I know this topic has been addressed in the past, but I would to take the chance to revisit it.
The Admiral and I have fallen in love with Arizona, and we have become very careful about residency requirements. Frankly, it is becoming a chore for us to get the hell out of Dodge at the end of 6 months, not to mention declining all kinds of income opportunities.
All I can glean from past discussions is that Arizona is not a tax favored state. But now we would lie to learn some specifics, especially if there is an RVer or two here that have already gone through the experience of moving to AZ with their RV from another state.
My first question is on the possible taxation or usage fee recovery, Some states, like South Dakota, will charge you the difference between the sales or usage tax you might have paid on your RV when you purchased it, compared to their own tax rate. That would be too expensive for us. We paid 0% in Montana, and would then owe 3% of our purchase price to South Dakota. And SD does not allow any depreciation on the tax base. We would still owe it 20 years later.
Is there a comparable rule in Arizona? Or is Arizona like Texas in that they consider an RV already purchased before moving into Arizona, to be already a done deal and they don't try to recover a piece of the money pie for themselves?
Assuming Arizona will not be interested in usage fees or sales tax, my next question is the MV registration fees. I heard they are more expensive than any other state. We pay about $400 a year in Montana. What would we pay in Arizona for our RV and toad.
I also heard MV Insurance is very expensive. We pay $1600 a year to Progressive with our Montana residence. Will this go up or down in Arizona?
We then also heard that Arizona taxes you for social security payments. Is this true? Montana does not tax us for any of it, though I think there is a level if exceeded that they start taxing.
We know we would have to pay income tax on any work related salary we earn in AZ. We have declined a lot of job opportunities because of that. We even turned down payment for our karaoke show and do it gratis. This could be a nice income producer for us, plus Sharon has a great background in retail sales, and I have a solid business background. In fact, when we began fulltiming, I closed my consulting business and also a fishing charter business. Neither of us want to get back into a full time job, but we get sometimes disgusted at some of the money thrown at us for doing some things we love to do.
Can anyone here help us sort out these factors? Autos, RVs, insurance, social security, and income tax impacts if we officially move to Arizona and stay here g=for a greater part of the year?
As a side question, if we can't stay as long as we like, we are looking for other states where we could rent an RV lot on an annual basis for under $5,000 a year. We would have to be allowed to set a shed on the lot. It would be a big plus if the park had activities and amenities like pools, quilting room, activities rooms, etc.
In the end we may stay put in Pueblo, as we love it here, but its becoming increasingly difficult to limit our stay to half a year.