[AlaskaOregon]

I have read the Oregon rules for who is an Oregon "resident", who is considered "domiciled" in Oregon, and treatment or part-time residents. Our situation, though, doesn't seem to be covered.

We lived in Anchorage, Alaska. Seven years ago we retired, sold our house, and started traveling full time. Everything we own is in our motor home. We maintain a mailing address in Alaska, and our bank accounts are there.

Last August, though, we bought a house in Oregon where we can park our motor home about six months a year. The house is uninhabitable. We have not lived in the house, nor do we intend to, but we will be spending six months parked there in 2009.

1. Are we subject to Oregon Personal Income Tax on our retirement income (none of which has anything to do with Oregon).

2. If we work while we are in Oregon, will our retirement income become subject to Oregon Personal Income Tax? I assume that any earning we have while there will be taxable.

By the way, Alaska has no personal income tax. That's one reason we maintain a mailing address there.

[AtlantaTaxExpert]

The fact that bought land in and then "park" your mobile home in Oregon would tend to mean you are establishing residence there, or at least that would be the attitude of the Oregon tax officials, and I suspect the courts would support the tax officials in this matter. The Oregon website indicates they consider you to be a full-year resident if you stay for more than 200 days, so I suspect you would be considered a part-year resident, at least for the first year or so.

However, if you kept returning to Oregon to stay for six months, eventually the state would declare you a full-year resident.

This is important because, as a part-year resident, your retirement income is NOT subject to the Oregon Personal Income Tax.

Once you become a full-year resident, then ALL world-wide income becomes subject to that income tax.

[AlaskaOregon]

Thanks. Not the answer I wanted, but it is what it is.