New York State move, one from the highest taxed places in the world, e.g. Florida, which has a zero income tax on individuals, turns out to be very difficult in practice. The government has been employing auditors for years, who diligently check whether the citizen has actually moved or is just trying to escape taxes.
Overall, this year over 10% The people of New Jersey will face an increase in taxes already high (in California this 8.6%), a 8.3% New Yorkers will have higher fees – according to a survey conducted by the Tax Policy Centre. For this reason, those with high incomes in most U.S. states sooner or later feel like moving to the Florida tax paradise, which additionally tempts with mild winters. However, they quickly realize that tax collectors will do whatever they can to keep them in place.
Tax advisers admit that many of their customers abandon the thought of wintering in Florida when they get a list of conditions they have to meet to actually switch to new tax rules.
Methods used to detain a wealthy resident can be very aggressive: a court call to present a statement from a card, bank transactions or telephone records, sending auditors to interview a doorman or confirming doctor visits, as well as tracking the location of the taxpayer.
Relocators from the state of New York must undergo a so-called residence test that requires proof that the resident has moved to a new home without intent to return. Without such a test, a citizen is deprived of most rights in a new place – for example, he will not obtain a new driving licence or register to vote in the new district.
New York tax collectors are looking at five factors that can be called lifestyle audit: possessions that are owned by a moving person, how you spend time, where you store your favorite things – the so-called "bear test" – and for business activities and family ties. Former New Yorkers must also pass another test, called the 183-day rule.
If they officially move, but they de facto stay at home in New York, they have to prove they didn't spend more than 183 days of the year in this state. The rules are strict: days without proof can be counted to a day in New York City, or even a second within state limits can be counted as a whole day.
Computer programs make it easier for a New York State to identify taxpayers in this respect.
All these methods make many people quickly give up their intention to move. They would rather pay than expose themselves to high penalties and be subject to surveillance.