Taking Full Advantage of the Lack of State Income Tax in Florida

As I'm sure you've read on this site before:  Florida has no state income tax.  The State Constitution prohibits it.  That's a big reason many snowbirds relocate to Florida.

However, becoming a Florida resident may not completely relieve you from payment of state income tax.  The state you left may not be as accommodating to your desire to live a tax-free life.  It may still subject you to income tax there if you continue to have certain connections to that state.

For example, New York is a poor loser when it comes to your taxes.  If you move to Florida and become a resident but still earn income generated from property situated in New York or from a business located in New York, you will still be subject to New York state income tax as a non-resident for that income.

If you remember from The Official Snowbird's Guide To Becoming A Florida Resident, Florida residency from Florida's point of view is determined by your intention.  If you come to Florida with the intention of making it your primary residence, then you are a Florida resident and entitled to the benefits that go along with it.  Of course you must provide clear evidence of that intention, such as obtaining a Florida driver's license, registering to vote in Florida, etc.

However, the state you departed may not look at it that way.  It usually has different criteria to determine whether or not you are no longer subject to its taxes.  This is often confusing to new Florida residents.  Even though you are considered a Florida resident by the State of Florida and entitled to the homestead exemption and other benefits, your prior state may also consider you a resident for the purpose of taxation.  New York will consider you a "statutory resident" for income tax purposes if you spend more than 183 days in New York and have a residence (even secondary residence) there.

A few of the tax-happy states of the Northeast have created the North Eastern States Tax Officials Association Cooperative Agreement on Determination of Domicile.  The name of the agreement alone makes you want to get out and move to Florida.  Under this agreement, the participating states will apply the same criteria to determine what your domicile is for tax purposes.  The factors they use are:

1. How you use your Northeastern home as compared to your Florida home.  Which one appears to be your primary residence?
2. Are you involved in a business (employment, participation in management, compensation, and ownership) in the Northeastern state?
3. In which state do you spend most of your time?
4. Where do you keep your valuables - items that you hold "near and dear" to your heart?
5. Family connections.

If the state auditor cannot determine your residency for tax purposes from the criteria above, he or she will look to other factors such as: What address do your bank statements and bills get sent to? Where are your vehicles and boats registered?  Where do you have safe deposit boxes? Where are you registered to vote?  What does your will or other legal documents say is your residence?  Some states will even analyze your phone services to see which looks more like your primary residence.

OK former New York residents, what have we learned?   If you want to escape state income tax in New York,  1) Don't spend more than 183 days in New York in a calendar year, 2) move all of your assets and connections to Florida, if possible, and 3) sever all ties to businesses and property in New York that will generate New York income.

Save The Snowbirds

Each year over 200,000 people move to Florida.  Many move here for the weather, the quality of life, or to get away from the tax burden of their former state.  Each new resident has the potential of saving thousands of dollars if they are knowledgeable about these opportunities.

Florida's economy has long depended upon its visitors and new residents.  In most areas of the state, real estate and construction are the engines that make the economy go.  By educating our new residents and informing them of strategies to break free from the tax bondage of the state they moved away from, to use the homestead exemption to reduce property taxes, and to take advantage of other money saving opportunities, we free up more money to bolster the Florida economy.  With 200,000 new residents, these savings can total tens of millions of dollars each year.

These tips and strategies are presented in detail in The Official Snowbird's Guide To Becoming A Florida Resident.  It is the only book available that addresses these issues and is designed to save a new Florida resident thousands of dollars.

It is my goal to get The Official Snowbird's Guide To Becoming A Florida Resident into the hands of at least 10% of the people moving to Florida in the next four months.  You can help by forwarding this message to anyone you know who is thinking about moving to Florida, anyone whose business is positively impacted by the new residents and any visitor who is getting tired of shoveling snow and paying taxes.

Please click the "Share Article" link below, the "E-Mail to a Friend" link at the very bottom of the article, or forward using your e-mail service (Outlook, G-Mail, etc.)

I thank you for helping to spread the word.

Qualifying For Florida In-State Tuition

My daughter has just started her senior year in high school and it seems she spends as much time doing research and filling out applications for college as she does studying her current subjects.  I have to assume that high school students all over the country are preparing for college and some are looking to Florida state schools.

Part of the planning these students should be doing is becoming a Florida resident for tuition purposes.  In-state tuition at a Florida public university or community college can save a student thousands of dollars in obtaining a degree.  Additionally, students who wish to qualify for state financial aid programs such as Bright Futures must be Florida residents.

Florida residence for tuition purposes is not the same as being a Florida resident for other purposes.  It takes more than just intent.

Section 1009.21 of the Florida Statutes outlines the requirements for establishing Florida residency for tuition purposes.  The specific requirements are contained in rules adopted by the State Board of Education and the Board of Governors for the State University System.

To qualify as a Florida resident for tuition purposes, the student must be a U.S. citizen or lawful permanent resident, and must have established physical and legal residence in Florida for at least 12 months prior to the first day of classes.

Living in or attending school in Florida will not, by itself, establish legal residence for tuition purposes.  The 12 month qualifying period must be for the purpose of maintaining a bonafide domicile.  The student who comes to Florida to enroll full-time in a Florida school as an out-of-state resident and continuously enrolls in a Florida school will not normally meet the residency requirement.  The student must be able to show that her presence and activities in Florida during the 12 month period are not primarily student related.

Students who depend on out-of-state parents for financial support (“Dependent Students”) are presumed to be residents of the same state as their parents.  These students usually cannot be Florida residents for tuition purposes.  However, if the student who depends on her out-of-state parents for support has lived in Florida for 5 consecutive years prior to enrolling at a Florida college, she may be able to qualify as a Florida resident for tuition purposes. 

Even if you do not meet the 12 month requirement, you still may qualify for an exception.  You may be able to be classified as a “temporary resident” for tuition purposes.  These exceptions are:

1. Dependent children residing continuously for at least 5 years with an adult relative other than the parent who is a Florida resident.
2. Persons married to legal Florida residents and who intend to make Florida their permanent home and who relinquish all legal ties to any other state.  This means they cannot have an out-of-state drivers license or voter registration. 
3. Persons who were enrolled as Florida residents for tuition purposes at a Florida public college, but who abandon Florida residency, can re-enroll in Florida within 12 months of the abandonment provided she continuously maintains her Florida residency while enrolled.  This exception can only be used one time.
4. Active duty members of the United State Armed Services or Florida National Guard residing or stationed in Florida.  Also, an active duty member of the U.S. Armed Services stationed outside of Florida and the spouses and dependent children can attend a public Florida college located within 50 miles of the military establishment where they are stationed, if the military establishment is located within a county bordering Florida.
5. Full time teachers and administrators of the State of Florida public school system.

A full list of the exceptions can be found in Section 1009.21 of the Florida Statutes.      

As you can see, qualifying for in-state tuition in Florida takes considerable advance planning and action.

Become a Member of an Exclusive Club

Being a Florida resident can be like belonging to an exclusive club with your Florida drivers license as your membership card. On this site, we frequently discuss the advantages of becoming a Florida resident. While many of these advantages involve legal issues such as lower taxes, creditor protection and homestead, today's post will spare you from the legaleze.

Many resorts, theme parks and attractions in Florida recognize that Florida residents are their best source of repeat customers. Because we don't have to travel as far, we tend to make more frequent trips to these facilities. As a result, they target Florida residents for some of their best deals. The following is just a sample of the benefits available to those who choose to make Florida their home.

WALT DISNEY WORLD RESORT DISCOUNTS FOR FLORIDA RESIDENTS. Walt Disney World has special theme park passes, lodging discounts and other benefits available exclusively to Florida residents. To qualify you have to book these ahead of time as a Florida resident and then provide proof of residency (Florida drivers license or identifaction card) upon arrival. For more information go to http://disneyworld.disney.go.com/florida-residents/.

UNIVERSAL. Universal Orlando Resort has special deals for Florida residents which include discounted theme park passes, Florida resident annual passes and special hotel rates. Click http://www.universalorlando.com/Tickets/Florida_Residents/floridaresidents.aspx# for further details.

BUSCH GARDENS in Tampa and SEA WORLD ORLANDO have a special deal exclusively for Florida residents. If you purchase a regular admission ticket to either theme park, that ticket will give you unlimited admission for the rest of the year to that park.

The State of Florida Tourism Industry even has its own travel planning agency. VISITFLORIDA has a wealth of information about get-away ideas, event information and travel deals. You can find special resort rates, discounts for attractions and little known vacation and travel escapes for Florida residents. Visit VISITFLORIDA at http://floridians.visitflorida.com/.

Become a Florida resident today.  Order The Official Snowbird's Guide to Becoming a Florida Resident.

Buffalo Sabres Owner Prefers Florida Residency

Buffalo Sabres owner, Thomas Golisano, announced Thursday he is changing his residence from New York to Florida, citing the burden of income and property taxes in New York. Golisano is the founder and chairman of Paychex, Inc., and a former candidate for governor of New York.

Golisano made the announcement during his speech at the 2009 Financial Executive of the Year Awards luncheon, which is co-presented by the Rochester Business Journal, showing his Florida driver’s license in a slide accompanying the presentation.

In his speech, Golisano said the move to Florida will save him more than $13,000 in income taxes each day.

This is another high profile example of the attraction of Florida residency as a solution to high taxes and poor business climates.  For the full article click the link below:

        http://www.rbj.net/fullarticle.cfm?sdid=78345