Commissioner of Revenue v. Stamp

• Decision Date: 29 August 1980
• Docket Number: No. 50689.,50689.
• Citation: Commissioner of Revenue v. Stamp, 296 N.W.2d 867 (Minn. 1980)
• Parties: The COMMISSIONER OF REVENUE, Respondent, v. Charles E. and Doris STAMP, Relators.
• Court: Minnesota Supreme Court

296 N.W.2d 867 (1980)

The COMMISSIONER OF REVENUE, Respondent, v. Charles E. and Doris STAMP, Relators.

No. 50689.

Supreme Court of Minnesota.

August 29, 1980.

Best & Flannagan, Minneapolis, for relators.

Warren Spannaus, Atty. Gen., St. Paul, for respondent.

Considered and decided by the court en banc without oral argument.

WAHL, Justice.

Certiorari to the Tax Court to review a decision affirming an order of the commissioner of revenue which imposed additional income tax on Charles E. and Doris Stamp for the 1975 tax year. The sole issue on appeal is whether the Tax Court erred by concluding that taxpayers were Minnesota residents for income tax purposes during the relevant time period. We affirm.

Taxpayers had been Minnesota residents since 1943 when Charles Stamp accepted employment as a pilot for Northwest Orient Airlines assigned to the Minneapolis-St. Paul station but had planned for some time to move to Florida once their children were grown. In the late fall of 1974 they purchased a condominium in Florida for $30,000. They took possession on December 30, 1974, furnished the condominium with items purchased in Florida, and resided there until late April or early May 1975 when they returned to Minnesota. During their stay in Florida taxpayers continued to own a home near Lake Minnetonka which had an assessed value of $45,460. In January 1975 they applied for Florida homestead classification of their condominium and notified Minnesota officials that they were no longer homesteading their Minnetonka property. Taxpayers rented out their Minnesota home for the first 3 months of 1975, receiving as rental payment of utilities and maintenance costs. Taxpayers remained in Minnesota from May until December 1975 but did not lease out their Florida condominium in their absence. During the whole of 1975 Doris Stamp spent approximately 7 months in Minnesota and 5 in Florida; Charles Stamp spent approximately 115 days in Minnesota, 130 days in Florida, and 120 days working and flying in other states and countries.

Throughout 1975 taxpayers retained financial ties with Minnesota. They continued their principal checking and savings accounts at Wayzata Bank and Trust and obtained a loan from that institution in December 1975. Charles Stamp also kept an account with the Northwest Airlines Credit Union in Minnesota. Outside Minnesota taxpayers maintained an investment account with a Boston financial institution and they opened a savings account in Florida. Doris Stamp continued to maintain charge accounts with the Minneapolis Dayton's and Powers stores and did not open accounts at Florida stores. Taxpayers' cancelled checks reveal numerous payments to Minnesota payees, including larger sums for utilities, newspapers and medical expenses than expended in Florida.

Taxpayers also maintained social affiliations in Minnesota. They were full resident members of the Minneapolis Golf Club throughout 1975 and incurred bills there of $1,772.10. They also joined a Florida golf club and social organization where they spent $153.01. Taxpayers continued membership in a family flying club and, although they did not participate in the club's activities in 1975, they paid approximately $200 to the club. Doris Stamp periodically attended the Wayzata Community Church and contributed $322. She also attended church in Florida.

During 1975 taxpayers owned two automobiles, one located and licensed in Minnesota and one located and licensed in Florida. Taxpayers obtained Florida driver's licenses in January 1975 and allowed their Minnesota licenses to expire.

Taxpayers last voted in Minnesota in 1974. In January 1975 they registered to vote in Florida and voted there in local elections.

Charles Stamp testified that his intention in buying the Florida condominium was to transfer his domicile from Minnesota to Florida. He stated that his reasons included income tax advantages, as well as climate and opportunity to play more golf. Late in 1974 he contacted his employer and filled out forms required to stop the withholding of Minnesota income...