Last week, the Division of Tax Appeals addressed the issue of what constitutes a day in New York in the Matter of John and Janine Zanetti, DTA No. 824337 (May 23, 2013). Mr. & Mrs. Zanetti claimed to be nonresidents of New York. While they conceded to maintaining a permanent place of abode in Manhasset, New York, they contended that they were not physically present in New York for more than 183 days during 2006.
Mr. Zanetti was in New York for 167 full days and an additional 26 days traveling in or out of New York. He argued that he was out of the State for a total of 334.3 hours during those 26 travel days, which if aggregated would only constitute 13.929 days physically present in New York State.
The Administrative Law Judge rejected the taxpayer’s argument, citing the longstanding rule that physical presence for any part of any day counts as a day in New York. While there is a limited exception for physical presence in New York solely for the purpose of travel through the State or to board a plane, that exception does not apply when the taxpayer departs from and returns to the State for the remainder of the day.
Of course, the bottom line in this case is that as statutory residents, all of the taxpayers’ income for the 2006 year, regardless of where it was earned, is subject to New York State income tax.
Read more about NY residency issues here.
Submitted by Christopher Bourell on