CA, AZ, or NV Residency?

[mikEXpat]

I'm getting closer to deciding where I'll land the plane when I come back to the states. So far, Nevada. Why?

Based on an income of around $24,000 a year, and a 10 year old van I fix up, I could live a pretty nice life on the road. That might be asking too much, but it's a goal. Here are the three areas I think could affect my life and the difference in cost between them. 

Gas Prices - If I'm going to save 18% by spending more time outside of California then that might be the deal breaker right there.
Car Repair Costs - Labor costs in California are going to make car repair more expensive. I'd save at least 11% in Nevada and Arizona.
Car Insurance -  This is a big one. Can I really save over 30% outside of California?

So, just those three costs alone make me think "residing" in Nevada is best. Add in the lack of income tax, reasonable car registration, and the fact that a visit to the state means I get to eat at cheap buffets...I'm in.

Your thoughts?


==============================
Gas Prices
http://gasprices.aaa.com/
California $2.70
Arizona $2.20
Nevada $2.50

Car Repair (Labor Cost)
http://wpri.com/interactives/average-car-repair-costs-by-state/
California $1027
Arizona $957
Nevada $908

Car Insurance Rates
http://www.insure.com/car-insurance/car-insurance-comparison/results
California $1,800/yr
Arizona and Nevada at around $1,200/yr

Car Registration and Title

California 
$46 plus additional fees based on the type of vehicle, license plate type, and the owner's county of residence and driving record.yearly

Arizona
$8 ($8.25 in Metro Tucson and Phoenix) + $1.50 air quality research fee + vehicle license tax (assessed value of 60% of the MSRP - reduced by 16.25% each year) every one or two years

Nevada
$33 yearly + Title $28.25



Taxes (Based on ~$24,000 Gross)

Federal 6% (15% Bracket)

Income Tax
http://taxfoundation.org/article/state-individual-income-tax-rates-and-brackets-2016
California 4%
Arizona 3.5%
Nevada 0%

Medicare 1.45% Set Rate
Social Security 6.2% Set Rate

Health Insurance
The tax penalty for those without health insurance is also set to increase in 2016 from $325 per adult or 2 percent of household income to $695 or 2.5 percent of household income, reported the The New York Times.

http://kff.org/interactive/subsidy-calculator/
Looks like health insurance is pretty much the same in every state, somewhere around $100 with the tax credit. I'm not sure about deductibles and access to health care, doctors, and treatment. That's another question for another day.

 

[LadyJo]

The county you register your vehicle in Az will matter. Phx and Tucson have emission testing and they mail you the tags. Must be done every (or every other) yr depending the age of the vehicle. Flagstaff, no emissions and you can buy your tag for several years. So unless you want to go to the city every year, during the same month for the testing and pick up tags at one of the DMV offices .......

Insurance is also less expensive in rural or less populated zip codes.

 

[TrainChaser]

Nevada doesn't have a state income tax.

 

[johnny b]

you should also look into South Dakota, Texas, and Florida.

 

[akrvbob]

Remember, just because you're a resident doesn't mean you'll spend time there. I'm spending this summer in Oregon, tremendously enjoying not paying any sales tax. Gas is in-between in prices and I get all the benefits of being a Nevada Resident=-no sales tax, no income tax.
Bob

 

[KASibson]

I have no idea what state you *should* choose, but I would say "not California".
It's expensive and you'll need to have your vehicle pass a smog check.

 

[USExplorer]

Parts of Arizona have among the cheapest insurance rates in the nation. The big cities cost quite a bit more.

 

[KayakGirl]

Remember, just because you're a resident doesn't mean you'll spend time there. I'm spending this summer in Oregon, tremendously enjoying not paying any sales tax. Gas is in-between in prices and I get all the benefits of being a Nevada Resident=-no sales tax, no income tax.
Bob

Bob -- what's Nevada's jury duty policy?

 

[akrvbob]

Sorry, I don't know. I've never been called in 8 years.
Bob

 

[wayne49]

The car regis & title fees listed do not represent the initial first year's costs for CA and NV. I know nothing about AZ.

Both NV & CA are more expensive for bringing a vehicle into the state than the figures shown.

 

[Vagabound]

In case you haven't seen it already, just ran across the following website.  It provides some very good info that allows intrastate and interstate comparisons.  Just need to click a state on the map, and you get a page or more of summarized info:

http://www.carinsurance.com/state-car-insurance-rates/

-----

A few questions using AZ as an example, for anyone who might happen to know:

1.  Sales tax on used vehicles:  Is there a separate sales tax, or is that what is being called a Vehicle License Tax (VLT), covered in #2 below?

2.  Regarding the VLT, the AZ Dept of Transportation (ADOT) says the following:

A vehicle license tax is based on an assessed value of 60 percent of the manufacturer's base retail price reduced by 16.25 percent for each year since the vehicle was first registered (15% before 8-1-98). From there, the rate is calculated based on the assessed value.  $2.80 per $100 of assessed value for new vehicles and $2.89 per $100 for used vehicles.

(http://www.azdot.gov/media/blog/posts/2012/08/29/how-are-my-az-vehicle-registration-fees-calculated-)

a.  Though not exactly specified, that text seems to me to indicate that for used cars, their original value is the starting point.  In other words, if you buy a 15-year-old van today, does ADOT try to determine what it cost new in 2001, and then start its calculations there?

b.  How many years does the VLT continue?  Math isn't my strong suite, but I think this is correct:  If they reduce it 16.25% of some selected original figure every year, that tax will eventually disappear (100 / 16.25 = bit over 6 years).  On the other hand, if they reduce it 16.25% of each year's remaining figure, it could be charged indefinitely.

Hope that makes sense.

Vagabound

 

[Almost There]

It's done on a declining balance method that is common in accounting practices.

If value is $1000. at purchase and you depreciate it by 5% each year, at the end of year 1 it's worth 95% of original value. At the end of year 2 it's worth 902.50.

I've used the 5% for easy math BTW.

And yes, it will always have a value.

 

[Vagabound]

It's done on a declining balance method that is common in accounting practices

...

And yes, it will always have a value.

Are you speaking from accounting experience only or some firsthand knowledge of how AZ does it?

Vagabound

 

[Almost There]

Accounting experience.

It's what's called Commonly Accepted Accounting Practice and based on a principle that no matter how old something is it still has a value. When a piece of equipment such as a vehicle is discarded, the remaining value is taken off the books.

I didn't check your math but I seriously doubt that AZ would consider a vehicle to have no value for tax collection purposes after only 6 years.

At least AZ uses a static way of figuring out value...Ontario uses a Black Book value or the sale price to calculate the same type of tax. You pay based on whichever value is more - what you paid for the vehicle or what they say it's worth!!

 

[Almost There]

Correction: It's called Generally Accepted Accounting Principles!

The CAAP didn't sit right with my old brain and it took me 20 minutes (which is something of a record BTW) for the right phrase to pop in to my mind...old brain, early morning!!

 

[Vagabound]

Correction: It's called Generally Accepted Accounting Principles!

...

Yep, that sounds more familiar.

I didn't check your math but I seriously doubt that AZ would consider a vehicle to have no value for tax collection purposes after only 6 years.

If they don't (assume it has no value at some point), then they are charging what amounts to sales tax indefinitely.  Or so it would seem.  Or maybe they are using something like a real-estate property tax model, where you pay taxes on it forever just because you own it.

In the states that I am familiar with (outdated now), that was never the case.  But then, those states could have had this perpetual tax embedded in tag renewal fees.

Vagabound

 

[LauraNSasha]

As someone who now lives in Nevada, I would suggest it more than FL, Texas, and SD. We would constantly be going from Arizona to Montana, and we kept stopping in Nevada during the shoulder seasons.

The cost of living is lower. We have our domicile in NYE county, but you could get it in Clark County too. They have the best libraries.

$24K is just for yourself? Certainly doable. Are you a senior or no? Getting the Senior America the Beautiful pass is nice and there are a ton of state parks and federal lands in NV and surrounding areas.

Mail Messages and More at 1970 Leslie Street Pahrump is the address you’d put down for a mailing address. You have to stay in a campground for a month. There are several here in town that are $300 during the summer.

 

[wayne49]

Mailing services are not accepted at Nevada DMV, as an address for a Driver's License. They maintain a list of those providers.

$300 plus electricity for the necessary to survive AirCon during the summer.

Late Fall and early Spring are the best times to stay in lower slower Nevada.

 

[Frood]

As someone who now lives in Nevada, I would suggest it more than FL, Texas, and SD. We would constantly be going from Arizona to Montana, and we kept stopping in Nevada during the shoulder seasons.

The cost of living is lower. We have our domicile in NYE county, but you could get it in Clark County too. They have the best libraries.

$24K is just for yourself? Certainly doable. Are you a senior or no? Getting the Senior America the Beautiful pass is nice and there are a ton of state parks and federal lands in NV and surrounding areas.

Mail Messages and More at 1970 Leslie Street Pahrump is the address you’d put down for a mailing address. You have to stay in a campground for a month. There are several here in town that are $300 during the summer.

I think you can get the California parks pass for free if you are a senior as well...
Only good for day-use and not overnight stays but if it's free then save the $12-18 parking fee to
visit the beaches...

 

[Gr8ful]

You do know it's a 7 year old tread, Right?