2.01.2013

Spend most of the year in St. Pete, pay the government in St. Paul.


Minnesota's Snowbird Tax
Excerpt:


You may have heard it can get cold in Minnesota in January, or for that matter in April. Last week the temperature dropped to seven below zero in the Twin Cities, which is one reason many Midwesterners head to Florida or Arizona for the winter. But now Governor Mark Dayton wants to tax the snowbirds even if they are no longer legally state residents. "There is a snowbird tax—absolutely," the Democratic Governor told reporters the other day. "It's one of the unfairnesses that somebody can spend six months and one day out of the state and pay no state personal income taxes and come back here and take advantage of all the state has to offer for five months and 29 days. So, yes, there's a snowbird tax." Details are sketchy, but the idea is to tax these nonresidents on their income from stocks, bonds, capital gains and dividends if they spend at least 60 days in Minnesota a year. Income earned in the state is already taxed regardless of residence status, but many retirees or vacationers own a home in the state and live there only for the summer. The new tax would hit income not earned in Minnesota by those who don't currently spend the requisite six months and a day in the state to qualify as a taxable resident. So, for example, if you returned to the land of 10,000 taxes only for July and August, you'd suddenly have to pay the taxman in St. Paul on dividend checks sent to your main residence in St. Pete.
Comment: We're not leaving because 2 of our 3 kids are here (one is soon to move to either Boston or Oakland).

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