Noble

INTRODUCTION

Plaintiffs and appellants Homer E. Noble (Homer) and Stephanie F. Noble (Stephanie), his spouse, filed an action against defendant and respondent Franchise Tax Board (FTB) seeking a declaration that appellants were not residents of California for tax purposes as of and after March 1, 1994, and particularly March 7 and March 25, 1994. Those were dates on which certain securities were sold resulting in capital gains. Thus, appellants claimed they should not be taxed on these transactions as if they had been residents of California. The FTB counters that appellants were residents of California until after March of 1994 and thus were taxable on all income from all sources during that period of residency. We affirm the judgment of the trial court and hold that notwithstanding appellants’ intention to move to Colorado in the future, the physical facts demonstrate that they had not relinquished their California residency as of March 1994 and were therefore subject to the California tax on the securities transactions that occurred during that month.

BACKGROUND

The parties stipulated to certain facts and added additional facts by way of testimony and exhibits. On…