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This is a question that took me literally years to discover an answer to. And the short answer is: they can, in some cases.

What they're actually looking for is when you established a job or a residence. If you sign a rental agreement, receive mail at a residence, begin employment, or in some other way establish your residence, then the DMV uses that as proof that you started living there, and in general this proof is furnished by those who need a renewed driver license.

But for those paranoid conspiracy theorists who really believe the government has the capacity to track each and every individual at a whim, consider the sheer number of people who move on a daily basis in California alone (something like 25,000 people change residence within, to, or from California in a given week, as of 2013). This would require 100-150 dedicated employees to track, update, and filter through gigbytes of recorded data, looking for evidence that someone was moving--and that doesn't even take into account the software and computing power to pull that off. And while theoretically possible, California just doesn't have the budget for something like that.

So fear not: the California DMV isn't trying to track you (though they certainly do track people); what they're trying to do is to ensure that people don't try to have multiple driving licenses and circumvent laws designed to prevent tax loopholes which deny it the money it so richly extracts from its population.

And for the record, this is also true of most other states in the USA.

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Q: How would the California DMV know how long you've been in the state when registering a vehicle?
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