State Residency During Residency

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surg4lifee

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I will be moving to another state soon to start residency and had some questions about state residency, vehicle registration, driver's license etc. So let's say I live in State A and will be doing residency in State B.

I still own a home in State A and had my vehicle just registered, plated, inspected etc. in that same state. I'm moving to State B and they require me to get my car registered and get a new driver's license in State B within 30 days. I would prefer to keep my old driver's license since I still own a home in that state and consider it my home, will definitely be going back after residency and since I just paid for my vehicle registration I would rather not pay another hefty sum to get it registered in another state. My car insurance carrier said that I would be covered in this new state so that's not an issue. My house is jointly owned by myself and my fiance but my car is actually owned by my fiance who will still lives in State A.

So this is where the debate whether residents are employees or students in training comes into play. If I'm a student then I will be exempt from having to re-register my car and get a new driver's license in State B but if I'm considered an employee then I would be considered an resident of that state. Also there's the issue of my house which I still own in State A.
Also since I pay state/property taxes for my home in State A do I file in that state or State B where I work?


It is a bit complicated so if anybody has any insight I would really appreciate it.

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Technically you should change everything to the state where the car is. But if you receive mail and get your car inspected in your original state you should be able to keep things as they are. In some cities like NYC police may note out of state cars that are parked and make a report.
 
I am no expert in this area, but I believe that you usually are required to register your car in the state that it spends the most time. You may want to consider State A your home, but if you're spending more than 1/2 the year in State B, then (I think) most would consider that your home. I expect each state will have rules / laws about this, so you'll need to research it.

The consequences of not registering your car correctly can be large. As mentioned, State B may get quite upset if they discover it and you might have to pay some sort of fine. More importantly, your car insurance may not be valid. Rates are usually set based upon where the car is garaged. If you pay a lower rate in State A, then have a claim in State B, your carrier can deny any payment on the grounds of fraud on your part.
 
If you intend to continue to claim state A for your residency, then you will need to file state tax returns in both states. One state, usually the one where you claim to be a resident (in this case, state A), will give you a credit for the taxes withheld by your employer and paid by you to state B.

Unless you are in an exempted status (student, active duty military), then my understanding of the law is that you are supposed to establish domicile (the legal term) in state B. I am fairly certain that residents are not considered students in this context.

In all likelihood, if you keep filing tax returns, registering your vehicles, voting, etc., in state A, no one from state B will ever figure it out or care. It also helps that domicile is a nebulous concept legally, since it attempts to measure intent. It's a risk though, because if anyone (the DMV, a state revenue department) starts poking around, you will likely be found to be in the wrong and be subject to penalty.
 
It's a risk though, because if anyone (the DMV, a state revenue department) starts poking around, you will likely be found to be in the wrong and be subject to penalty.

I agree with colbgw02, that it is a "risk though, because if anyone (the DMV, a state revenue department) starts poking around, you will likely be found to be in the wrong and be subject to penalty." State medical boards are currently on a witch hunt for traffic citations in a search for DUIs that were pleaded down to traffic citations, so it is well worth the waste of a day and the $300 to $500 to register your car in your current state to keep from getting a penalty you might have to report the the medical board.

You have to be careful about getting too many tickets since when you get a second or third ticket the police can establish a pattern of residency and thus track how long you are in the state, With speed camera and red light cameras taking your picture and entering you into their database every time you drive by it may be more difficult now to go unnoticed for three or more years of residency.

I kept my car registered at my parents address while I was a resident and fellow in states at lest 500 miles form my parents address. I scraped off the windshield inspection sticker when they expired and didn't inspect my car for 4 years. The only time I got any problem was when I filed a claim with the insurance company for an accident that was not my fault, The nasty claim representative did not like that I was 1500 miles from my parents address but I claimed I was a student and that seems to be enough, never had to send any proof. I am from one of the 18 states with no front drivers license plate, so I occasionally would get pulled over for not having registration stickers in my window and front plates, harassment that I would have avoided if I was registered in state I was driving. I do not think I would attempt to do that again since driving an out of state car is a ticket magnet.
 
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