I currently rent in NYS. If I purchase a home in Florida and become a Florida resident will I have to pay NYS income taxes since I will be living in NY three or four months of the year. If not, and I move back permanently in several years can I resume my exemption status.

If you live in NYS, any income earned during that period must be reported to NYS.

Pat C - what do you mean by "exemption status" - please clarify.

If you move to FL mid-year, you will file for 2010 as a part-year resident of NYS, and pay tax to NYS on your income earned up through your move date. After that, your NYS residence is considered your second home, and you do not pay any future NY income tax UNLESS you have NY-source income (such as a part-time job while living in NY). However, what's important here is whether your intent is to move back to NY - if it is, then NY could argue that you are still an an NY resident who happens to be temporarily out of state. I suggest that when you move you do everything to show that you consider this to be a permanent relocation - get a FL drivers license, make sure to use the FL address as your home address on your tax and financial corespondence, register to vote in FL, etc. This won't preclude you from ever moving back to NY - but reinforces that your intent is to live in FL.