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Ma er of Gaied
Ne York S a e Ta Appeal Trib.
2012 NY Slip Op 09108 [101 AD3d 1492]
December 27, 2012
Appella e Di ision, Third Depar men
P blished b Ne York S a e La Repor ing B rea p rs an o J diciar La
431.
As correc ed hro gh Wednesda , Febr ar 6, 2013
In he Ma er of John Gaied, Pe i ioner, Ne York S a e Ta Appeal Trib nal e
al., Re ponden .
[*1] Hodgson R ss, LLP, Alban (Timo h P. Noonan of co nsel), for pe i ioner.
Eric T. Schneiderman, A orne General, Alban (Rober M. Goldfarb of co nsel), for
Commissioner of Ta a ion and Finance, responden .
Lah inen, J. Proceeding p rs an o CPLR ar icle 78 (ini ia ed in his Co r p rs an o
Ta La
2016) o re ie a de ermina ion of responden Ta Appeals Trib nal hich
s s ained a deficienc of personal income a imposed nder Ta La ar icle 22.
An a di of pe i ioner’s nonresiden and par – ear residen Ne York S a e a re rns
res l ed in responden Depar men of Ta a ion and Finance iss ing a no ice of deficienc of
personal income a es for he ears 2001, 2002 and 2003. The Depar men concl ded ha ,
d ring s ch ime, pe i ioner had spen more han 183 da s in Ne York and main ained a
permanen place of abode in he s a e. Th s, he as considered b
he Depar men o be a
s a or residen for p rposes of Ta La
605 (b) (1) (B). Pe i ioner challenged he
assessmen , claiming ha he did no main ain a permanen place of abode a he hree- ni
apar men proper
he had p rchased in 1999 in he Boro gh of S a en Island. Follo ing a
hearing, an Adminis ra i e La J dge pheld he assessmen . Responden Ta Appeals
Trib nal ini iall re ersed ha decision b , pon rearg men , he Trib nal, i h one member
dissen ing, re ersed i self and pheld he assessmen . This proceeding ens ed.
Ta La
605 (b) (1) (B) defines a residen indi id al as one ” ho is no domiciled in
his s a e b
main ains a permanen place of abode in his s a e and spends in he aggrega e
more [*2] han [183] da s of he a able ear in his s a e.” Pe i ioner, ho had a home in Ne
Jerse d ring he rele an
ears, did no disp e ha for hose ears he as presen in Ne
York a his b siness for more han 183 da s. Accordingl , he iss e dis ills o he her
pe i ioner main ained a permanen place of abode in Ne York p rs an o he s a e ( ee
Ta La
605 [b] [1] [B]; ee al o 20 NYCRR 105.20 [e] [1]). In making ha de ermina ion,
a arie
of fac ors and circ ms ances ma be rele an incl ding, b
no limi ed o, he e en
o hich he person challenging he assessmen paid li ing e penses, s pplied f rni re in he
d elling, had a ke , had free and con in o s access o he d elling, recei ed isi ors here,
kep clo hing and o her personal belongings here, sed he premises for con enien access o
and from a place of emplo men , and main ained elephone and ili ser ices here in his or
her name, as ell as he her he premises ere s i able for ear-ro nd se ( ee e.g. Ma e of
Schib k Ne Yo k S a e Ta A eal T ib., 289 AD2d 718, 719-720 [2001], l di mi ed 98
NY2d 720 [2002]; Ma e of E an
Ta A eal T ib. of S a e of N.Y., 199 AD2d 840, 842
[1993]; Ma e of Smi h S a e Ta Commn., 68 AD2d 993, 994 [1979]). Pe i ioner had he
b rden of pro ing ha he deficienc assessmen as improper, and credibili
de ermina ions are i hin he pro ince of he a ing a hori
( ee Ma e of S b ban
Re o a ion Co. Ta A eal T ib. of S a e of N.Y., 299 AD2d 751, 752 [2002]). So long as
he Trib nal’s de ermina ion is s ppor ed b s bs an ial e idence, e canno s bs i
eo r
j dgmen for ha of he Trib nal ( ee e.g. Ma e of Ko nbl m Ta A eal T ib. of S a e of
N.Y., 194 AD2d 882, 883 [1993]; Ma e of Smi h S a e Ta Commn., 68 AD2d a 994).
Pe i ioner es ified ha he p rchased he S a en Island proper , hich as m ch closer
o here he orked han his Ne Jerse home, as a place for his paren s o li e and as an
in es men . He s a ed ha his paren s li ed in he firs -floor apar men and ha he
dependen
pon him for s ppor . He ackno ledged ha , d ring he rele an
ere
ears, he as a
regis ered o er in Ne York. Significan l , he Trib nal de ermined ha pe i ioner, in
addi ion o o ning he b ilding, main ained a elephone and he ili ies in his o n name a
he apar men , paid hose bills as ell as all o her e penses for he apar men , re ained
nfe ered access o he apar men , occasionall slep a he apar men , failed o es ablish ha
he kep he apar men e cl si el for his paren s, and did no pro e ha he held he proper
solel for in es men p rposes. These fac al findings b he Trib nal, some of hich ere
s rongl disp ed b pe i ioner, are none heless s ppor ed b s bs an ial e idence in he
record, and s ch fac s are s fficien o s ppor he Trib nal’s de ermina ion ha pe i ioner
main ained a permanen place of abode in Ne York as ha erm has been cons r ed and
applied nder he applicable s a
e ( ee Ta La
605 [b] [1] [B]; ee e.g. Ma e of El-
Te li Commi ione of Ta a ion & Fin., 14 AD3d 808, 810 [2005]; Ma e of Schib k
Ne Yo k S a e Ta A eal T ib., 289 AD2d a 719-720; Ma e of E an
Ta A eal T ib.
of S a e of N.Y., 199 AD2d a 842; Ma e of Smi h S a e Ta Commn., 68 AD2d a 994).
E en ho gh a con rar concl sion o ld ha e been reasonable based pon he e idence
presen ed, e are cons rained o confirm, since o r re ie is limi ed and he Trib nal’s
de ermina ion is ampl s ppor ed b
he record ( ee e.g. Ma e of Ko nbl m Ta A eal
T ib. of S a e of N.Y., 194 AD2d a 883).
The remaining arg men s ha e been considered and fo nd na ailing.
Pe ers, P.J., and Rose, J., conc r.
Malone Jr., J. (dissen ing). As s a ed b
he majori , he iss e dis ills o he her
pe i ioner “main ained a permanen place of abode” p rs an o Ta La
render him a s a or residen . Significan l , he p rpose behind he s a
pro ision is o a
605 in order o
or residence
hose ho “reall and [for] all in en s and p rposes [are] residen s of he
s a e” (Ma e of Tamagni Ta A eal T ib. of S a e of N.Y., 91 NY2d 530, 535 [1998], ce
denied 525 US 931 [1998] [in ernal q o a ion marks and ci a ion omi ed]). To ha end, “[a]
permanen place of abode means a d elling place of a permanen na re main ained b he
a pa er, he her or no o ned b s ch a pa er” (20 NYCRR 105.20 [e] [1]). “Permanen l
main ained” is defined as “doing ha e er is necessar
o con in e one’ li ing a angemen
in a par ic lar d elling place” (Ma e of El-Te li Commi ione of Ta a ion & Fin., 14
AD3d 808, 810 [2005] [in ernal q o a ion marks and ci a ion omi ed; emphasis added]).
Main aining a d elling does no necessaril eq a e o li ing or residing in s ch d elling.
Here, he record clearl es ablishes ha pe i ioner p rchased he proper
loca ed in he
Boro gh of S a en Island as bo h a place for his paren s o li e and as an in es men .
Pe i ioner’s paren s, ho li e in he firs -floor apar men , are 100% dependen
pon him for
s ppor , and pe i ioner pa s all of he e penses for heir apar men . While pe i ioner
occasionall s a ed o ernigh in he apar men , he did so onl a he req es of his paren s
hen his fa her needed help d e o a medical condi ion. There as no bed for pe i ioner hen
he s a ed here, req iring him o sleep on he co ch, nor did he lea e personal i ems here. EZ Pass records s ppor he infreq enc of pe i ioner’s o ernigh s a s in Ne York. As for he
o her apar men s in he b ilding, doc men ar e idence es ablishes ha , e cep for a shor
period of ime, hose apar men s ere ren ed, and pe i ioner claimed he ren al income on his
filed a re rns.
The circ ms ances herein differ from hose cases ci ed b
he majori
in ha pe i ioner
did no change his residence from Ne York o else here; ra her, pe i ioner has li ed in Ne
Jerse since 1994.[FN*] In addi ion, al ho gh he S a en Island residence as close o his
ork place, so as his Ne Jerse home, hich pe i ioner es ified as appro ima el a half
ho r comm e hardl
a ing b an s andard. F r hermore, as no ed in he ini ial decision
of responden Ta Appeals Trib nal, his concl sion is s ppor ed b
he fac ha , af er selling
his Ne Jerse home in 2003, pe i ioner li ed i h his ncle in Ne Jerse hile he b il an
addi ional basemen apar men for himself a he S a en Island d elling before he commenced
li ing here af er he ears rele an in his case. The mere fac ha pe i ioner kep he ke s o
he o her apar men
ni s in he d elling and lis ed ha address as he address here enan
no ices sho ld be sen does no req ire a differen res l .
Considering he p rpose of he s a
or residence pro ision and mindf l ha
e need
no defer o he agenc ‘s de ermina ion beca se he s a or lang age is nei her special nor
echnical ( ee Ma e of E an Ta A eal T ib. of S a e of N.Y., 199 AD2d 840, 841
[1993]), e find ha pe i ioner demons ra ed b clear and con incing e idence ha , d ring
he rele an
ears, he did no li e in he d elling nor did he ha e an personal residen ial
in eres in ha S a en Island proper
(com a e id.; Ma e of El-Te li Commi ione of
Ta a ion & Fin., 14 AD3d a 810; Ma e of Schib k Ne Yo k S a e Ta A eal T ib., 289
AD2d 718, 719-720 [2001], l di mi ed 98 NY2d 720 [2002]; Peo le e el. Mackall
Ba e , 278 App Di 724, 725 [1951]). Considering all of he rele an fac s, e find ha he
Trib nal’s de ermina ion ha [*3]pe i ioner main ained a permanen place of abode i hin he
meaning of Ta La
assessmen
605 o be irra ional and nreasonable, and he income a deficienc
as improper. We o ld herefore ann l he de ermina ion and gran he pe i ion.
Garr , J., conc rs. Adj dged ha he de ermina ion is confirmed, i ho
cos s, and
pe i ion dismissed.
Foo no e
Foo no e *: Pe i ioner filed Ne Jerse income a re rns for he rele an
ears.
Matter of Gaied v New York State Tax Appeals Trib.
2014 NY Slip Op 01101 [22 NY3d 592]
Feb a
18, 2014
Pigo , J.
Co
of Appeal
P bli hed b Ne Yo k S a e La Repo ing B ea p
an o J dicia
La
431.
A co ec ed h o gh Wedne da , Ap il 16, 2014
[*1]
In the Matter of John Gaied, Appellant,
v
New York State Tax Appeals Tribunal et al., Respondents.
A g ed Jan a
Ma e
16, 2014; decided Feb a
f Ga ed Ne Y
18, 2014
S a e Ta A ea T b., 101 AD3d 1492, e e ed.
**22 NY3d a 594 OPINION OF THE COURT
Pigo , J.
On hi appeal, e a e a ked o con ide Ne Yo k’ ” a
o
e iden ” e (Ta La
605 [b] [1] [B]) and, mo e pecificall , he anda d o be applied hen de e mining he he
a pe on “main ain a pe manen place of abode” in Ne Yo k. Pe i ione John Gaied
[*2]con end ha he q e ion ho ld
n on he he he main ained li ing a angemen fo
e f o e ide a he d elling. We ag ee i h pe i ione and hold ha in o de fo an
indi id al o q alif a a a o e iden , he e m be ome ba i o concl de ha he
d elling a
ili ed a he a pa e ‘ e idence.
D ing he ele an ime pe iod, pe i ione
a omo i e e ice and epai b ine
o k, a di ance of abo
a domiciled in Ne Je e . He o ned an
on S a en I land, Ne Yo k and comm ed dail
o
28 mile .
In No embe 1999, he p cha ed a m l ifamil apa men b ilding on S a en I land,
loca ed in he ame neighbo hood a hi b ine . Pe i ione e ified ha hi mo i a ion fo
acq i ing he b ilding a
in e men p ope
o-fold: a a place fo hi elde l pa en
o li e and a an
.
S a ing in 1999, pe i ione ‘ pa en li ed in a fi -floo apa men and elied on
pe i ione fo hei ppo . Pe i ione claimed hem a dependen on hi fede al, Ne Je e ,
and Ne Yo k a e n . He paid he elec ic and ga bill fo he apa men , and main ained
a elephone n mbe fo he apa men in hi name. Ho e e , he in i
ha he ne e li ed a
he apa men and did no keep an clo hing o o he pe onal effec
he e; no did he ha e
leeping accommoda ion a he apa men . While he had ke
o he apa men , he con end
ha he did no ha e nfe e ed acce . He a ed a he apa men onl on occa ion, doing o
a hi pa en ‘ eq e o a end o hei medical need . On ho e occa ion , he o ld leep on
a co ch.
Pe i ione lea ed he o he
o apa men in he b ilding o enan . D ing he ea in
q e ion, 2001 h o gh 2003, he **22 NY3d a 595 filed a fede al Sched le E, hich
epo ed income and e pen e f om en al eal e a e a ocia ed i h he p ope
. He did no ,
ho e e , p od ce eco d o b an ia e he en al income o e pen e epo ed. Ne Yo k
Ci
o e egi a ion eco d indica e ha pe i ione o ed in gene al elec ion in Ne Yo k
in 2000.
In Decembe 2003, pe i ione old hi Ne Je e
e idence in o de o a i f a la ge
2002 fede al a obliga ion. He placed hi belonging in o age and a ed i h an ncle in
Ne Je e
hile eno a ing he boile oom a he S a en I land p ope
addi ional apa men , he e he began e iding in 2004, af e he a
Fo each of he a
o make an
ea a i
ea in q e ion, pe i ione filed non e iden income a
Ne Yo k. Af e an a di , he Depa men of Ta a ion and Finance i
e.
e
n in
ed a No ice of
Deficienc indica ing ha he o ed an addi ional $253,062 in Ne Yo k S a e and Ci
income a e , pl
in e e . The Depa men de e mined ha he a a ” a
o
e iden ” of
Ne Yo k i hin he meaning of Ta La
605 (b) (1) (B) beca e he pen o e 183 da
Ne Yo k Ci and main ained a “pe manen place of abode” a he S a en I land p ope
d ing ho e ea .
Pe i ione o gh a ede e mina ion of he deficienc , conceding ha he a in Ne
Yo k Ci
mo e han 183 da
d ing each ea a i
eb
challenging he de e mina ion
in
[*3] ha he main ained a “pe manen place of abode” a he S a en I land p ope
hea ing, an Admini a i e La J dge (ALJ) i
ed a de e mina ion
. Af e a
aining he No ice
(2009 WL 2491342, 2009 NY Ta LEXIS 86 [NY S Di of Ta Appeal DTA No. 821721,
A g. 6, 2009]) and he eaf e , pe i ione filed an e cep ion.
The Ta Appeal T ib nal ini iall
e e ed he ALJ’ de e mina ion on he g o nd ha
pe i ione did “no ha e li ing q a e a hi pa en ‘ apa men ” and, he efo e, he did no
main ain a pe manen place of abode (2010 WL 2801871, *8, 2010 NY Ta LEXIS 117, *23,
a ailable a h p://
.d a.n .go /pdf/a chi e/Deci ion /821727.dec.pdf a 14 [NY S Ta
Appeal T ib DTA No. 821727, J l 8, 2010]).
The Depa men mo ed fo ea g men , con ending ha he T ib nal’ deci ion failed o
ake in o acco n p eceden ha , in o de o q alif a a a o e iden nde he Ta La ,
a **22 NY3d a 596
a pa e need no ac all d ell in he pe manen place of abode, b
need onl main ain i . Pe i ione oppo ed he mo ion.
On ea g men , he T ib nal, i h one membe di en ing, g an ed he Depa men ‘
mo ion, affi med he ALJ’ deci ion and
ained he deficienc (NY S Ta Appeal T ib
DTA No. 821727, J ne 16, 2011, a ailable a
h p://
.d a.n .go /pdf/a chi e/Deci ion /821727.2.dec.pdf). The T ib nal a ed ha i
ini ial deci ion a “an imp ope depa
e f om he lang age of he a
con olling p eceden ” and concl ded ha ” he e a a pa e ha a p ope
bjec p emi e , i i nei he nece a
e, eg la ion , and
igh o he
no app op ia e o look be ond he ph ical a pec of
he d elling place o inq i e in o he a pa e ‘
bjec i e e of he p emi e ” ( d. a 15-16).
The T ib nal ejec ed pe i ione ‘ a g men ha he p emi e m be main ained fo hi
pe onal
e, finding ha he e i “no eq i emen ha he pe i ione ac all d ell in he
abode, b
impl
ha he main ain i ” ( d. a 19). The T ib nal f
he fo nd ha pe i ione
had no e abli hed ha he p ope
a main ained e cl i el fo hi pa en ‘ e. I fo nd
ha pe i ione a ed o e nigh on occa ion o ca e fo hi fa he , li ed he add e
nde hi
name fo he
ili
and elephone bill , li ed he add e
and had nfe e ed acce
a hi on he o he apa men lea e ,
o he apa men ( ejec ing, a did he ALJ, pe i ione ‘ e imon
ha he did no ha e nfe e ed acce ).
The di en
o ld ha e affi med he T ib nal’ o iginal deci ion in pe i ione ‘ fa o . He
no ed ha he T ib nal con
ed he a
e in i o iginal deci ion “in a p ac ical manne ,
gene all
efe ing o an indi id al doing ha e e i nece a
o con in e one’ li ing
a angemen in a pa ic la d elling place” ( d. a 20).
Pe i ione b o gh hi CPLR a icle 78 p oceeding challenging he T ib nal’
de e mina ion. The Appella e Di i ion, i h o J
de e mina ion, ecogni ing ha al ho gh a “con a
ba ed pon he e idence p e en ed,” i
co
econd
ice di en ing, confi med he
concl ion o ld ha e been ea onable
a ne e hele
“con
ained o confi m, ince [ he
‘ ] e ie i limi ed and he T ib nal’ de e mina ion [ a ] ampl
ppo ed b
he
eco d” (101 AD3d 1492, 1494 [3d Dep 2012]).
The di en foc ed on he legi la i e in en of he a
o
e idence
le and no ed
ha he pa amo n inq i in de e mining he he a a pa e i main aining a
pe manen **22 NY3d a 597 place of abode in Ne Yo k ho ld be he he a a pa e
main ain “li ing a angemen ” in a pa ic la d elling place ( d. a 1495). Appl ing hi
anal i , he di en
o ld ha e fo nd ha [*4]pe i ione did no li e in he d elling o ha e
an pe onal e iden ial in e e
he e, and he T ib nal’ deci ion o hold him a a e iden
a “i a ional and n ea onable” ( d. a 1496).
Pe i ione appealed f om he Appella e Di i ion’ o de , p
an o CPLR 5601 (a).
Ta La
601 and Admini a i e Code of he Ci of Ne Yo k 11-1701 impo e,
e pec i el , Ne Yo k S a e and Ne Yo k Ci pe onal income a on a e and ci
” e iden indi id al .” An indi id al ma be a ed a a ” e iden ” in one of
fi
o a , he
one being he ob io : ha he o he i domiciled in Ne Yo k, i.e. he a pa e ‘
pe manen and p ima
home i loca ed in Ne Yo k ( ee Ta La
605 [b] [1] [A]).
The al e na i e e i fo nd in Ta La
605 (b) (1) (B), hich a e a ” a o
e iden ” o omeone ” ho i no domiciled in hi a e b main ain a pe manen place of
abode in hi
a e and pend in he agg ega e mo e han [183] da
of he a able ea in hi
a e.”
Ci
I i he econd e
ha i a i
mo e han 183 da
d ing each of he ea a i
a o
Yo k.
e he e. Pe i ione concede ha he a in Ne Yo k
e. Th , he he pe i ione i a
e iden depend on he he he main ained a pe manen place of abode in Ne
In Ma e
Co
f Ta ag
Ta A ea T b. f S a e f N.Y. (91 NY2d 530 [1998]), hi
e amined he legi la i e hi o
of he a
a
e, and no ed ha he e had been
” e e al ca e of m l imillionai e ho ac all main ain home in Ne Yo k and pend en
mon h of e e
ea in ho e home . . . b . . . claim o be non e iden ” (91 NY2d a 535,
q o ing Mem of Income Ta B ea , Bill Jacke , L 1922, ch 425). We e plained ha he
a
o
e idence p o i ion f lfil he ignifican f nc ion of a ing indi id al
” eall and [fo ] all in en and p po e . . . e iden of he a e” b
ho a e
“ha e main ained a
o ing e idence el e he e and in i on pa ing a e o a non e iden ” ( d.). “In ho ,
he a e i in ended o di co age a e a ion b Ne Yo k e iden ” (91 NY2d a 535).
The Ta La doe no define “pe manen place of abode,” b
“a d elling place of a pe manen na
o ned **22 NY3d a 598 b
o ned o lea ed b
e main ained b
he eg la ion define i a
he a pa e , he he o no
ch a pa e , [ hich] ill gene all incl de a d elling place
ch a pa e ‘
po e” (20 NYCRR 105.20 [e] [1]). The eg la ion
f he p o ide ha , b a of e ample, “a me e camp o co age, hich i
onl fo aca ion , i no a pe manen place of abode” ( d.).
i able and
ed
The Ta T ib nal ha in e p e ed “main ain a pe manen place of abode” o mean ha a
a pa e need no ” e ide” in he d elling, b
onl main ain i , o q alif a a ” a
e iden ” nde Ta La
e ie i limi ed o he he ha in e p e a ion
compo
605 (b) (1) (B). O
i h he meaning and in en of he a
e in ol ed (Ma e
fSe e
o
C
. Ta
A ea T b., 89 NY2d 1020, 1022 [1997]). We concl de he e i no a ional ba i fo ha
in e p e a ion. No abl , no he e in he a e doe i p o ide an hing o he han
he[*5]”pe manen place of abode” m
ela e o he a pa e . The legi la i e hi o
a
e, o p e en a e a ion b Ne Yo k e de
ie
ha in o de fo a a pa e o ha e main ained a pe manen place of abode in Ne Yo k,
he a pa e m
,a
ell a he eg la ion ,
of he
, him elf, ha e a e iden ial in e e in he p ope
ppo
.
Acco dingl , he j dgmen of he Appella e Di i ion ho ld be e e ed, i h co
he ma e emi ed o ha co
Appeal T ib nal fo f
, and
i h di ec ion o emand o e ponden Ne Yo k S a e Ta
he p oceeding in acco dance i h hi opinion.
Chief J dge Lippman and J dge G affeo, Read, Smi h, Ri e a and Abd -Salaam
conc .
he
J dgmen e e ed, i h co
, and ma e emi ed o he Appella e Di i ion, Thi d
Depa men , i h di ec ion o emand o e ponden Ne Yo k S a e Ta Appeal T ib nal
fo f
he p oceeding in acco dance i h he opinion he ein.
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