HOME BASE - STATE - RV-Dreams Community Forum

Starbird · RV-Dreams Community Member

HOME BASE - STATE

53 Merc · RV-Dreams Family Member

Actually, there are several threads on this forum that speak to your question. Failing that, go to Escapees.com for additional information.

It all boils down to what you want to do. There is no one size fits all for full-timing, nor is there one state that fits all needs. A lot of people use South Dakota as a home base, and a lot use Texas, with many more in the middle somewhere.

Mallo · RV-Dreams Family Member

For us it was easy we were in the west when I opted to change over my drivers license and it was easier in South Dakota then in Texas.

Mallo

bjoyce · RV-Dreams Family Member

If you are still living in California I have trouble seeing how you can move on paper and be legal. If you can take out of state delivery of the 5er and leave it out of the state for many months then you can avoid the taxes. The decision on where you legally live, called your "domicile", is a very individual decision. Taxes is only one thing to think about, health insurance, financial entanglements, etc., can make the decision more difficult. We know more than one who got burned badly by health insurance issues by changing states, especially existing conditions. If you to continue to live in California much of the year you legally live there, and California is the most agressive about enforcing that. Don't jump into another state just because it works for others, do it after doing your homework. (I know that is what you are trying to do.) The main states full-timers gravitate towards who can move are South Dakota, Texas, Florida, Montana and Alaska, about in that order. (Alaska is about the best for taxes, and no you can't get the dividend if you are not physically living in the state. The downsides are you need to go every 4 years to renew your driver's license in person and need to maintain two addresses, one in the lower 48 to get the bulk of your mail.)
(For health insurance and financial reasons we needed to remain Washington State residents and many think we are nuts because they are in different circumstances or didn't do their homework.)

Terry and Jo · RV-Dreams Family Member

I have also heard that after one establishes a new "home state", one has to be careful of how long they stay in another state. It may be that they vary, but a lot of states will say that certain "conditions" then makes one a citizen of that state.

Being in a state for more than "X" number of days may be enough to cause one to become a citizen of a state that throws everything off. Could certain employment conditions cause one to become a "resident?"

I am thinking that someone posted a comment on a forum (somewhere) that I frequent that gave a book title or website where one could research each state's residency requirements. I'll see if I can still find that.

Terry

Racerguy · RV-Dreams Family Member

One quick point to remember in this process.There is a lot of difference between tax AVOIDANCE and tax EVASION.One could save you money the other could put you in jail.Bill makes a great point.You really have to do your homework because reducing one cost may cost you much more in another area.An example would be saving $1500.00 sales tax which is a one time cost but paying higher license and insurance costs year after year that will eventually cost you more.We remained Colorado residents because we could AVOID state income taxes on the first $20,000 per person on our retirement funds.We could not find a state that saved us enough money on other related costs to make a difference.You need to run several scenarios to see what fits your particular situation.Some where on this site Howard did a pretty extensive explanation of this very subject.

Luvglass · RV-Dreams Family Member

You may want to buy this book - Choosing Your RV Home Base
http://rvbookstore.com/shop/detail.aspx?m=2&p=460

Luvglass · RV-Dreams Family Member

Here is Howards discussion on the subject.
http://www.rv-dreams.com/home-base-selection.html

Racerguy · RV-Dreams Family Member

http://www.rv-dreams.com/home-base-selection.html

Dr Gonzo · RV-Dreams Family Member

Three of the most reasonable and certainly three of my favorite posters working together (miles apart) to address a very important issue for those contemplating FT RV'ing...good work Bill, George and Fred!

rclvnv · RV-Dreams Family Member

Hi, As many have said, there are a number of favorite states, but we (as former CA residents and business owners), chose rural Nevada,several years ago. Residency is flexible,as mailbox stores work well. and if you choose a rural county like Nye (60 miles from Las Vegas), no smog requirements,and low insurance rates (comparatively), no income or estate tax. However, DMV fees are much higher than SD,TX, and others, but again, you don't have to go so far. I think it might be easy for you to sort of "slide" into Nevada residency, if it suits you otherwise. As mentioned, the CA tax people are most aggressive, so I would plan carefully before and as you make plans,especially if you are selling assets, or moving a sizable retirement account.No legal or financial advice intended,just sharing personal experience.

Richard

The Crumps · RV-Dreams Family Member

bjoyce: Why do you not mention Washington state? It's an income tax free state. We're from WA so not a problem in trying to move somewhere but just wondered why you don't recommend it? I'm wondering if there's something I should know about as we're getting ready to FT.

bjoyce · RV-Dreams Family Member

Washington has high sales tax and that applies to your RV. If your RV costs more than $30,000 it is treated as a luxury and they add 0.3% to your sales tax. When we bought our motorhome in 2004 the sales tax rate was 8.8%, 8.5% plus the 0.3% luxury tax. Once you have bought the taxes and license fees are more reasonable.