Derek Jeter is a snowbird, splitting time between his home in Florida and his apartment in New York City. By doing so, he may be saving millions in taxes.

If it's the Tampa, Fla., home then Jeter is in the clear, and doesn't owe the likely hundreds of thousands of dollars -- maybe even millions -- in back taxes that the New York State Division of Tax Appeals is demanding.

The state is disputing Jeter's claims that his primary residence is -- and always has been -- in Florida, where there is no personal income tax and even a homestead exemption, which decreases homeowners' property taxes.

"It's reasonably common [for people to escape to Florida]," said Daniel A. Weiss, a principle at the law firm of Tannebaum Weiss in Miami. "There's no personal income tax in Florida, and what that means is that we get a lot of people who retire here."

Article here.

What does that mean no personal income tax??
Nobody in florida pays taxes or what exactly?

Fr_Chuck

Fl, I will assume is like Tennessee, there is no real personal property tax on cars, boats and the such, next there is no state income tax, only Federral taxes to pay. All the taxes the state gets is from sales tax and property tax ( with a very nice homestead exemption) for example my 100,000 home in TN had a yearly tax of about 350 dollars for all of its property tax. A good example of how the state can operate without over taxing its citiznes, and how the federal government could do the same thing if they wanted.

nikkicute

Ohhhh, I think I get it now.
You don't pay state tax only Federal taxes, ok I
got that part. lol

All the taxes the state gets is from sales tax
-- Which is when anyone purchases anything right?

And property tax -- which is your home but not cars, boats etc..

What is a homestead exemption

$350 dollars in taxes on a $100,000 home sounds great!!

As you can see I am not a home owner yet.
Still living in an apt so I have no clue how all
of this works.

Just wanted to know why NY wants him to pay taxes. Now I see why!!

So if you lived in NY you have to pay State, Federal and property taxes on your home, cars and boats? Why would you have to pay property tax on a car? It's not land or anything, ya know what I mean?

If you lived in NY in a $100,000 home how much do you think you'd be paying in taxes?

nikkicute

Page two article

"New York is very aggressive in pursuing this because there are high-earners in the state and quite often these folks retire to low or no tax jurisdictions like Florida," said Bob Lass, a tax partner at Perelson Weiner LLP. "In the case of a Derek Jeter or other people who spend time in and out of New York the state has been very diligent and quite successful in pursuing [these claims]."

"New York is very aggressive because the stakes are so high -- they have a very sophisticated program and even monitors people's credit card usage and utilities. [Jeter] isn't getting treated differently," said Lass.

Oh my goodness!!
Monitor your credit card and utilites!!
Wow!! Thats nuts!!

I thought he lived in NY anyway...
I'm thinking all the ballplayers live there.

P.S.

Barry Bonds is guilty!!!

Fr_Chuck

Yes, NY has farily loose laws on what is a resident, "ie" remember how Hilary was able to say she was a resident very easily to run for office.
so they are viewing his living there under thier laws, they don't care what Fla law says. first in NY my 3 bedroom brick on a acre of land would be closer to a 1,000,000 home most likely not a 100,000 home.
But property taxes there would be most likely at least triple on the same valure, plus there is the issue of personal property tax on all of the autos they own, airplanes, boats and so on. Next is the issue of income tax, if a person takes money out of thier retirement money, that is all taxable so all of this adds up to big money.

nikkicute

Wow, BIG money indeed.
THANK YOU!! For answering my question.
I'll stay right here in Wisconsin for now.

Fr_Chuck

I know I just moved from TN to GA, and just the taxes invovled takes a large chunk of my income compaired to TN.