Snowbirds’ Wings Clipped by New York Tax Appeals Tribunal

In a recent decision, the New York Tax Appeals Tribunal issued a sharp reminder to ‘snowbirds’ that changing domicile is about substance, not paperwork. In Matter of John J. Hoff & Kathleen Ocorr-Hoff, DTA No. 850209 (N.Y. Tax Appeals Trib. Oct. 9, 2025), in a 24-page opinion, the Tribunal held that a couple who claimed Florida residency nonetheless remained domiciled in New York despite having taken formal steps such as registering to vote, obtaining Florida driver’s licenses, filing declarations of domicile, and spending less than 165 days in New York during one of the years at issue.

Because the primary factors remained present in New York, the Tribunal gave little weight to “formal declarations” or estate planning that purported to show Florida was their new home.

What we refer to as secondary factors of domicile, such as driver’s licenses, voter registration or motor vehicle registration, have far less weight in residency audits as courts have recognized their self-serving nature. The Tribunal went on to say, “…[H]ad other manifestations, such as a comparison of homes, business and social ties and the amount of time spent in each place been more consistent with a change of domicile, these offers of documentary proof might be more persuasive. Instead, they tend to only show the undisputed trend toward eventually relocating to Florida, while not negating the indicia that petitioners had yet to abandon New York as the place to which they intended to return.”

The Hoff decision reinforces that the Department of Taxation and Finance remains vigilant with full support from the Division of Tax Appeals in making snowbirds pay a hefty price, including tax, interest, penalties and along with their own legal fees for filing as New York nonresidents when there is not a clear establishment of ties to Florida that coincides with an abandonment of their former New York domicile.  

Unless the “primary” factors move with you, New York State can pull you back in and bludgeon you with a stiff reassessment of your tax liability.  While it remains feasible to maintain a residence in New York and successfully show that you have changed domicile to Florida for tax purposes (whether income or estate), when you own residences in both jurisdictions, there is inherent risk in not formulating a plan that meets the stringent domicile test.   

This new case does not change the interpretation of existing laws but highlights the need for competent and experienced tax counsel whose practice revolves around state and local tax.  In most instances, your accountant and general legal practitioners who dabble in tax controversy may not be giving you the best advice.  

With the political environment about to change in New York and New Jersey with many anticipating an all-out assault on high net worth taxpayers, ensure that you engage competent tax attorneys to guide you in planning a change of domicile and protect your rights in anticipating a residency audit.