NY Appellate Division Rules That Owning a Vacation Home in NY is Not Enough to Prove Residency

Prior to this ruling, individuals who owned a second home in NY were usually automatically assumed by the state to have residency in NY and would therefore have to pay income taxes to NY as opposed to their actual state of residence unless they could prove that they were in NY for fewer than 183 days. This burden of proof was usually very hard to prove and most individuals ended up paying NY the taxes, however, the burden of proof has now shifted to the state. This is a huge ruling for those who currently own and those that seek to own a second home in NY because it will be much more difficult for the state to collect the income taxes from these homeowners.

Interestingly, New York will continue to consider any time spent in the state as being a full day of “living” there despite how long you were actually there for. While this decision will surely benefit those that only come to NY for vacations, the effect on those that live out of state but work in NY and own a second home here is more ambiguous. Most likely, NY will still consider them to have residency in NY because each day that one would work in NY would be considered a day of living in the state, however, there will definitely be exceptions and each case would depend on the circumstantial facts.

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Source: https://therealdeal.com/2022/07/18/court-slaps-down-tax-rule-boosting-second-home-market/