California has increased taxes many times to try to balance its budget. If the people who live there are willing to put up with that, that’s fine. However, trying to collect taxes from people who no longer live there is questionable at best.<\/p>\n
On Monday, Just The News<\/a> reported:<\/p>\n According to documents posted online by a family who formerly lived in California, the Golden State is trying to collect income taxes years after the family moved to Florida.<\/strong><\/p>\n The documents, sent on Jan. 6, 2026, asked for receipts, invoices, canceled checks and other documentation showing that the family moved from California to Florida nearly four years ago. The California Franchise Tax Board, which sent the letter, also asked the family for a \u201cnarrative of the circumstances\u201d surrounding the family\u2019s move out of state.<\/strong><\/p>\n Hari Raghavan, who with his wife, Mitali Gala, was the subject of the investigation by the California Franchise Tax Board, said he and Gala moved from California to Florida in 2021. They tried to sell the home they owned in California when they moved, but weren\u2019t able to do so immediately, Raghavan told The Center Square.<\/strong><\/p>\n \u201cThat spilled into 2022, but it was by no definition a primary residence anymore,” Raghavan said about the California home. “We moved to Florida to establish residency in 2021.\u201d<\/strong><\/p>\n New Jersey actually does have an Exit Tax. For example, if you sell a house in New Jersey for $800,000 (that you bought years ago for $200,000), you could owe as much as $15,000 in Exit Tax. I think this is taxation without representation, but as far as I know, it\u00a0 has not been challenged in court.<\/p>\n The article at Just The News notes:<\/p>\n In an emailed statement to The Center Square, the Franchise Tax Board said individual tax records are confidential and information about one individual or family\u2019s tax records can\u2019t be shared. Investigations that determine if someone owes taxes can be lengthy, officials said.<\/strong><\/p>\n \u201cFTB\u2019s audit program serves as the compliance mechanism for administering California\u2019s tax code,\u201d Andrew LePage, an official with the Franchise Tax Board, wrote to The Center Square via email. \u201cA residency audit determines if an individual is a resident, non-resident, or part-year resident for tax purposes. Residency audits take about 18 – 24 months to complete, depending on a wide range of variables.\u201d<\/strong><\/p>\n Those who live in and receive income in California for at least nine months out of the year owe personal income taxes to the state, LePage told The Center Square via email. Officials also told The Center Square that the board doesn\u2019t share its criteria for when to conduct a residency audit.<\/strong><\/p>\n Officials with the Franchise Tax Board would not make anyone from the agency available for an interview with The Center Square.<\/strong><\/p>\n Moving forward, Raghavan and Gala are assembling a response with their accountant, Raghavan said.<\/strong><\/p>\n While he believes in everyone paying their fair share of taxes, he\u2019s found much of the experience with the agency off-putting, Raghavan told The Center Square.<\/strong><\/p>\n \u201cMy issue is with how they go about it,\u201d Raghavan said. \u201cI can\u2019t truly say they have been unreasonable with us, with one exception. I can\u2019t believe they would ask someone for their moving inventory list. Who maintains that?\u201d<\/strong><\/p>\n It is easy to understand why people are leaving some of our blue states.<\/p>\n","protected":false},"excerpt":{"rendered":" California has increased taxes many times to try to balance its budget. If the people who live there are willing to put up with that, that’s fine. However, trying to collect taxes from people who no longer live there is … Continue reading