Hudson Wis? (Minnetonka, Excelsior, Lakeland: 2014, high school, casino)

[Steamhammer]

After the year 2020 and all of its gifts I’m thinking of relocating over to Hudson from Excelsior in the next couple of years. What do you guys/gals know/heard/school systems etc. about the area- ideally outside (north) of Hudson.

[wamer27]

My brother works in the cities and has lived in the New Richmond/Houlton area and now is in Hudson. Been doing the drive for 20+ years. They moved from Houlton to Hudson within the last year to be closer to his son’s high school. The long skinny lake to me is more entertaining then Lake Minnetonka. You could take it to a casino or New Orleans and beyond if you have right boat and enjoy being on water.

[Ghengis]

Originally Posted by wamer27

My brother works in the cities and has lived in the New Richmond/Houlton area and now is in Hudson. Been doing the drive for 20+ years. They moved from Houlton to Hudson within the last year to be closer to his son’s high school. The long skinny lake to me is more entertaining then Lake Minnetonka. You could take it to a casino or New Orleans and beyond if you have right boat and enjoy being on water.

Yes, he could easily get onto the Mississippi and keep on going

[Glenfield]

We love the Hudson area and western Wisconsin in general. Schools are good, people are nice, plenty of shopping, things to do, pretty countryside. We have thought about doing the same.

If you are going to claim Wisconsin residency be sure to consult with a good tax consultant. Minnesota Revenue has a checklist of what constitutes MN residency and they may claim you as a resident for tax purposes even if your primary residence is in Wisconsin. Prepare to be sued because they like to bring these suits and then settle them out of court.

[wamer27]

Originally Posted by Glenfield

We love the Hudson area and western Wisconsin in general. Schools are good, people are nice, plenty of shopping, things to do, pretty countryside. We have thought about doing the same.

If you are going to claim Wisconsin residency be sure to consult with a good tax consultant. Minnesota Revenue has a checklist of what constitutes MN residency and they may claim you as a resident for tax purposes even if your primary residence is in Wisconsin. Prepare to be sued because they like to bring these suits and then settle them out of court.

Does WI sue people who work in Hudson and live in Lakeland? By law, shouldn’t where your primary residence is, that’s your residency? I’m not arguing with you, but tax hungry MN this doesn’t surprise me at all. Do they settle out of court because if you have a great lawyer, you’ll win?

[Steamhammer]

Originally Posted by wamer27

Does WI sue people who work in Hudson and live in Lakeland? By law, shouldn’t where your primary residence is, that’s your residency? I’m not arguing with you, but tax hungry MN this doesn’t surprise me at all. Do they settle out of court because if you have a great lawyer, you’ll win?

Thinking the same. This has got be an isolated situation.

[wamer27]

Originally Posted by Steamhammer

Thinking the same. This has got be an isolated situation.

They started cracking down on it years ago with snowbirds who go to FL and use it as primary residence for tax reasons, car tabs, etc... If you see high end cars in town or in the country with Montana plates on them, they setup a Montana LLC for cars, RV’s, yachts, planes, etc... I talked to a MT law firm about it, but didn’t do it. The MN law was vehicle couldn’t be on MN roads for more then 32 days a year with out of state plates or else it’s tax fraud. So Ferrari that you only use few weekends could fall under the 32 days.

[Steamhammer]

Originally Posted by wamer27

They started cracking down on it years ago with snowbirds who go to FL and use it as primary residence for tax reasons, car tabs, etc... If you see high end cars in town or in the country with Montana plates on them, they setup a Montana LLC for cars, RV’s, yachts, planes, etc... I talked to a MT law firm about it, but didn’t do it. The MN law was vehicle couldn’t be on MN roads for more then 32 days a year with out of state plates or else it’s tax fraud. So Ferrari that you only use few weekends could fall under the 32 days.

Interesting and very sneaky.

[Glenfield]

Originally Posted by wamer27

Does WI sue people who work in Hudson and live in Lakeland? By law, shouldn’t where your primary residence is, that’s your residency? I’m not arguing with you, but tax hungry MN this doesn’t surprise me at all. Do they settle out of court because if you have a great lawyer, you’ll win?

MN, NY, and MA all sue if people don’t meet their criteria for changing their residence. There are many, many factors and according to Minnesota state law, “a person can be considered a resident for tax purposes even if they are not considered a resident for other purposes.” They assess many factors, things like where you get medical care, where you go to church, where you have you bank accounts—there is a whole list below. Meet a certain number of those and they send you a tax bill.

The next step is you go to court. At this point, you will be more than willing to settle because it saves time, money, and legal fees. Check out the links below to see how complex it is, especially if you will be living in a border city and will have friends, family, or other ties to MN.

https://www.revenue.state.mn.us/site...sheets_fs1.pdf https://www.revisor.mn.gov/rules/pdf...008:18:54+00:0

I have family in Wisconsin and since we’ve considered moving closer to them, I have looked into this. It can be done but you must be careful. If you want to change you residence from MN and not end up with a tax liability, take my advice: get a good accountant and follow their advice very carefully.

[snebarekim]

Originally Posted by wamer27

They started cracking down on it years ago with snowbirds who go to FL and use it as primary residence for tax reasons, car tabs, etc... If you see high end cars in town or in the country with Montana plates on them, they setup a Montana LLC for cars, RV’s, yachts, planes, etc... I talked to a MT law firm about it, but didn’t do it. The MN law was vehicle couldn’t be on MN roads for more then 32 days a year with out of state plates or else it’s tax fraud. So Ferrari that you only use few weekends could fall under the 32 days.

This^.

But it goes beyond vehicles.

The tax law was further changed in 2016, as MN decided to chase a specific Florida couple over a part year residency issue, and levy a really large tax bill on them.

Basically, if you have any dwelling with a plumbed kitchen and a plumbed bathroom, MN considers you a full time resident. Despite the old "more than half the year" rule that has applied nearly everywhere else in the country up to now.

They will look into if you attend a local church, belong to MN groups or organizations, even if you get mail sent to MN for just part of the year. The state reserves the right to really dig into your personal business in order to get their tax revenue, and having legal residency in another state is a moot point.

I found a pretty sweet deal on a developed acre in Mille Lacs on the lake in early 2018 which grabbed my attention. I began to pursue it, but my brother in law (a tax guy in St Cloud) warned me off due to the possible tax issue. I would have been a 2 month of the year lake vacation guy, not a snowbird.

After calculating it could cost me over 12K a year in additional taxes, I passed on it.