New York becomes aggressive in pursuit of wealthy residents fleeing high state taxes to tax havens such as Florida, with invasive audits on dental visits, veterinarian bills and even the contents of refrigerators
- Cuomo Government Attributes $ 2.3 Billion Shortfall in Budget Due to Changes in Federal Tax Legislation Limiting State Deductions to Rich New Yorkers Fleeing the State
- While the rich are trying to escape into states like Florida with no income tax, the tax collectors of the Empire State have become more aggressive and creative in the area of auditing.
- Older, wealthy residents can expect their cell phone records, dentist visits and refrigerator contents to be verified to show where their "home" is.
- The tax burden in New York is high enough to have been greeted by the mother of the representative Alexandria Ocasio-Cortez to explain her move to the Sunshine State.
Michael Nam For Dailymail.com
New York being facing a serious budget deficit of $ 2.3 billion, the state's Department of Taxes and Finance is erecting more and more relentlessly in seeking funds for wealthy residents fleeing his high taxes.
Governor Andrew Cuomo blamed the exodus of the rich because of changing federal tax laws limiting state and local deductions for New York's shortfall, according to CNBC.
Now, the lack of funds leads to more intrusive tactics to retain some of this cash, including checking cell phone call records, using social media and visiting the vet or the dentist.
"If you make a lot of money in New York and move to Florida, your chances of getting your home checked are 100%," said Barry Horowitz, a partner with accounting firm WithumSmith + Brown. "New York has always been aggressive. But it's getting worse.
The Cuomo Government Charges Increased Tax Burden After Limited National and Local Deductions Have Driven More Richest New Yorkers Out of the State, Resulting in a $ 2.3 Billion Budget Deficit
The wealthy high tax resident states, such as New York, have long fled for states like Florida, where there is no income tax on them. States.
More than half of the people audited between 2015 and 2017 lost their case for an average of $ 144,270 per paid audit, said Monaeo, a software developer of a residential residency program.
With tax collectors using more high-tech tools to verify information, a move to a state without income tax like Florida is a red flag, with New York particularly wishing to crack down on "false movements".
"Even though a small number of taxpayers are going away, this will have a huge effect on this fiscal space," Governor Cuomo said of the loss of wealthy residents who pay nearly half of the income of the province. 39; State.
Since the stake is so high, the subjective "home test" seeks to prove the residence of a person on the basis of multiple personal factors because of the complexity of a person's life situation. extremely rich.
The New York State Department of Tax and Finance has become increasingly intrusive and creative in auditing the rich who claim to have changed their residence in the state.
The state also offers a pied-à-terre tax to non-residents owning luxury apartments in New York.
An auditor checks if another state's home is bigger, more expensive than a second home in New York and if important personal belongings have also been migrated.
Visits to the dentist and the vet are also potential signs of fraud for the tax collector, Horowitz pointing out that people do not usually go out of the state to visit the dentist or to keep their pets at home. ; gap.
With auditors able to do site visits, even perishable foods can be a target of investigation.
"I had an audit during which the agent opened the refrigerator and that everything was stored for a year and a half," Horowitz told CNBC. We won the case.
Even Blanca Ocasio-Cortez, mother of the Socialist Democratic representative Alexandria Ocasio-Cortez, highlighted the heavy tax burden in New York for her move to Florida.
Blanca Ocasio-Cortez confided that she had chosen Eustis because a parent was already living here and that she paid $ 87,000 for a 860 square foot home in a quiet street that ended in a graveyard
"I paid $ 10,000 a year in property taxes in the north. I pay $ 600 a year in Florida, "she said. & # 39; There is no stress here. & # 39;
New York is also looking to cut spending by non-resident homeowners in luxury apartments, according to Bloomberg. The proposed pied-à-terre tax could generate additional revenues of up to $ 9 billion.
According to a report released this month, New York is the worst wealthy state, with a cumulative tax of 12.48% on this population. The Empire State has the highest per capita income tax collection, at $ 2,345.