California Departure Rules Spark Controversy Among Americans

Californians relocating to other states have reported that state officials are requesting explanations for their departure, threatening continued taxation as residents if they fail to comply.

These former Californians have shared experiences of receiving letters that demand proof of their move, sparking renewed debate over the state’s tax regulations, as seen in various online discussions.

MAGA influencer Mila Joy highlighted the issue on X, stating, “Individuals who have exited California are being notified that they must continue to pay state taxes.”

She added, “It’s astonishing—if this doesn’t reflect California’s financial struggles, I’m not sure what does.”

The document Joy shared originated from the California Franchise Tax Board, which conducts standard residency audits to ascertain the exact time taxpayers ceased being residents.

It requests that recipients provide a ‘brief narrative’ explaining their move, along with documentation like moving invoices and employment records to show the exact date they left California. 

The letter’s demanding tone has prompted a flurry of outrage on social media, with one user writing: ‘Amazingly unbelievable that these vultures have nothing better to do with their time other than chase down inconsequential money!’

Others said it was hard to believe California was aggressively pursuing additional tax revenue, noting the state collected roughly $275 billion in personal income, sales and corporate taxes in 2025, with some placing blame on Governor Gavin Newsom. 

Former California taxpayers are being told to prove the exact day they left the state – or risk being taxed as residents

Social media users were outraged by the requests, placing blame on the state and governor Gavin Newsom

MAGA influencer Mila Joy

Another commenter claimed that California will go as far as to ‘hunt people down’ who left the state years ago. 

‘They will literally go into your bank account and take every last penny for what they say you owe and then make you prove otherwise,’ they wrote. 

While the requests have sparked outrage online, the practice is nothing new. 

States including New York and New Jersey conduct similar audits, often with even more detailed tracking of a taxpayer’s location.

The scrutiny is especially common when residents relocate to low- or no-income-tax states such as Texas and Florida.

California, however, is among the most aggressive states when it comes to residency audits – second only to New York, which is known for its forensic approach, where officials closely examine moves that could significantly reduce a taxpayer’s liability.

Officials evaluate a taxpayer’s ‘closest connections’ to determine residency, looking at where they spend their time, where they own or rent property and where their financial and personal ties are strongest.

This may include bank accounts, business interests, family location, voter registration and even where a person’s doctor, accountant or social affiliations are based. 

The only state widely seen as more aggressive than California is New York

New York Governor Kathy Hochul and Mayor Zohran Mamdani have also proposed a pied-à-terre tax targeted at wealthy residence

Maintaining significant ties to California – even after a move – can trigger further scrutiny.

The state is particularly focused on high earners leaving for low-tax states, where the financial stakes can run into the millions, making residency audits a key enforcement tool.

The only state widely seen as more aggressive than California is New York, which applies two strict tests to determine whether someone qualifies as a taxpayer: the domicile test and the statutory residency test.

Under the domicile test, officials assess where a person’s closest personal and professional ties are located. 

If those ties remain in New York, the state can still treat someone as a resident even if their primary home is elsewhere or they claim to live out of state.

The residency test applies to individuals who are not domiciled in New York but maintain a ‘permanent place of abode’ there, regardless of ownership.

To enforce this, auditors can examine calendars, expense reports, credit card statements, passports, cell phone data and even E-ZPass records to track how many days a person spends in the state.

Anyone who spends more than 183 days in New York is considered a statutory resident – with even partial days typically counted as full days, except in limited circumstances such as medical travel.

New York Governor Kathy Hochul and Mayor Zohran Mamdani have also proposed a  pied-à-terre tax that would implement a wave of taxes on second homes that could send wealthy homeowners running for the hills.

Secondary homes valued at $5 million or more would be subjected to the surcharge. Those who would be targeted would be those who live outside the city or don’t pay city tax but have luxury homes in any of the five boroughs.