Ben Steverman, of Bloomberg, writes about New York’s attempt to collect taxes from New Yorkers who migrate to other states, such as Florida, for tax reasons.  His article begins as follows:

Every year, some 55,000 New Yorkers move to Florida, more than those who migrate to any other state. In addition to year-round sunshine, ex-New Yorkers also get relief from some of the country’s highest state taxes. And while academics disagree on just how much taxes influence moving decisions, studies show taxes especially sway retirees and other folks living off investment income. According to the AARP, more than half of New Yorkers over age 50 who are planning to retire said they’re considering leaving the state.

New York is not taking this lying down. Few states are as strict about residency rules, accountants and attorneys say, which means that if New Yorkers want to leave–and take state tax revenue along with them–they must prove they really are gone. Each year, New York’s Department of Taxation and Finance collects more than $200 million from “residency audits,” in which taxpayers must provide elaborate evidence of their whereabouts.

Read full article at How New York Hunts Down Tax Refugees – Bloomberg Business.

 

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.