Watch the New York real estate market explode over this decision:
Incredibly, a New York court recently ruled that a couple from Connecticut must pay New York state income tax based on their ownership of a beach house on Long Island. The couple was hit with a bill for $1 million in back taxes. The court affirmed an early decision, equally bizarre and potentially destructive, that contended that ownership of a vacation home that could be used year-round counts as a permanent residence, even if the owners spend little or no time there.
Experts say that the absurd ruling very likely will depress real estate values in Manhattan and the Hamptons, where many out-of-state businesspeople own small apartments or vacation homes.
I don’t own property in New York state. And now, I never will.