt. My only loophole (and not sure about it) is I still own a home in CA.


Yep, knew that one. I just need to find out if it's more economical to leave it as Cali (probably not) or swap to IL or NC.

That is probably my biggest question out of this whole thread...making sure I'm not missing other factors besides state taxes. Yes, IL is more attractive than NC...If I swap to IL, I don't pay any state taxes...even living in IL.

 

Why is it $25 more?? When I first moved to CA, I still had my vehicle registered in NC. NC has an annual inspection, but the DMV gave me a waiver every year. IL won't do that for you?

 

In AZ if you live more than 6 months in the state and/or work there (students and seasonal jobs are excepted...I think), then you have to register in AZ. When I moved back to AZ from Texas (I went to college there but lived there all year), I had Texas plates that were only a few months old and I was too cheap (and broke) to get AZ plates until the TX plates expired. The cabinet shop I was working at the time got robbed overnight and one of the guys I was working with said he saw the investigating officer writing down my plate number. I took off work early and got an AZ DL and plates that afternoon.

 

Lady, that doesn't apply to military with a home of record out of state. That falls under the federal Soldiers and Sailors Relief Act. All Galaxy has to do is have everything either at his home of record or where he is based. I believe for him to keep CA plates and DL, he has to change his home of record to CA. With a NC home of record and IL basing, everything must be in one of those 2 states, regardless of his home ownership.

 

Ooopsie. I missed the military part. Sorry.

 

The only way a cop would know is if your IL address is on your license or you have to present something with your IL address on it, then he would question why that is and things would roll downhill. Most cops are pretty ignorant (no offense to any police officers on the forum) of the rules regarding military members and licensing laws. My husband got pulled over a few times in his career and they always gave him a hard time about his drivers license being expired...he had a Texas license and it used to be (not sure if it still is) that as long as you were active duty, your license did not expire regardless of the date on it. The state of Texas gave him a little card to carry with his license saying it was valid. The cops didn't know that and even when he showed them the card, they still persisted in giving him crap.

I believe, even with a house in CA, you are still only allowed to use 2 states. If you changed your state of residency to CA that would allow you to keep your vehicles registered there legally. BUT...you can't change your state of residency to any state except the one you are currently living in.

Outside of the cost of vehicle registration and taxes, there really isn't much else to consider. Changing your residency does not mean you change your birthplace, you can still be a proud North Carolinian. Your new state shows up in a tiny box on your LES and you don't have to show it to a soul!

 

 

Rose, couldn't he change his home of record to CA even though he's in IL - because he DOES own property there?