University of Miami Business Law Review

Document Type



We live in an increasingly mobile and global society. Individuals move from one state to another for a variety of reasons. When the move is from a state which imposes income tax, particularly to a jurisdiction which does not, questions may arise about whether the individual remains a resident of the state from which he departed for income tax purposes. In the quest for revenue, certain states are aggressive in pursuing efforts to collect income tax from persons who claim to have changed their permanent residence.These states may assert that for income tax purposes the individual remains a resident of the state he left. This article examines the law applicable to a New York State resident who believes he established permanent residence elsewhere and may be unpleasantly surprised to find that he remains a New York State resident for income tax purposes. The distinction between residents and nonresidents of New York affects whether any income tax is owed to New York, and if taxes are due, whether taxes are to be computed on a resident’s entire income or a nonresident’s New York source income. While taxpayers with considerable income have the most at risk, states such as New York pursue taxpayers even when small sums are claimed due.