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I doubt this would be deemed Constitutional, but it would cost a lot of money to fight it in court, all the way up to the Federal level. My guess is the Libs control the Federal Courts out there too, so you'd have to appeal the 1st Federal decision, to get to the appellate court. They might control that too, I'm not sure.
If I lived there, I'd get out NOW!
What a desperate money grab by the Socialists out there....so Un-American, but that is what they are.
Not sure if this is the sameone but they had a bill since 2018 that proposed a wealth tax. That being said I could see some kind of state wage tax based on specific income like a NY actor comes to Hollywood to film a movie. Or if you sell an asset in California like a house. But a 60 day resident wealth tax?
Problem is it eventually won't start at millionaires and above. Every now and then I've read stories from Europe in particular where if one has more than 100K in one account they would be subject to a tax. I'm sure there are plenty of loopholes that could be eliminated.
Assembly Bill 2088 failed to become law, however California may yet try and reintroduce similar legislation.
The Courts in the US including the Supreme Court would have to make rulings on the legality of this if it were ever passed by California, and in terms of non-US citizens with assets outside the US there is no way California could enforce this.
Quote:
Originally Posted by Weaver Tax Advisors
Knowing California is looking to increase tax revenues, taxpayers should consider the elements in Assembly Bill No. 2088 and begin planning for similar legislation in the future.
Assembly Bill 2088 would have required an annual valuation or statement of value, signed by the taxpayer, as of December 31 of each year. The assets that would have been subject to the tax were publicly traded stocks, bonds, options, and futures; stock in an S Corporation; interest in a partnership; interest in a hedge fund or equity fund; cash deposits; art and collectibles; pension funds; and real property.
Real property held directly by the taxpayer, such as a personal residence, was excluded from the wealth calculation.
Part-year residents and non-residents would also have been subject to the proposed tax. A special apportionment formula addressed a new classification of taxpayer known as a Wealth Tax Resident (WTR). The WTR rules would have continued to apply for up to 10 years, even if the taxpayer no longer resided in California. Taxing individuals after they have moved out of the state is called “trailing nexus.”
Trailing nexus arises from the concept that activity generated in a state does not stop when the contact between the state and business ends. For example, the State of Washington imposes trailing nexus on businesses that leave the state for one year for business tax and four years for sales tax. But imposing a wealth tax on individuals for up to 10 years after they left would make a new California requirement — if it ever passes — ripe for a due process challenge.
When the next legislative session begins, the California legislature could possibly pick this issue back up, along with other legislation that would increase the income tax rate for high-income earners. Residents and taxpayers in California should watch for changes and consult with advisors on the potential impacts.
The Courts in the US including the Supreme Court would have to make rulings, and in terms of non-US citizens there is no way California could enforce this.
One of things they mentioned was a 'valuation' statement to be filed by each taxpayer so they would have to list stocks, bonds, mutual funds or 'real' property with residences being excluded. Theoretically if one has a good year on the stock market they could find themselves declared a millionaire even though they might have 100K in the bank.
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