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In order to establish and maintain residency for tax purposes outside of Minnesota, a taxpayer must meet both of two tests-a “physical presence” test, and a subjective “intent” test.

(A)  Physical Presence.  If a person is in Minnesota for 183 days and maintains a place of abode in Minnesota, he or she is a Minnesota resident regardless of the factors in the subjective “intent” test, below.  In order to meet the Physical Presence test, a person must not be physically present in Minnesota for any part of 183 days per year.

(B) Subjective Intent Test.  The person must also meet a sufficient number of the following factors that, in the opinion of the Minnesota Revenue Department, demonstrate that the person has an “intent” to maintain a residency outside of the State of Minnesota.  Briefly, these factors are as follows:

  • Location of domicile in previous tax years.
  • Where the person is registered to vote.
  • Status as a student.
  • Classification of employment as temporary or permanent.
  • Location of employment.
  • Location of newly acquired living quarters, and whether owned or rented.
  • Present status of former living quarters (whether former living quarters has been sold, offered for sale, rented, or available to another to rent).
  • Whether homestead status has been requested and/or obtained for property tax purposed on newly purchased living quarters and whether the homestead status of the former living quarters has not been renewed.
  • Ownership of other real property.
  • Jurisdiction in which any valid driver’s license was issued.
  • Jurisdiction from which any professional licenses where issued.
  • Location of the person’s union membership.
  • Jurisdiction from which any motor vehicle license was issued and the actual physical location of the vehicles.
  • Whether resident or nonresident fishing or hunting licenses purchased.
  • Whether an income tax return has been filed as a resident or nonresident.
  • Whether the person has fulfilled the tax obligations required of a resident in the new state.
  • Location of any bank accounts, especially the location of the most active checking account.
  • Location of other transactions with financial institutions.
  • Location of the place of worship at which the person is a member.
  • Location of business relationships and the place where business is transacted.
  • Location of social, fraternal, or athletic organizations or clubs or in a lodge or country club, of which the person is a member.
  • Address where mail is received.
  • Percentage of time (not counting hours of employment) that the person is physically present in Minnesota.
  • Location of jurisdiction from which unemployment compensation benefits are received.
  • Location of schools in which the person or the person’s spouse or children attend.
  • Statements made to an insurance company concerning the person’s residence and on which the insurance is based.

No one factor, or group of factors, is determinative in demonstrating the requisite intent.

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