State & Local Tax Blog

Does Derek Jeter Live in NYC or Florida?

According to this article in the New York Times, he says he lives in FL, but the evidence may indicate he lives in NY.

“New York State tax officials say that the Yankee star Derek Jeter claimed he lived in Florida to avoid paying city and state income taxes for several years, when he was actually living in New York, according to documents filed last week with an administrative law judge.

“Mr. Jeter, one of the highest-paid players in baseball, filed nonresident income tax returns to New York State between 2001 and 2003, claiming that he lived primarily at his off-season home in Florida, which, unlike New York, has no state income tax.

“But officials at the State Division of Taxation and Finance argued that Mr. Jeter’s primary residence during those years was in New York, where he owns an apartment in the Trump World Tower, near the United Nations, and has rented or owned other living space as well.
Mr. Jeter’s salary was $14 million in 2003, along with an unknown fraction of the signing bonus of $16 million he was to be paid between 2001 and 2008. New York State’s top personal income tax rate for residents was 7.7 percent in 2003, and the city’s was 4.45 percent, including a temporary surcharge imposed after the attack of Sept. 11, 2001.

“Among the evidence cited by officials were Mr. Jeter’s business ties outside Florida, the personal items “near and dear” he keeps in his New York apartment, and his “public statements regarding his desire to be in New York,” according to the filings. “

“According to the documents, state tax officials are not disputing that Mr. Jeter’s primary residence was in Florida before 2001 or after 2003. But they claim that Mr. Jeter established his home in New York at the beginning of 2001, the year he bought the apartment in the Trump World Tower for a reported $13 million. According to state officials, he lived there — for tax purposes, at least — for the next two years as well.

“Besides unspecified business ties and public statements made by the baseball star, state officials also cited “holidays spent in jurisdictions other than Florida” and the fact that Mr. Jeter was “immersed in the New York community.” “

We’ll keep you posted.

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