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[quote=Anonymous][quote=Anonymous][quote=Anonymous]My retired relatives do this. They have a really nice Airstream trailer and spend at least 6 months of the year at an RV park in Florida.

You need to register your vehicles there, change your driver's license, and voting registration to help establish tax residency. One thing to watch for is that in low income tax states, the government finds other ways to raise revenue, like through property tax, personal property tax, or sales tax. [b]For example Tennessee has no state income tax but sales tax is 7-9% depending on what city you're in. Texas has no state income tax but property tax is about 2% (around the DMV it's around 1%).[/b]

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Whenever someone gives the sales tax makes up for it argument I know they are a low earner and haven’t paid high taxes.

Many of us are paying tens of thousands or even hundreds of thousands a year in state income taxes. No, an extra 3% in sales tax on consumer goods and restaurant meals will NOT make up for the $80k I paid last year to my state.

Now if you’re a low earner and don’t pay much in income tax then I can see that you might be concerned with sales tax. [/quote]

The sales tax does come into play in these cases for big-ticket purchases, like buying a new car. You'll be registering it in the low income tax state, but be paying sales/excise tax on it. But I agree, if you have high income, the bigger impact is the lower income taxes.

A friend of mine collects Patek Philippe watches that typically cost $50k+ per watch. He has his jeweler in DC ship it to the UPS store in Delaware and he drives to pick it up there to avoid sales tax. That 2-hour drive saves him thousands. He times it with the family trips to the beach.
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