Community Forums

Dan Niesing · 08-06-2020, 07:09 AM

The whole process of changing one's state of domicile seems intimidating and laborious. If one does change domicile to one of the popular states of TX, FL, or SD, and in a year or two desides to return to their place of origin then everything has to be reversed.

Can I hear from some who have just kept with their present state of domicile (in our case would be WI) and how it all worked for them. Seems like a pmb with ups would be a viable way to keep things simple.

Thoughts and experiences please.

Mississippi · 08-06-2020, 08:50 AM

Dan, from my experience, the main reason for changing domicile is related to state income tax or lack there of. Texas and Florida do not have personal income tax so that can be a significant savings. Changing domicile is not that difficult. If you continue to hold real estate in WI then you may have some issues with property tax on that property as it will no longer qualify as homestead property. To establish residency, one needs a permanent address in the new state ( can be a mail forwarding service), obtain a driver's license in the new state and register to vote in the new state (cancel your voter registration in your former location). In the past, some states have been a problem in registering to vote without a physical address in the state, but I think some of the mail forwarding services have managed to work this problem out. PS: Mississippi does not tax any form of retirement income and has a low tax rate on other income of individuals. Might be worth a look.

Old-Biscuit · 08-06-2020, 09:57 AM

UPS mailforwarding services in Madison WI
https://locations.theupsstore.com/wi...ilbox-services

Jlo11111 · 08-06-2020, 12:39 PM

You can use WI UPS box and it will work just fine, but if you're a full timer it makes no sense to continue to be a WI resident of you don't own property in WI. FL has no income tax and makes it super easy to become a resident of you're a full timer. Here's a thumbnail of the process:

1. Get a FL address from a mail forwarding company (we used good Sam)
2. Get RV insurance for your RV using the new address and print out the policy info showing the new address
3. Change your address with your bank and have them send you something showing the new address.
4. Take these docs, your current title, and two forms of ID to the FL tax collectors office.
5. The tax collector will register your RV, give you a license, give you hard plates, give you a new title and register you to vote.

Really quick and really easy.

Dan Niesing · 08-06-2020, 01:49 PM

Keeping domicile as WI would only be temporary until we really decide we will continue to fulltime rv. Wouldn't want to change everything to another state then discover in 6 months this is not for us and want to return to WI and have to change everything back. If it cost me more in taxes for 6 months to a year I'm not concerned about that.

twogypsies · 08-06-2020, 07:25 PM

It takes 1-2 years to decide if full-timing is for you!! By that time you'll have all the kinks worked out and fast travel done. Then you can start relaxing, travel slower and really enjoy it! Six months is just a long vacation and that's the mode you'll be in.... rushing to see things.

arcaguy · 08-06-2020, 07:54 PM

Changing domicile is not quite as easy as everyone seems to think it is. Your domicile or state of residency is the "place to which you intend to return". Yes the drivers license and voting are a couple of big items on the list but they are not necessarily dispositive of the issue. Have you sold your home, or merely converted it to a rental. Do you still have personal property stored there? Have you changed your doctor and/or dentist? Where is your attorney or accountant? Are you still a member of your church or any fraternal organizations? Where are your banking and financial advisor relationships. The list goes on and on. All of these enter into what is called a facts and circumstances test. If enough of them are in your favor then you have probably changed your domicile. If all you did was change your mailing address, drivers license and voter registration and all of the other factors mentioned above stayed the same you have likely not changed your domicile. One of the down sides to losing this argument with the state taxing authorities is that the fines and penalties for failure to file a state income tax return can be onerous to say nothing of the tax itself. This doesn't even address potential criminal prosecution for state tax fraud. My point being if you really want to change your domicile you really need to change your domicile, not just pretend to change it. I know there are those who will say I'm complicating what is a simple process. They are entitled to their opinion it's just that the opinion of the state taxing authorities is the one that counts here and I can assure you they won't be easily convinced.

twogypsies · 08-06-2020, 08:02 PM

Arcaguy: In our 16 years of full-timing and being around full-timers constantly we've never known anyone going through all you stated to change domicile. Can you cite occurrences where problems happened? Using Escapees RV Club for mail forwarding you can get everything accomplished in a few hours... registrations, driver's license, voting, etc. The whole town is familiar with the process they just send you from one place to another easily. Banking/financial advisors are country-wide. You do everything online. Doctor/Dentist? You're travelers. You don't return to the same one you had before. Lawyer? Why would you need one? Yes, your statement is overkill.

arcaguy · 08-06-2020, 08:23 PM

Here's one article on the subject: https://www.kitces.com/blog/change-d...-income-taxes/
Here's another one: https://www.thetaxadviser.com/newsle...-domicile.html
And another: https://intltax.typepad.com/intltax_...-domicile.html
And just for good measure one more: https://www.nolo.com/legal-encyclope...-domicile.html

The list is almost endless. Do people get away with changing their domicile without really changing their domicile, of course. People also get away with speeding, but nonetheless both are illegal. I wasn't saying that people don't get away with claiming they changed their domicile when they didn't. I was trying to point out what you need to be aware of if that is what you want to do. As I said, if you want to change your domicile you need to change your domicile, not just your mailing address, drivers license and voter registration. This is not a simple subject and that was the point of my post.

momdoc · 08-06-2020, 08:51 PM

We have been using St. Brendan's Isle in Green Cove Springs for over 7 years with no problem. Fl registration fees are cheap on a yearly basis, no stat income tax, easy to get driver's lic and registration for voting.

GeezerViz · 08-07-2020, 12:49 AM

We live in WA and decided not to change domicile. No real reason to. No state income tax here but initial tax and licensing costs for a new rig are exorbitant. Use family for our address. Sounds like you're not ready to change anything yet, so don't. Once you know how you are going to travel, you can do it later if needed.

pduggs · 08-08-2020, 06:09 PM

Quote:

Originally Posted by Jlo11111

You can use WI UPS box and it will work just fine, but if you're a full timer it makes no sense to continue to be a WI resident of you don't own property in WI. FL has no income tax and makes it super easy to become a resident of you're a full timer. Here's a thumbnail of the process:

1. Get a FL address from a mail forwarding company (we used good Sam)
2. Get RV insurance for your RV using the new address and print out the policy info showing the new address
3. Change your address with your bank and have them send you something showing the new address.
4. Take these docs, your current title, and two forms of ID to the FL tax collectors office.
5. The tax collector will register your RV, give you a license, give you hard plates, give you a new title and register you to vote.

Really quick and really easy.

That’s exactly what we did, two years ago. Easy peasy. We used St. Brendan’s Isle and they advised us through the process.

Raider47 · 08-09-2020, 09:34 AM

I have a lot of experience with different states and their laws. Obviously taxes are important with different states collecting different ways. For example, some states have income tax but don't tax a pension. Some have higher property taxes to compensate for lower income taxes. Depending on individual income sources, the benefits of changing residency might not be significant. Also, some states can be very aggressive in collecting money they think you have denied them, (I have heard and experienced many horror stories about California trying to collect).
Vehicle registration is also much cheaper and convenient in some states. Florida allows you to renew over the internet and doesn't require an inspection. Sometimes you can even pay for two years in advance.
Another factor for some people is the different gun laws to include concealed carry licenses and reciprocity.
As far as difficulty or risk, I think it would think it depends on the individual situation. If you have high cash flow and your state would lose a lot by you changing domicile then I would proceed with caution. If you have a modest pension independent from the state you would leave and have no property or busines, it should be very easy to change.
Just my opinion and no offense taken to different view points.

TXiceman · 08-09-2020, 09:53 AM

Texas also allows online registration, but will require an inspection within 72 hours of returning to your destination in Texas. You simply check off the box that you are out of state and the tags are mailed to you. We know several folks the come back to Texas in the winter and never bother with the inspection. I'd rather not chance a ticket and get mine inspected.

We were native Texans and chose to keep Texas as our home state as we plan to return to Texas permanently. We use Escapees in Livingston, TX as our domicile address. If you are not on Medicare, I hear health insurance is cheaper in SD.

Texas FL and SD do not have any personal property taxes on RVs, only a yearly tag fee. For auto insurance, it will depend on two things,,,your county of residence and your credit score.

Ken