A Residency Reminder: Why Documents Alone Won’t Change Your Domicile

A Residency Reminder

The New York Tax Appeals Tribunal (the “Tribunal”) recently issued a ruling impacting those seeking to establish residency in Florida while still maintaining significant ties to New York. The case reiterated that a change in domicile is about substance, not documents.

In Matter of John J. Hoff & Kathleen Ocorr-Hoff, DTA No. 850209 (N.Y. Tax Appeals Trib. Oct. 9, 2025), the Tribunal held that an individual’s ties, such as employment and steps towards making Florida a primary domicile, are self-serving and not substantive changes. The Tribunal ruled that a couple were still domiciled in New York despite their claiming Florida residency, notwithstanding their registering to vote in Florida, obtaining Florida driver’s licenses, filing declarations of domicile in Florida, executing Florida estate planning documents, and spending less time in New York than in Florida. During one of the years in dispute, the audit reflected that the Hoffs spent 186 days in New York, 131 days in Florida, and 48 days in other locations. The audit also indicated that Mr. Hoff was the president of an S corporation located in New York that he owned solely. The Hoffs also maintained country club memberships and had medical care providers in New York.

The Tribunal emphasized that residency is “simply a place where a person lives or stays for a period of time,” while a domicile is an individual’s “true, fixed, and permanent home.” Thus, an individual may have several residences, but only one domicile. A driver’s license, voter registration, or motor vehicle registration is a secondary factor in domicile and carries less weight in residency audits.

The Tribunal stated that “had other manifestations, such as a comparison of homes, business and social ties and the amount of time spent in each place been more consistent with a change of domicile, these offers of documentary proof might be more persuasive. Instead, they tend to only show the undisputed trend toward eventually relocating to Florida, while not negating the indicia that petitioners had yet to abandon New York as the place to which they intended to return.”

In New York, the taxpayers bear the burden of proving, by clear and convincing evidence, that they changed their domicile. Matter of Bodfish v Gallman, 50 AD2d at 459.

This case is consistent with the outcome of the domicile audit conducted by New York of Yankees legend Derek Jeter. While the ultimate outcome is the subject of a confidential settlement agreement, it was widely reported that the Department of Taxation was quite adamant that Mr. Jeter was a New York resident because he kept his World Series MVP trophy in his New York apartment. While “home is where you keep your MVP trophies” may not apply to everyone, the concept is worth remembering.

Conclusion

The decision in Hoff is a reminder to part-time residents that the New York State Department of Taxation and Finance, with the support of the New York Division of Tax Appeals, will enforce taxes, interest, penalties, and legal fees for filing as New York nonresidents when there is no clear establishment of ties to Florida and their New York domicile is not abandoned. While it is possible to have a residence in another state and successfully change domicile to Florida for tax purposes, you must anticipate the possibility of a residency audit. Counting days may be critical, but it is not the only factor that counts!

Thinking about establishing Florida domicile?

The attorneys at Katz Baskies & Wolf can help you evaluate your current ties and develop a strategy that withstands scrutiny. Contact us to schedule a consultation.