Hastings International and Comparative Law Review


Dana L. Mishne


Under current California law, individuals classified as residents are taxed on their entire taxable income. Nonresidents are taxed only upon income derived from sources within California. This Note initially examines California's current standard for determining residency. The author points out that the current standard provides flexibility, but is too subjective to provide certainty. The author then discusses the current objective standard by which the federal government determines United States residency. In addition, the author suggests a modified version of the federal standard. This version would delete inapplicable provisions, but retain objective tests. In conclusion, the author proposes that California adopt the third option: a version of the federal standard adapted to local concerns and requirements but providing much needed uniformity and predictability.