Establishing a change in domicile away from California requires demonstrating a physical presence in a new location coupled with the intent to make that new location one’s permanent home. This involves severing ties with California and establishing new connections in the new state of residence. For example, registering to vote and obtaining a driver’s license in the new state are common steps.
Determining residency is crucial for tax purposes, as California residents are subject to California state income tax on all worldwide income. Successfully demonstrating non-residency can result in significant tax savings and simplifies compliance with state tax laws. Historically, residency disputes have been a common area of contention between individuals and the California Franchise Tax Board, highlighting the importance of clear documentation.