On May 20, 2009, Tom Golisano wrote a column for the New York Post1 which has received widespread publicity.2 In the column, Mr. Golisano expressed his views in opposition to the 2009 New York State Budget which, among other things, increased the maximum New York State Personal Income Tax rate from 6.85 percent to 8.97 percent. Mr. Golisano made several points concerning problems with the legislative and budget processes of the state government with which we largely agree. However, as tax lawyers who have significant experience in New York State Personal Income Tax residency litigation, we were primarily struck by a relatively brief passage in the column. Mr. Golisano (whom, for the record, we do not represent and have never consulted or met) wrote:
After reviewing the new budget, I have identified the most compelling incentive of all: a major tax break immediately available to all New Yorkers. To be eligible, you need do only one thing: move out of New York state.
Last week I spent 90 minutes doing a couple of simple things—registering to vote, changing my driver’s license, filling out a domicile certificate and signing a homestead certificate—in Florida. Combined with spending 184 days a year outside New York, these simple procedures will save me over $5 million in New York taxes annually.
We have no way of knowing Mr. Golisano’s personal tax situation or what advice he solicited from his tax advisers. We can say, however, without hesitation, that his description of what needs to be done to become a resident of Florida and a non-resident of New York is completely incorrect. Anyone who follows his advice on how “simple” it is to change one’s residence to Florida while maintaining a home in New York will almost certainly find that upon audit, he remains a New York resident and will owe the New York taxes purportedly saved together with interest and possibly penalties.
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