DALLAS, TX / ACCESSWIRE / June 11, 2019 / Locations like California and New York who are historically known for their high tax rates are being impacted by residents who are seeking alternatives to move out and relocate to more affordable areas. However, with those rates rising, local and state officials are working to make it harder than ever. A new group of tax regulations and strict processes are being put in place for those looking to change their domicile to ensure residents looking to move aren’t just trying to avoid nationally high tax rates – like California’s national high of 12.3%. This tactic is slowing down relocation rates but isn’t stopping it as more residents are trying to get out with each passing year.
Starting with businesses who have been coming out of popular areas like California’s Silicon Valley and Bay Area as well as New York’s city burrows; the attraction of more affordable locations, property options, tax breaks and resource networks has driven many well-known corporations to pack up and relocate. Those areas that are bringing them in are states such as Texas, Washington, and Arizona who are offering appealing benefits to the organizations coming inwards. By driving this increase in commercial interest, networks of other businesses and the workforces that employ them are also following suit. “Particularly with residents that have lived and worked in the heart of a city, an industry or community in high cost areas are seeing growing opportunities elsewhere that is pulling them across state lines. The underlying cause points mainly to economic climates fluctuating and the cost of living and doing business in high taxed areas becoming increasingly harder to compete in.” shares Texas-based entrepreneur Marcus Hiles.
The new regulations force residents looking to relocate out of state to prove they intend to permanently or indefinitely change their domicile; the state in which determines income, estate and other taxes. This becomes complicated for those trying to establish residency in lower-tax states who still have ties through property, businesses, etc. in the location they are “leaving”. But with new reforms introduced like The Tax Cuts and Jobs Act which put a $10,000 cap on state and local tax deductions in these high taxed areas; Americans are actively looking to establish legal residence in areas where liabilities are limited.
The stats support this with New York seeing the third-largest relocation rate in the nation, with over 450,000 people moving out within the past year while California had the single highest outflow of domestic residents in the US. “More than ever people are catching on to the growing opportunities in both professional and residential life that affordable, low tax states can offer. Along with globally recognized organizations transitioning their operations to areas with lower liabilities, we are seeing a new up rise of communities flourish as they take hold of the interest and success leaving other parts of the country.” shares Marcus Hiles.
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SOURCE: Marcus Hiles
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