What's happening
This bill changes the definition of a New York tax resident, excluding certain distant, infrequently used dwellings from residency status.
Why it matters
Targets infrequent, distant property use. The bill specifically carves out an exception for dwellings that are more than 50 miles from a taxpayer’s New York workplace and not used as a primary residence, meaning people with vacation homes or rarely used properties won’t be classified as residents just for owning them.
Limits tax residency for part-year/dual residents. If you work in New York but have a second home (like a weekend house or seasonal property) far from your job, staying there fewer than 90 nights a year would no longer make you a “resident” for state tax purposes, potentially lowering your New York tax bill.
Responds to common residency audit disputes. New York’s current rules have led to high-profile and contentious audits targeting people with secondary homes; this change aims to provide clearer, fairer criteria and reduce the risk of being taxed as a resident based on minimal use of a distant property.
May affect state revenue and taxpayer behavior. By narrowing who counts as a resident, the bill could decrease income tax revenue from non-domiciled individuals, while potentially making New York more attractive for those considering a secondary property in the state.
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Who cares
Taxpayers domiciled outside New York
The bill would exclude a dwelling from the permanent-abode test for resident income taxation if it is not their principal residence, is more than 50 miles from their New York workplace and is used for no more than 90 overnight stays during the taxable year.
Spouses who own, lease or maintain New York dwellings
A dwelling they provide could qualify for the exclusion when determining whether their spouse is a resident for personal income tax purposes.
New York income tax administrators
The bill would require applying the new dwelling exclusion for taxable years beginning on or after January 1, 2018.
Headline styles
Clarify Tax Residency Rules
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to ways and means
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Redefine Tax Residency Rules
In Senate Committee · Investigations And Government Operations · Sponsor Kenneth P. LaValle
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 6860 A. 8610
2017-2018 Regular Sessions
SENATE - ASSEMBLY
September 1, 2017
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to the definition of a resident for the purposes of the personal income tax
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph (B) of paragraph 1 of subsection (b) of section 605 of the tax law, as amended by chapter 28 of the laws of 1987, is amended to read as follows:
(B) who is not domiciled in this state but maintains a permanent place of abode in this state and spends in the aggregate more than one hundred eighty-three days of the taxable year in this state, unless such individual is in active service in the armed forces of the United States. For purposes of this subparagraph, a permanent place of abode shall not include a dwelling that is owned, leased, or maintained by the individual or the individual's spouse where such dwelling is not used as the individual's principal residence, is located more than fifty miles away from the individual's place of employment in this state and the individual stays overnight at such dwelling for no more than ninety days during the taxable year.
§ 2. This act shall take effect immediately and shall be applicable to taxable years beginning on or after January 1, 2018.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13369-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.