The California Taxpayers Association recently shared a cautionary tale that illustrates how the Golden State’s high income tax rates can hit you in the wallet — even if you don’t live here.

The Office of Tax Appeals ruled in the Appeal of S. Milam that a Texas resident owed more than $10,000 in California income tax despite never setting foot in the state during the period in question.

The taxpayer — who was most definitely a Texas resident — asserted that $122,050 in 2017 income from a consulting deal with an Oakland-based school was earned by her wholly owned S corporation. As such, it was not subject to California taxation. The taxpayer stated that the charter school operator that paid her may have improperly filed a Form 1099-MISC under her name.

The Office of Tax Appeals ultimately rejected the Texas resident’s arguments, ruling she failed to provide credible evidence the 1099 was filed in error. She also failed to produce contemporaneous documentation proving “the income was not California-source income that was earned by her as a sole proprietor carrying on a unitary business within and outside California.”

According to CalTax, the opinion of the Office of Tax Appeals is important reading for those considering moving out of California.

While you might be ready to quit California’s high taxes, California’s high taxes might not always be ready to quit you.