This came up at lunch today: A co-worker’s sister from out-of-state reminded her that she should not retire in California and then move away. It seems that California will charge you income tax on eny money you make for the rest of your life if you retire here, even if you are a resident of another state.
I see a number of things wrong with it:
The person is not using any of California resources, and so should not have to pay for them. (That’s why they paid taxes when they lived here.)
The person may live in a state that has income tax (which is most of them). If California charges them income tax, they are paying for the same income twice. (i.e., double taxation)
A non-resident does not have voting privileges (i.e., “Taxation without representation”)
This is not the first time I’ve heard of this. How can it be legal for California to collect income taxes on non-residents who do not generate any income in California?