Military and Car registration: does car registration affect your residency status?

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DrMetal

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If you live in a state, own property in it, and pay state income taxes . . . that's enough to declare you a resident of that state, right?

What if your vehicle is registered in a different state? Does that matter?

For instance: I live in CA, own a house there, and happily pay CA state taxes, and I've been a CA resident my whole life. Have a CA driver's license. But my car is registered in Virginia (that's where I bought it). Does my Virginia DMV registration impact my CA residency, in any way? (I want to be recognized as a CA resident . . .kids college tuitions on the horizon).

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If you live in a state, own property in it, and pay state income taxes . . . that's enough to declare you a resident of that state, right?

What if your vehicle is registered in a different state? Does that matter?

For instance: I live in CA, own a house there, and happily pay CA state taxes, and I've been a CA resident my whole life. Have a CA driver's license. But my car is registered in Virginia (that's where I bought it). Does my Virginia DMV registration impact my CA residency, in any way? (I want to be recognized as a CA resident . . .kids college tuitions on the horizon).
Yes.


Not what you asked but my recollection is CA requires residents to register their vehicles in CA.
 
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So, interesting from: https://www.ftb.ca.gov/forms/2015/15_1031.pdf

A resident is any individual who meets any of the following:•Present in California for other than a temporary or transitory purpose .•Domiciled in California, but outside California for a temporary or transitory purpose . (See Section L, Meaning of Domicile, on page 9)

and

Guidelines for Determining ResidencyThe underlying theory of residency is that you area resident of the place where you have the closest connections .The following list shows some of the factors you can use to help determine your residency status . Since your residence is usually the place where you have the closest ties, you should compare your ties to California with your ties elsewhere . In using these factors, it is the strength of your ties, not just the number of ties, that determines your residency . This is only a partial list of the factors to consider . No one factor is determinative . Consider all the facts of your particular situation to determine your residency status .Factors to consider are as follows:•Amount of time you spend in California versus amount of time you spend outside California .•Location of your spouse/RDP and children .•Location of your principal residence .• Statethatissuedyourdriver’slicense.•State where your vehicles are registered .•State where you maintain your professional licenses .•State where you are registered to vote .•Location of the banks where you maintain accounts .•The origination point of your financial transactions .•Location of your medical professionals and other healthcare providers (doctors, dentists etc .), accountants, and attorneys .•Location of your social ties, such as your place of worship, professional associations, or social and country clubs of which you are a member .•Location of your real property and investments .•Permanence of your work assignments in California

It seems like if you just live in CA and are present (certainly if you pay taxes, own a primary home), that's sufficient to establish residency. It looks like you can register your car in whatever state.
 
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No, you can register your car where you reside. Sales tax on the car is a bit tricky though. I always had a home of record with no income tax.
 
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No, you can register your car where you reside. Sales tax on the car is a bit tricky though. I always had a home of record with no income tax.

Well, what I'm trying to figure out is: Does registering your car in a one state negate your residency status in a a different state? In my example: If everything else about me sais that I'm a CA resident (I live in CA, I have CA DMV drivers license, I'm registered to vote there, I own a primary home in CA, I pay CA state income tax) . . . . would having a car registered in Virginia call into question my CA residency? (I would very much keep my cars registered in VA, much cheaper). I think the answer is 'no', car registration is not that important.
 
Well, what I'm trying to figure out is: Does registering your car in a one state negate your residency status in a a different state? In my example: If everything else about me sais that I'm a CA resident (I live in CA, I have CA DMV drivers license, I'm registered to vote there, I own a primary home in CA, I pay CA state income tax) . . . . would having a car registered in Virginia call into question my CA residency? (I would very much keep my cars registered in VA, much cheaper). I think the answer is 'no', car registration is not that important.
No, while active duty your home of record will never change unless you formally have it changed. You will continue to pay taxes and always be a resident of your home of record state even if you own property, register vehicles, etc., elsewhere.

Different story when leaving active duty. For you no big deal since you are OK with maintaining a high-tax state as home of record. For those of us who have very low-tax home of records, when we get out we will need to prove why we should continue to pay taxes in that state when we have properties and cars registered elsewhere. Long story short, once we are off active duty we then become residents of the state in which we occupy most often according to federal law.
 
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Well, what I'm trying to figure out is: Does registering your car in a one state negate your residency status in a a different state? In my example: If everything else about me sais that I'm a CA resident (I live in CA, I have CA DMV drivers license, I'm registered to vote there, I own a primary home in CA, I pay CA state income tax) . . . . would having a car registered in Virginia call into question my CA residency? (I would very much keep my cars registered in VA, much cheaper). I think the answer is 'no', car registration is not that important.
You're correct, not a problem.

Also, for purposes of in-state tuition for your dependents at public universities, if you have orders to that state, you're good. The Higher Education Opportunity Act of 2008 says so. End of story - nothing else matters.


I'm a CA resident, currently stationed in Virginia. Our cars are registered in VA in my name only. Best of both worlds - I pay no state income tax on the .mil pay, and I'm exempt from the VA property tax on the cars because I'm here on order. (If the cars were jointly registered between me and my wife, we'd pay 1/2 the state property tax.)

I've bounced between CA and VA since 2006. (One geo-bach year in NC for fellowship but family stayed across the border in VA so nothing changed.) For a long time we owned houses in both CA and VA. A couple years ago we sold the house in CA when we decided the long distance landlord thing was more trouble than it's worth.


You can arbitrarily change your state of residence in DFAS ... I'm not aware of anyone who's ever been challenged on that or audited, but it's probably wise to have SOME objective evidence of your intent to someday return to that state. Having property, or a drivers license, or car registration, or voter registration there is ideal. But lots of people exploit the intent loophole and say "someday I'm gonna live in Florida/Texas/whatever" ... intent is all the law really requires. And who could prove lack of intent?

All the years and times I flipped my official residency between CA and VA as the Navy moved us back and forth, we owned houses in both states, and I had evidence of intent to return to whichever state. But I have never once been asked to provide evidence of anything.

Once per year the VA city I live in asks for a copy of my LES showing my CA residency to exempt me from personal property taxes.
 
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No, while active duty your home of record will never change unless you formally have it changed. You will continue to pay taxes and always be a resident of your home of record state even if you own property, register vehicles, etc., elsewhere.

Different story when leaving active duty. For you no big deal since you are OK with maintaining a high-tax state as home of record. For those of us who have very low-tax home of records, when we get out we will need to prove why we should continue to pay taxes in that state when we have properties and cars registered elsewhere. Long story short, once we are off active duty we then become residents of the state in which we occupy most often according to federal law.

Home of record and residency (more correctly referred to as domicile, in a legal sense) are not interchangeable.

Home of record is a military-specific term, used to indicate your domicile at the time you entered active duty. It is typically relevant only for determing how much the military will pay to move you when you separate or retire. For officers, it is virtually impossible to change your home of record, unless you have a break in service.

Domicile is a legal term that indicates where you primarily live. For active duty personnel, this is a hypothetical concern, because it's actually just an indicator of where you intend to reside after your active duty service. It is extraordinarily difficult to gauge intent legally, which is why secondary indicators are used, to wit, where you pay state taxes, where you own property, from where you have a driver's license, where your cars are registered, where your last will and testament is to be executed, or where you have a medical license. The single biggest factor is probably where you vote.

But it's a continuum. So, to answer the OP's question - no, registering your cars in one state will not sway anyone if the preponderance of evidence otherwise points to you being domiciled in a second state.

There is not a federal law that dictates the specifics of domicile. There is just federal law providing relief to military personnel from the particulars of each state (originally the Soldiers' and Sailors' Civial Relief Act and its subsequent iterations) based upon their presence in the state for the sole purpose of military service. Servicemembers are free to change their domicile as they see fit, provided that they have the documentation to back it up. All it takes is a call/visit to the finance office.

That said, all of this is almost entirely irrelevant. As far as I can discern, the only reason why it would become relevant is if state A comes after you for unpaid taxes while you claimed to be domiciled in state B. That's a losing legal strategy, and not worth any state revenue agency's time.
 
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If you live in a state, own property in it, and pay state income taxes . . . that's enough to declare you a resident of that state, right?

What if your vehicle is registered in a different state? Does that matter?

For instance: I live in CA, own a house there, and happily pay CA state taxes, and I've been a CA resident my whole life. Have a CA driver's license. But my car is registered in Virginia (that's where I bought it). Does my Virginia DMV registration impact my CA residency, in any way? (I want to be recognized as a CA resident . . .kids college tuitions on the horizon).

To basically duplicate what everyone has said, with a personal example, that should be fine.

My legal residence was where I entered the military on active duty. The state had income tax, but it did not tax military income. Therefore, there was no reason to ever change it. I voted and my driver's license was from that state.

However, that state also required that vehicles be inspected every year. Not too bad early on, when I was assigned one state away and we just had one car. (Residency). Huge hassle when we lived 20 hours away and had three vehicles.

So I would register the vehicle in the state we were living, but had driver's license, voter registration, etc. in my "home" state. No problem.

When my kids were older, they were still legal residents of my "home state", but got their driver's license where we were living. No problem.

As long as you are active duty military, that is not a problem. However, you will have to fix that immediately on leaving active duty. California, in particular, is ferocious when it comes to requiring residents to have state licenses, with little grace period, i.e. days.
 
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The trick was and is to get stationed in a state that has no income tax. The Navy has bases in Washington, Tennessee, Nevada, Florida, and Texas. If you ever have orders there head to PSD and change your LES to said state. It will save you thousands and thousands if you do a career. Disregard if you're getting out.
 
If you live in a state, own property in it, and pay state income taxes . . . that's enough to declare you a resident of that state, right?

What if your vehicle is registered in a different state? Does that matter?

For instance: I live in CA, own a house there, and happily pay CA state taxes, and I've been a CA resident my whole life. Have a CA driver's license. But my car is registered in Virginia (that's where I bought it). Does my Virginia DMV registration impact my CA residency, in any way? (I want to be recognized as a CA resident . . .kids college tuitions on the horizon).
Or not on the horizon. Importantly, make sure you check out Plan B:
 
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Or not on the horizon. Importantly, make sure you check out Plan B:

Yeah that is pretty sweet, I think Plan B would be most relevant:
The child of a Veteran who has a service-connected disability, or had a service-connected disability at the time of death, or died of service-related causes is eligible. The child's annual income, which includes the child's adjusted gross income, plus the value of support provided by a parent, may not exceed the annual income limit. The current academic year entitlement is based upon the previous calendar year's

What do you they mean by "value of support"? Obviously I'm still going to be supporting my teenage kid.

"income limit for otherwise eligible students under Plan B for the school academic year 2018-19 is $12,752. Income limit for the upcoming academic year 2019-20 is $13,064"

My kid's not making anywhere near this! But if you count 'my support', he certainly could be. Thoughts?
 
I’m not entirely sure how they know how much financial support you’re providing, but I’d recommend backpacking through Europe rather than a summer job!
 
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