For winter residents, what's the down side of making Arizona your state of residence (Green Valley: insurance)

[augiedogie]

I just read a news item, which surprised me. What surprised me was that a typically conservative state like Arizona voted in the expanded Medicare coverage from Obamacare. I assumed that they went like many other conservative states and opted out of that part of the ACA, since it will eventually be a big addition to the state budget.

It got me to thinking of something I need to consider. What is the downside of Arizona residence for part year visitors. Any help would be appreciated. I already know about the income tax, which we don't have in Texas.

[gemstone1]

I have found that other than "reported" wages earned in AZ, AZ property tax, AZ vehicle licensing, part-timers are generally not affected by AZ specific conditions....other than increased foot and vehicle traffic during peak season.

Regards
Gemstone1

[Canine*Castle]

We may not have income tax in Texas, but homeowner's insurance is sky high. Taxes aren't low either nor are electricity costs. From one person living in Texas to another, Augiedogie, I'm considering retiring to AZ. Of course, I've only begun my search and hope to get out there to check out the area but right now, I'm looking at Green Valley where there are lots of seniors.

[corydon]

The ACA is a relatively small amount I would think. I got it since I am on disability. Wat was for sure not my wish or plan.
Look at the other option, I can't pay the full premium, get sick and you pay in the end my bill in full...... Now the Insurance company does.

How wil the TS fare after an accident or life changing event.

[Bert_from_back_East]

Because Arizona has a state income tax, there's less "policing," if you will, of part-time residents related to their legal status, physical presence within the state, etc.

In other states with no state income tax that attract lots of seasonal or part-time residents such Florida and Nevada, there's more of a heightened scrutiny to who is considered a resident for tax purposes than in Arizona.

In Florida in particular, there are physical and legal requirements that a part-year resident must meet in order to be considered a resident for tax purposes. Consequently, there's more of a process that one must undergo in order to be considered a Florida resident, whether full or part-time, such as filing a "Declaration of Domicile" form (intent to reside) with your local county and maintaining a physical presence in the state for at least six months and one day.

In my experience, Arizona has no such requirements like that.

My recommendation for a prospective part-year Arizona resident from Texas would be to remain a legal resident of the State of Texas, if possible, for state income tax purposes and keep your personal vehicle(s) registered in Texas, assuming the State of Texas does not impose a personal property tax on vehicles like Arizona (AKA the "VLT"). However, I do know that Texas imposes either annual or biennial safety and emissions testing for all vehicles registered in the state, so the cost of that might offset VLT savings in Arizona.

[jlawrence01]

If you are in Arizona for a few months a year, you will only pay tax on the portion of your income earned within the state.


The question of residency for state income tax purposes cannot be answered by a general rule but depends largely on the circumstances of each case. Generally, no one single factor is controlling, but all relevant facts must be considered in determining residency.

The determination of residency is dependent on physical presence and an intent to abandon the former residence and remain in the new residence for an indefinite period of time. A new residence can only come into being when both of these criteria coexist.

Arizona Individual Income Tax Procedure ITP 92-1.

https://www.azdor.gov/Portals/0/Procedure/itp92-1.pdf