Really, really rich people often don't stay in one place for very long. Ron Burkle, for example, is often identified as a Beverly Hills billionaire, but he spends much of his time in London and NY. Likewise, billionaires who are ostensibly based somewhere else end up living here at least part of the year. In its Wealthiest Angelenos issue, the Business Journal compiled a list of L.A.'s part-time billionaires. They include Microsoft co-founder Paul Allen, Oracle CEO Larry Ellison, computer entrepreneur Michael Dell, and Dallas Mavericks owner Mark Cuban. From Richard Clough's story:
Lon Morton, who handles money for wealthy clients as chief executive of Morton Capital Management in Calabasas, said one reason many well-off individuals establish primary residences in other states these days - often Texas or Florida - is to avoid California's notoriously high tax rates. "It is a beautiful state for people to come and perhaps have a second home or third home or beach house, (but) this is not the kind of state that is a welcome oasis for wealthy entrepreneurs to establish residence," he said. "We do see people that are coming here, but they don't want to pay state income tax."
Morton said there used to be more ways for wealthy people to avoid certain state taxes in California, but "there aren't near as many tax shelters today." Indeed, it is notable that two local billionaires recently moved their primary residences to states with no income taxes, dropping off the Business Journal's annual Wealthiest Angelenos list. Biotech entrepreneur Alfred Mann, founder of Valencia's MannKind Corp., now considers Las Vegas his primary residence, though he retains a large Mulholland Drive house he designed himself.