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States have 2 tests that they use to determine residency.  They have a subjective and objective test that taxpayers may use to prove their residency status. The objective test is similar to the federal Substantial Presence Test and the subjective test is the concept of a domicile.

What’s a Statutory Resident and a Domicile?

Statutory Resident

A New York resident by law because you stayed in the state to long.  You’re now screwed.  New York will be sending their bill soon.

Domicile

A domicile is the place that an individual intends to be his or her permanent home—that is, the place to which the individual intends to return whenever the individual may be absent. If a person has two or more homes, that person’s domicile is the one that he or she regards and uses as his or her permanent home. A domicile once acquired is presumed to continue until a new domicile is definitely established (NYCRR 20 §105.20(d))

Objective Test for Statutory Residents

You’re a New York resident if:

• You spent more than 183 days in the state during the tax year (members of the Armed Forces are exempt); or
• Your domicile is in New York State. (N.Y. Tax Law  §605(b))
  • Exceptions – You don’t have to pay NY taxes if you meet one of the two following tests:
    • Test A:
      1. You didn’t have a permanent place of abode in New York State this year;
      2. You had a permanent place of abode outside New York State this year; and
      3. You spent 30 days or less in New York State this year. (NYCRR 20 §105.20(b))
    • Test B:
    1. You were in a foreign country for at least 450 days during any period of 548 straight days; and
    2. You spent 90 days or less in New York State during this 548-day period, and their spouses (unless legally separated) or minor children spent 90 days or less in New York during this 548-day period; and
    3. During the nonresident portion of the tax year in which the 548-day period either started or ended, the taxpayers were present in the state for no more than the number of days which bears the same ratio to 90 days as the number of days in such portion of the tax year bears to 548. (N.Y. Tax Law §605(b)(1)(a))

Subjective Test – NYS Domicile

Domicile is the place that you intend to be your permanent home.  But, home is a subjective word because you could have multiple apartments or houses.  When you live in multiple places, you must use the subjective test to determine where your domicile is.  The examples of factors that determine your domicile are the following:

Home (location; whether owned or rented; use; size and value);

Time spent (whether retired or actively involved in business; travel; overall lifestyle);

Items “near and dear” (location of items of significant sentimental value or items that enhance the quality of life);

Active business involvement; and

Family connections (when the first four factors are not conclusive).

Conclusion:

Welcome to your nightmare.  Notice that this is the cliff notes version of the rules.  So, the moral of the story is that if you break any of these rules, then you are screwed!