Steve Newmark 2013-05-03 00:21:52
Who Is an Arizona Resident? A certified tax specialist since 1991, Steve Newmark is a highly respected and experienced lawyer who practices in three legal fields: state and local taxation, estate planning and probate. Newmark has been a member of the Arizona Bar since 1977 and served as chair of the state bar tax section. Newmark is certified as a tax specialist by the Arizona Bar. For more information call (602) 274-7552 or visit www.newmarklawfirm.com. Every person is a resident of one state. DeWitt v. McFarland, 112 Ariz. 33, 537 P.2d 20 (1975). No person may be a resident of two or more states at the same time. Clark v. Clark, 71 Ariz. 194, 225 P.2d 486 (1950). In Arizona, each resident is subject to a tax measured by taxable income wherever derived. A.R.S. § 43- 102. A “resident” is a. an individual in Arizona for other than a temporary or transitory purpose; b. an individual domiciled in Arizona who is outside Arizona for a temporary or transitory purpose; or c. an individual who spends, in the aggregate, more than nine months of the taxable year in Arizona is presumed to be a resident — this presumption may be overcome by competent evidence that the individual is in the state for a temporary or transitory purpose. “Nonresident” means a person who is not a resident of Arizona. A.R.S. § 43-104. Once residency is established in Arizona, it continues until the person proves his or her intent to abandon Arizona and become a resident of another state. DeWitt v. McFarland, supra.; Jizmejian v. Jizmejian, 16 Ariz.App. 270, 492 P2d 1208 (App. 1972). This change occurs only upon the concurrence of the intent to change and acts that evidence such intent. Kauzlarich v. Board of Trustees, 78 Ariz. 267, 278 P.2d 888 (1955). The burden of proof is on the person asserting the change. Jizmejian v. Jizmejian, supra. To determine residency, a facts and circumstances test is used. Generally, a person is an Arizona resident when the person has a true, fixed and permanent home here and, if outside Arizona, intends to return here. Among the facts decision makers have looked at in residency disputes are the following: d. physical presence of the person, the person’s spouse and the person’s children in Arizona; e. registration of a vehicle in Arizona; f. bank accounts and business connections in Arizona; g. ownership of a home in Arizona; h. filing income tax returns with an Arizona address; i. registering to vote in Arizona; j. consistent use of an Arizona address on records and correspondence; and k. receipt of mail in Arizona. Whether a person is an Arizona resident has real-world consequences. For example: l. a professional athlete who plays in Arizona is subject to tax here based on his or her Arizona residency status; m. a person is eligible for unemployment compensation benefits based on his or her Arizona residency status; and n. income tax withholding depends on a person’s Arizona residency status; In addition to the reported decisions cited above, there have been numerous administrative rulings on the subject of residency. A typical case involves a woman who was found to be an Arizona resident even though she lived and worked on a cruise ship outside this state for the entire year. The reason: she was an Arizona resident before working on the ship, she was an Arizona resident after working on the ship and she could not show that, during the year she worked on the cruise ship, she intended to become a resident of another state. Redacted, Decision of Hearing Officer, Case No. 201100056-I, June 17, 2011. Similarly, in Poulos v. Department of Revenue, Arizona Board of Tax Appeals, Division Two, No. 634-88-I, March 27, 1990, a husband and wife who were Arizona residents until they abandoned their Arizona residency in 1975 were held to have become Arizona residents again in 1981 when the wife returned here because of her health problems. As a result, the taxpayers were liable for Arizona income taxes for 1982-1984. The reason: a married man is a resident of the place where his wife or family lives. When the wife became a permanent resident of Arizona in 1981, the husband became an Arizona resident as well. I hope this has been both interesting and helpful. As residency questions come up, feel free to contact me.
Published by Target Market Media . View All Articles.
This page can be found at http://digitaleditions.walsworthprintgroup.com/article/TAX+LAW+/1393871/158280/article.html.