Fleeing to Florida. A Change of Domicile is Getting Greater Scrutiny.

A SPECIAL REPORT by Tripp Scott's Zachary T. King as published in Florida Trend

Snowbirds hoping to trade life in high-tax northern states for a home in the low-tax sunshine state beware: A recent ruling from the New York Tax Appeals Tribunal regarding that state's rigorous residency audits should put those claiming Florida domicile on notice about when and how they make such claims.

In the 2025 matter of John J. Hoff & Kathleen Ocorr-Hoff, the tribunal affirmed an administrative court's determination that a couple failed to establish a change of domicile from New York to Florida for the 2018 and 2019 tax years. At issue was $60,000 in New York state personal income taxes due from those years.

Under New York law, domicile is a person's "fixed, permanent and principal home to which a person wherever temporarily located intends to return." In this case, the Hoff's assertion of their change of domicile bore the burden of proving, by "clear and convincing" evidence, both the abandonment of New York and the establishment of a new permanent home in Florida.

Courts examined both the taxpayer's lifestyle, as well as their formal declarations. The Hoffs completed many of the customary steps: they registered to vote in Florida, obtained Florida driver's licenses and registered a vehicle in the state, filed declarations of domicile, and updated estate planning documents to reference Florida law. They also limited their time in New York to fewer than 183 days, thus avoiding statutory residency status. 

The Tribunal, however, found these measures insufficient. Although they spent less than six months and a day in New York, they still spent more days in New York than in Florida during the years at issue. They maintained homes and kept country club memberships in both states. Mr. Hoff remained president and sole shareholder of a New York business from which he earned significant income, even as he was in the process of planning an eventual exit.

The couple also continued to own multiple New York rental properties, relied on a New York accountant, and had close family, including children and elderly parents, living in New York, where they celebrated major holidays.

The Tribunal found no convincing evidence that they had moved their "near and dear" possessions to Florida or meaningfully shifted the center of their personal and professional lives. The Tribunal agreed with an Administrative Law Judge that while the couple may have intended to eventually relocate permanently to Florida, their transition was gradual and incomplete during the two years in question. The primary lifestyle factors remained rooted in New York. 

Those contemplating a change of domicile should exercise comprehensive, consistent action. This should include the realignment of business interests, personal relationships, time allocation and lifestyle indicators in order to eliminate doubt sufficient to withstand challenge.

The Hoff decision reflects heightened scrutiny amid the continued wave of taxpayers seeking to leave New York and other states for lower-tax jurisdictions. This ruling serves as a clear reminder: formal documentation and declarations alone will not suffice in overriding the actions of taxpayers who haven't abandoned their long-time home for a place in the sunshine.

For more than 50 years, Tripp Scott has played a leadership role in issues that impact business.