What Does it Mean to be a Resident of Nevada?
To be considered a resident of the Silver State, a person must not only have a principal and primary residence in Nevada, but also must establish residency for the purpose of obtaining a Nevada Driver’s License or obtaining an identification card from the Department of Motor Vehicles (DMV). According to the Nevada DMV, residents are "those persons who have established a fixed and permanent abode [in Nevada]." The DMV further states that "residency requirements for voting, registration, tuition and legal residence may differ from those for obtaining Nevada driver licenses and ID cards."
NRS 82.021 states that the terms "inhabitants" and "citizens" apply only to persons who have established residency and live in Nevada. "Resident" is defined under NRS 482 . 103 as "a person who has established legal residence in this State for at least 185 days as one’s fixed, permanent and principal home and place of habitation." Residents are those persons who have lived in Nevada for 185 days or more of the calendar year. However, for purposes of recording, taking exams, or conducting a driving test, a person is allowed up to 30 days to obtain residency. An exception to the 185-day rule applies to certain members of the military and their spouses/dependents (NRS 10.155). There is an exception to the 185-day rule for members of the military and their immediate family members and for certain members of Congress.
Nevada residency comes with a number of advantages. Tax-wise, Nevada is one of seven U.S. states with no state income tax, which extends to businesses and corporations. This can be a big incentive for businesses looking to relocate their headquarters in Nevada.
How to Become a Nevada Resident
To establish residency in Nevada, specific steps need to be followed to confirm that you have made the proper and definitive choice to be a resident of the state. The process for becoming a resident is fairly simple when it comes down to the nitty-gritty of what steps are needed, but you’ll want to ensure that you’re following the process as outlined.
First, you will need to submit an Application of Nevada Driver License or Identification Card. You cannot obtain a driver’s license in Nevada until you have proved residency here, which consists of several steps. Regarding government identification, you may be able to get a Nevada driver’s license or ID card if you possess a valid driver’s license from another state. However, if the document has expired, then you will be required to provide proof of residency upon your application submission. Technicalities such as the expiration date of your out-of-state driver’s license and more can vary from state to state, so be sure to check on the details before submitting your application in Nevada.
When it comes to proving residency in Nevada, you’ll need to bring the following documents: Document requirements for proof of residency can also vary depending on your license. You’ll also want to bring your most recently issued out-of-state driver’s license or ID card.
For your license application, if you do not have a valid driver’s license from another state or if the document has expired, then you will need to bring the following: If you have moved from another state but have yet to obtain a valid Nevada driver’s license, it would be a smart idea to maintain a residency outside-state until you are officially deemed a legal resident.
Once you have applied for a Nevada driver’s license or ID, you are able to easily take "reasonable" steps to prove residency in Nevada, including obtaining government-issued documents while you live in the state. If this seems ambiguous to you, Nevada’s DMV has provided its own example of what "reasonable" steps may entail:
The timing aspect of establishing residency is another important point to keep in mind. You must live in the state for at least 365 consecutive days before you can qualify for certain benefits and privileges that are only exclusive to Nevada residents.
Advantages of Becoming a Nevada Resident
One of the primary motivations for establishing residency in a no income tax state is the obvious benefit of not having to pay state taxes. In addition to this, Nevada’s attractive tax structure makes it a suitable base for many businesses, not to mention the personal protections that Nevada offers for asset protection planning. Some other reasons might be:
Voting Rights: As a resident of Nevada you are able to vote in all federal, state and local elections.
State Services: Establishing residency makes a person eligible for all state services such as roads, schools, hospitals, and police protection.
Employment Benefits: Nevada has a very favorable business climate that includes no taxes on corporate or personal income, no estate or inheritance tax, and low property taxes. The lack of an inventory tax may also eliminate the need to apply for a personal property tax exemption for your business.
Tuition Residency
Nevada colleges and universities classify students as resident or non-resident for tuition purposes. In most cases, if you are a resident you will pay lower tuition than non-residents.
To be eligible to pay the resident tuition rate, you must be an established resident of the State of Nevada for at least a year prior to the term for which you are applying for residency. To establish residency, you must demonstrate physical presence in the state and intent to remain in Nevada. In determining your residency status, Nevada colleges and universities look at factors such as tax and motor vehicle registrations, employment and home purchases.
If you are a transient student and have completed current or most recent coursework through a Nevada college or university, you may be classified as a non-resident, unless you can prove residency status.
If you are a parent or legal guardian of a resident Nevada high school student, you may qualify for an exception. if that student takes, on a full-time basis, course work of at least 12 credits per semester leading to college credit or towards earning a degree in a Nevada higher education institution, you may be considered a resident for tuition purposes.
Some special status students, including military personnel and their family members, may qualify for an exception from the above rules and may be eligible for residency for tuition purposes as long as they continue their education at a Nevada higher education institution.
College admissions offices can provide more information about tuition, housing, residency requirements and general information about financial aid.
How Residency Impacts your Income Taxes
Establishing residency in Nevada can have a significant impact on an individual’s tax situation. The most direct impact is likely to be on state income taxes. According to the tax foundation, there are just eight States with no individual income tax: Alaska, Florida, Nebraska, Nevada, South Dakota, Texas, Washington, and Wyoming . While some of those States impose a tax that is equivalent to an income tax, to a one degree or another (I’m looking at you Wyoming), as a practical matter, establishing residency in Nevada will mean no state income tax.
The primary downside is often the choice between the lack of state income taxes and family ties and/or business opportunities outside of the State. Finding a balance between these competing considerations is probably the most challenging aspect of establishing residency in Nevada.
Issues when Establishing or Proving Residency
In practice, we have seen some challenges for clients who try to establish or prove residency in Nevada. When it is not obvious that you are a Nevada resident, the court can find the evidence insufficient, even if you believe you are a Nevada resident. A common situation is a client trying to find a court that will find them a Nevada resident when they are living in another state most of the time. A common client will be a snowbird with a primary home in Arizona or California, but who comes to Nevada for an extended period every year. You must be able to get a court in Nevada to find you a Nevada resident; and in Clark County this is very difficult.
Some courts may require a Nevada driver’s license, but if you do not drive it is unnecessary and may be cost prohibitive due to the $350.00 fee to obtain your Colorado driving record. Some courts hold it against you that you have not been to division of vehicles to be allowed to register your vehicle in your new county. Other courts will not allow a Nevada address for vehicle registration if you are not driving. If you own an out of state vehicle and do not have a Nevada driver’s license, you have to do some work just to be able to get a vehicle registered in Nevada. If you come down for a winter or summer hiatus and want to keep your out of state boat registered in your state, you have to register it in your Nevada county in order to get your casino privilege card that allows you to play in casinos in your county.
If you have an out of state bank account and have not switched it, many courts will not accept the out of state bank account as evidence of the Nevada residency. Only bank accounts opened in Nevada will be sufficient for some Nevada counties. Overall, even with clear and convincing evidence to support your residency, the courts in Clark County will almost always find that the other party has met their burden of proving you are not a Nevada resident.
Residency for Vehicle Registration
In addition to vehicle registrations required once Nevada residency is established, a change in residency can trigger DMV vehicle registration requirements. Any person who becomes a resident of Nevada is required to register their vehicles within 30 days after becoming a resident. Or, any person that acquires a vehicle to operate on Nevada highways is required to register the vehicle within 30 days after acquiring the vehicle. Veh. Code §482.010, 482.103.
Registration of a vehicle will require a Nevada residency document, such as a Nevada Driver Authorization Card or Nevada driver’s license. The DMV will accept these documents, along with evidence showing initial Nevada residency: Foreign Nationals, Non-Residents & Visitors. A foreign national or non-resident who is a non-tourist will be required to be identified in Civil Database in order for the vehicle to be registered. This rule is strictly enforced and no exceptions have ever been recognized .
The types of documents that are acceptable to show the required Nevada residency are the following: The following are typically not acceptable as evidence for establishing residency or proof of ownership: In many cases, a simple utility bill or Nevada letter will suffice and save time and effort during the sales process. It is important that ownership is concerned with compliance at closing because ownership has certain disclosure requirements and licensing requirements. Once a Nevada residency is established, it is always preferable for the individual to go directly to the DMV and register the company vehicle in order to avoid any issues regarding residency.
Ten-Year Foreign National Residency. A foreign national who is granted a 10 year residence permit is permitted to establish residency in Nevada upon approval by the DMV and by showing the required Nevada identification and proof of Nevada residency. By issuing this permit (which is entered into its database), the foreign national will not be required to carry Nevada dealer plates. Most other rules apply to foreign applicants, except that the DMV does not recognize the 6 month rule for the sale of a vehicle to a foreign applicant for a vehicle that has dealer plates in inventory.