Posted on 04/19/2014 9:19:32 AM PDT by TurboZamboni
It’s getting tougher for Minnesotans to avoid the state’s taxes by spending part of the year somewhere else.
Snowbirds and high earners are discovering that they must do more than buy a condo in the Sun Belt and register a vehicle there, after a court decision last year reinforced the state’s ability to use any of more than two dozen criteria to determine who is a Minnesota resident.
“People refer to it as Hotel Minnesota,” said Matt Shea, a lawyer at Gray Plant Mooty. “You can come any time you like, but you can never leave.”
To determine tax residency, the state is looking at such things as where people vote, whether they mostly use Minnesota bank accounts and whether they go to the doctor here or in another state. Accountants and lawyers are advising clients who want to avoid Minnesota tax to sell local property and businesses if possible, and definitely to spend less time here than wherever they plan to claim as their new home state.
(Excerpt) Read more at startribune.com ...
Can’t wait to leave. Two months and counting.
IIRC, MN is now is 4th highest in the US.
Not all.
We will get a lot here in NC as "half-backs".
They move south to Florida, discover that it is hot in the summer and then move half-way back to the North...
"Half-backs"
Given the typical 183 day residency rule, what happens if one has three residences in three different States. Can one be not a resident of any State of territory?
Given the typical 183 day residency rule, what happens if one has three residences in three different States. Can one be not a resident of any State or territory?
Actually you only end up with an issue in CA during the year of split residency. I was transferred to MD from CA. I documented how much was earned in each state and filed appropriately. It helped that it was a clean break (no residual houses, cars, or voting). I kept a small account open by accident, but that was not a problem. I had adequate documentation to show that I had clearly moved.
What I did see in CA was people working in CA and declaring legal residency in NV. It works pretty well if you follow the checklists and behave yourself.
Unlike moving to a foreign country, establishing residency in Puerto Rico has some tax edges.
bookmark
My company tracks my labor hours by zip code and allocates
state income tax accordingly. I’m an Idaho resident.
That’s where my home, family, property and voting
is done. California gets a large portion of state
income taxes. Nebraska will get some this year as
well. The multi-state income tax filing is a real
pain in the butt.
First of all, THANKS to you TurboZ for keeping us updated on MN.
MN has to keep their Somali population on bennies by sharing the snowbird monies.
Massatwoshits.
Why would they live in Minnesota?
Combine that high tax scenario with global cooling and you have a recipe for declining population....
Arizona.......
You and I agree. Where you vote is where you should live......and it is where you should pay taxes
If you have multiple places that you have a place to lay your head a night you are more than ‘upper poor’. Most folks IF they even get to retire have one place they call home.... not one for the summer and one for the winter
I didn’t say it was about rich and poor. I did suggest that some folks have enough money to do as they wish.... and if you one a home for summer and a home for winter (which is what snow birds do) then you are in the status of having enough to do what you want. You are not eating casseroles, deciding whether you have enough to go to the doc, or any of a dozen other things. Understand clearly, I am not complaining about the fact that these folks have worked hard to get to where they are. they have used legal means to do so. My comments were meant to indicate that there is a difference between what is legal and what is ethical.
To bring NAFTA into this discussion is so far off the wall I won’t even comment on it.
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