When I was out in California, my company closed up our Santa Cruz office very suddenly.
A large contingent of people working there decided to move to just outside of Portland (Vancouver Washington) mainly because of the fact that by living in Washington you wouldn't pay any income tax, and by adjoining Portland, you could do all your shopping and avoid paying sales tax.
I opted not to relocate there with everyone else (it seemed silly to move somewhere just for tax reasons), but I imagine there are at least a fair number of people who use that scenario.
I think it is kind of silly to move somewhere just for tax reasons. I've spent nearly my whole career so far in relatively higher tax jurisdictions, but it's typically way more than worth it for what you get with the location. And for example I'd much rather live and work in the Pearl district of Portland than in Vancouver, Washington. But it seems like Seattle versus Portland is anomalously competitive.
With average traffic/distance and ~25mpg, it takes about $6 for a round trip from Vancouver, WA to Portland, OR. Which would save you ~$4 on a $100 item.
However, for some reason, lots of people in general were fleeing CA at the peak of housing bubble.
That was a "~" too far for HN. It's a 19.8 mile round trip, and gas was $3.71 yesterday in Vancouver, Washington, so making the trip in your 25 mpg vehicle would cost $2.94 in gas.
A large contingent of people working there decided to move to just outside of Portland (Vancouver Washington) mainly because of the fact that by living in Washington you wouldn't pay any income tax, and by adjoining Portland, you could do all your shopping and avoid paying sales tax.
I opted not to relocate there with everyone else (it seemed silly to move somewhere just for tax reasons), but I imagine there are at least a fair number of people who use that scenario.