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Old 04-13-2012, 11:15 AM
 
Location: Northern MN
3,870 posts, read 4,370,772 times
Reputation: 3157
Taxpayers who live in more than one state, such as those who spend the winter in warm weather states, may still be considered Minnesota residents based on these two rules. Taxpayers who move into or out of Minnesota would be considered part-year residents and some of their income would be taxable by Minnesota. Some taxpayers may be nonresidents of Minnesota but some income may still be taxable by Minnesota. See Part-year resident and nonresident information to make this determination.
Domicile for individual income tax

Domicile refers to the taxpayerís permanent, legal address; the place they intend to make their home for an indefinite period of time.

For most Minnesota taxpayers, residency determination is simple: they live, vote, work, attend school and occupy a home or apartment in Minnesota.

For others who may split their time between two or more states, the determination may be more difficult. Taxpayers should review the Residency Fact Sheet to make a determination about their particular circumstances.

Definition of Minnesota residency


Your living here and working here, your not a snowbird.
Minnesota New Residents If you are moving to Minnesota from another state and you plan to drive, be aware that you must obtain a license in the North Star State.
Minnesota New Residents - New MN Resident's DMV Information


BUT..

Permanent residency
Your permanent residence (domicile) is the place you intend to make your home for a permanent or indefinite period of time. It is your legal residence. Your permanent residence, once established, continues until you take steps to establish a new residence.

If you live with your spouse, both you and your spouse are presumed to have the same state of residency for income tax purposes. And even though you might split your time between more than one location or state, you both still have the same permanent residence.

Example 1. Laura lives in Minnesota for five months and in Arizona for seven months. Because she was a Minnesota resident before she began spending time in Arizona, Laura continues to be a full-year Minnesota resident until she takes steps to change her residency.

Example 2. Williamís job requires that he temporarily moves to another state for the next two years. Because he intends to stay only for a limited time (no matter how long), Williamís residency does not change. In this situation, he is considered a full-year Minnesota resident.

If, on the other hand, William moves to another state with the intention of making it his home permanently or for an indefinite time, he no longer is a Minnesota resident.

Example 3. Patrick retired, sold his permanent home in Minnesota and lives the life of a nomad, traveling around the country in a recreational vehicle. Even though he abandoned his Minnesota home, Patrick is still considered to be a full-year Minnesota resident until he establishes residency in another state.


NOW....


If you are a resident of another state, you may still be taxed as a Minnesota resident under the 183-day rule.

The 183-day rule depends on two conditions:

  • 1. You spend at least 183 days in Minnesota (any portion of a day is counted as a full day), and

    2. You or your spouse own, rent or occupy an abodeóa self-contained living unit, suitable for year-round use, that is equipped with its own cooking and bathing facilitiesóin Minnesota.

If both conditions apply, you are a Minnesota resident for the length of time the second condition applies. If the second condition applied for the entire year, you are considered a full-year Minnesota resident for income tax purposes. If it applied for less than a full year, you are considered a part-year resident.

If you maintain a home in Minnesota, but claim residency elsewhere, you must keep adequate records to verify that more than half of the year is spent out of state. Records confirming your whereabouts commonly include planners, calendars, plane tickets, canceled checks, credit card and other receipts. This rule does not apply to military personnel or to people covered under reciprocity (see Reciprocity).

Example: If you rented an apartment in Minnesota for 365 days, but only spent 183 days living in the apartment, you would be a Minnesota resident for the entire year. In this case, you would be required to pay Minnesota tax on all your taxable income received from all sources, including any income you earned while working in another state.

 
Old 04-13-2012, 11:22 AM
 
Location: Mahtomedi, MN
989 posts, read 1,765,273 times
Reputation: 307
Quote:
Originally Posted by golfgal View Post
This isn't Nebraska though, it's MN, Different states have different laws.
I was just illustrating the fact that law enforcement may or may not be on the same page as what DMV quotes over the phone.
 
Old 04-13-2012, 11:35 AM
 
53 posts, read 92,729 times
Reputation: 36
Quote:
Originally Posted by snofarmer View Post
Taxpayers who live in more than one state, such as those who spend the winter in warm weather states, may still be considered Minnesota residents based on these two rules. Taxpayers who move into or out of Minnesota would be considered part-year residents and some of their income would be taxable by Minnesota. Some taxpayers may be nonresidents of Minnesota but some income may still be taxable by Minnesota. See Part-year resident and nonresident information to make this determination.
Domicile for individual income tax

Domicile refers to the taxpayerís permanent, legal address; the place they intend to make their home for an indefinite period of time.

For most Minnesota taxpayers, residency determination is simple: they live, vote, work, attend school and occupy a home or apartment in Minnesota.

For others who may split their time between two or more states, the determination may be more difficult. Taxpayers should review the Residency Fact Sheet to make a determination about their particular circumstances.

Definition of Minnesota residency


Your living here and working here, your not a snowbird.
Minnesota New Residents If you are moving to Minnesota from another state and you plan to drive, be aware that you must obtain a license in the North Star State.
Minnesota New Residents - New MN Resident's DMV Information


BUT..

Permanent residency
Your permanent residence (domicile) is the place you intend to make your home for a permanent or indefinite period of time. It is your legal residence. Your permanent residence, once established, continues until you take steps to establish a new residence.

If you live with your spouse, both you and your spouse are presumed to have the same state of residency for income tax purposes. And even though you might split your time between more than one location or state, you both still have the same permanent residence.

Example 1. Laura lives in Minnesota for five months and in Arizona for seven months. Because she was a Minnesota resident before she began spending time in Arizona, Laura continues to be a full-year Minnesota resident until she takes steps to change her residency.

Example 2. Williamís job requires that he temporarily moves to another state for the next two years. Because he intends to stay only for a limited time (no matter how long), Williamís residency does not change. In this situation, he is considered a full-year Minnesota resident.

If, on the other hand, William moves to another state with the intention of making it his home permanently or for an indefinite time, he no longer is a Minnesota resident.

Example 3. Patrick retired, sold his permanent home in Minnesota and lives the life of a nomad, traveling around the country in a recreational vehicle. Even though he abandoned his Minnesota home, Patrick is still considered to be a full-year Minnesota resident until he establishes residency in another state.


NOW....


If you are a resident of another state, you may still be taxed as a Minnesota resident under the 183-day rule.

The 183-day rule depends on two conditions:

  • 1. You spend at least 183 days in Minnesota (any portion of a day is counted as a full day), and

    2. You or your spouse own, rent or occupy an abodeóa self-contained living unit, suitable for year-round use, that is equipped with its own cooking and bathing facilitiesóin Minnesota.

If both conditions apply, you are a Minnesota resident for the length of time the second condition applies. If the second condition applied for the entire year, you are considered a full-year Minnesota resident for income tax purposes. If it applied for less than a full year, you are considered a part-year resident.

If you maintain a home in Minnesota, but claim residency elsewhere, you must keep adequate records to verify that more than half of the year is spent out of state. Records confirming your whereabouts commonly include planners, calendars, plane tickets, canceled checks, credit card and other receipts. This rule does not apply to military personnel or to people covered under reciprocity (see Reciprocity).

Example: If you rented an apartment in Minnesota for 365 days, but only spent 183 days living in the apartment, you would be a Minnesota resident for the entire year. In this case, you would be required to pay Minnesota tax on all your taxable income received from all sources, including any income you earned while working in another state.

Wow! Thank you! This was awesomely informative, but still slightly confusing! Lol. So, if I understand correctly, I would still retain "permanent residency" in Oklahoma because I will not take steps to change it, but would be taxed as a full-year resident of Minnesota (which I obviously expected)? Okay, so I get the tax implications here. Also, I would be living AND working in MN, so I technically wouldn't be a snowbird, but if I retain "permanent residency" in Oklahoma, wouldn't I be able to keep my Oklahoma driver's license? That's also what I got out of my phone call to the DMV in Chaska, but as someone else commented, I don't want the sheriff knocking on my door one day for having out of state license plates. Lol.
 
Old 04-13-2012, 11:50 AM
 
Location: Northern MN
3,870 posts, read 4,370,772 times
Reputation: 3157
Quote:
Originally Posted by Clifford63 View Post
I was just illustrating the fact that law enforcement may or may not be on the same page as what DMV quotes over the phone.
This is true,

Mn watches lic plates closely.
They keep an eye out for out of state plates that are at a residency all the time.

Some will try to get Wisconsin plates, there cheaper and Wi does not require INS.

To a cop it looks looks your trying to get away with something when they see your out of state plates and your here all the time.

It's a question that can make a taxpayer's blood boil. Is the driver of a vehicle from another state just visiting or living here and not paying their fair share?


Most Minnesota vehicles, including cars, pickups and other trucks, and buses, require two license plates to be displayed―one in the front and one in the back of the vehicle.
Some vehicles in Minnesota, such as motorcycles, mopeds, and dealer cars, as well as trailers, require only one rear-displayed license plate. Other vehicles that may display only a rear license plate include the following:
  • Model 1972 or earlier vehicles that are used for regular driving
  • Vehicles defined as "pioneer, classic, or street rod" that are used for regular driving
  • Vehicles registered as "pioneer, classic car, collector, or street rod"
 
Old 04-13-2012, 12:41 PM
 
Location: South Minneapolis
2,567 posts, read 1,677,133 times
Reputation: 3153
Quote:
Originally Posted by snofarmer View Post
It's a question that can make a taxpayer's blood boil. Is the driver of a vehicle from another state just visiting or living here and not paying their fair share?
My point exactly.
 
Old 04-13-2012, 03:37 PM
 
Location: Saint Paul, MN
190 posts, read 112,859 times
Reputation: 166
I don't really see a big issue with her not "paying her fair share". Regardless of her declared state residency, she will still have to pay MN state income tax on all income made in the state. In fact, if OK has a state income tax, she will have to pay both MN and OK income tax if she maintains her OK state residency. This fact alone would push most people to give up their old state residency to save on taxes (if all their income comes from the new state).
 
Old 04-13-2012, 05:38 PM
 
53 posts, read 92,729 times
Reputation: 36
Quote:
Originally Posted by aus1ander View Post
I don't really see a big issue with her not "paying her fair share". Regardless of her declared state residency, she will still have to pay MN state income tax on all income made in the state. In fact, if OK has a state income tax, she will have to pay both MN and OK income tax if she maintains her OK state residency. This fact alone would push most people to give up their old state residency to save on taxes (if all their income comes from the new state).
This is exactly what I was thinking, but I decided not to post it for fear of another rude comment. I'll be paying income taxes to Minnesota as well as sales tax on anything I buy. The license & license plate change fees total far less than $100. So, the state may be missing out on my less than $100, but how much does it stand to gain from me as far as income tax and sales tax?

Also, in reference to what another poster mentioned about this making a "tax payers blood boil" - I'm a Oklahoma tax payer and many folks here register their cars in Kansas because it's cheaper. It's never even crossed my mind to be upset about this. It's not like my tax dollars are paying their fees for them (like welfare) - they're paying their own fees, just to another state, so what's all the hoopla about? There are much bigger things to worry about in life.
Furthermore, it's not like I'm getting a free ride on registration fees here. I'm not just NOT paying. I'm just paying to a different state.
 
Old 04-13-2012, 05:54 PM
 
Location: South Minneapolis
2,567 posts, read 1,677,133 times
Reputation: 3153
Quote:
Originally Posted by Klhbrown View Post
Furthermore, it's not like I'm getting a free ride on registration fees here. I'm not just NOT paying. I'm just paying to a different state.
Isn't that kind of like taking groceries from one store and then paying another? Wouldn't the store where you got your groceries have a reasonable expectation that you pay them for your groceries? And wouldn't the other people who shop at that store have a reasonable concern, since if you pay another store, they have to pay higher prices to make up for the shortage? These licensing fees may seem like small amounts, and they may or may not be fair, but they do cover expenses in the state in which you will be living-- whether permanently or temporarily-- so I am not clear on why it is unreasonable to expect that you pay these fees.
 
Old 04-13-2012, 07:38 PM
 
Location: Northern MN
3,870 posts, read 4,370,772 times
Reputation: 3157
Back to the car lic, and registration.

" I'll be paying income taxes to Minnesota as well as sales tax on anything I buy. The license & license plate change fees total far less than $100. So, the state may be missing out on my less than $100, but how much does it stand to gain from me as far as income tax and sales tax?"


The rub. MN will tax you 1% of the cost of your vehicle.
Your tabs/plates could easily be $300 or more a year depending on it's value.
 
Old 04-13-2012, 07:46 PM
 
53 posts, read 92,729 times
Reputation: 36
Quote:
Originally Posted by Glenfield View Post
Isn't that kind of like taking groceries from one store and then paying another? Wouldn't the store where you got your groceries have a reasonable expectation that you pay them for your groceries? And wouldn't the other people who shop at that store have a reasonable concern, since if you pay another store, they have to pay higher prices to make up for the shortage? These licensing fees may seem like small amounts, and they may or may not be fair, but they do cover expenses in the state in which you will be living-- whether permanently or temporarily-- so I am not clear on why it is unreasonable to expect that you pay these fees.

Do you not understand the point of all of this? Because I'm not a permanaent resident! I believe that's what all of these responses from others have pointed out as well as what the DMV has pointed out.
To compare it to stealing groceries is laughable.
How are you paying to make up my shortage? I'm not creating a shortage because I'm not a resident that's not paying because I'm not a resident at all! You might as well say that your taxes are higher because other states are occupied. Why, if every person from every state moved to Minnesota instead of "paying their own groceries stores," just think of all the precious revenue you'd have.
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