Yes, when you change domiciles, the process is to re-register all vehicles, get new license, new plates, etc. The new state will require you to do all of that. You can't mix and match residences in order to maximize goodness (i.e. if Texas has high auto insurance rates, and it does, pick a lower insurance state for the drivers license; but use Texas for income tax purposes; and then use some other state for health insurance; whatever). So, you take the good with the bad (Texas pros: No state income tax, reasonable vehicle registration fees, conveniently located in the middle of the country for those times when you do have to physically be present; Texas cons: Somewhat high sales tax which can be a big problem when buying a new rig or boat for tens or hundreds of thousands of dollars, higher auto insurance rates than many places). Being half-in/half-out is sort of grey area...you probably won't get in trouble for it, but you may run into problems if you have any legal problems or have to file a major health insurance claim or something. Which reminds me, I need to get health insurance sorted. It'll save me money to move it to a Texas provider, probably, since California is among the most expensive states for health care...I just haven't gotten around to it.