THESE WORKERS TRAVEL … A LOT ….
A recent report by NYU’s Mitchell Moss and Carson Qing has underscored a trend arising out of the ashes of the COVID-19 pandemic and it’s known as the new “super-commuter” – i.e., an individual who travels hundreds of miles (or states) away from their place of employment. The pre-pandemic world knew super commuters as those who traveled to work five days a week, for at least 90 minutes each way. But with the rise of hybrid work models (which provide flexibility as to “in-office” workdays), the next generation of super commuters has emerged – with many traveling only a few days a week (if not per month) into the office.
The rise of “super-commuting” is astonishing. Between 2002 and 2009, there was a 100% increase of super-commuters in Houston, 77% in Los Angeles, 60% in New York City, and 50% in Philadelphia. And all that movement may unknowingly trigger tax liability in those municipalities, often depending on the duration of an individual's stay.
Interestingly, over the years, the physical confines of what constitutes a “city” have also evolved. The expansion of boundaries has resulted in the upsurge of metro areas and mega-regions, leading to the rapid flow of people, goods and services, and innovative ideas. Thus, the implications and effects of super-commuting are certainly far-reaching.
On a local level, the interplay between super-commuting and residency standards for New York City income taxes is particularly worth noting. For income-tax purposes, a New York City resident is one who (1) is domiciled in NYC, or (2) has a personal place of abode in NYC and spends 184 days or more in the city. So if those elements are met, NYC income tax and residency requirements may be implicated. And for those seeking to secure certain real-estate property-tax abatements, and those wishing to obtain mortgages, NYC must usually be your primary residence. (Super commuters with a local pied-à-terre should be particularly mindful of these requirements.) Indeed, fulfilling these residency requisites can be higgledy-piggledy, and maintaining (or disclaiming) one’s status can prove quite challenging. But, remember, the onus is ultimately on the taxpayer, to record and maintain evidence of their whereabouts throughout the year.
As the super-commuter trend continues to evolve, familiarity and compliance with tax and residency requirements (and other laws) will be essential.
For more information on New York City’s residency requirements, go to: https://www.tax.ny.gov/pit/file/nonresident-faqs.htm#nysresident.
# # #
SOURCES
https://www.wsj.com/articles/the-math-behind-the-new-super-commute-8ca57419
https://www.tax.ny.gov/pit/file/nonresident-faqs.htm#nysresident
https://www.bloomberg.com/news/articles/2012-02-28/the-rise-of-the-super-commuter
# # #
DISCLAIMER:
THE VIEWS EXPRESSED HEREIN ARE PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DO NOT CONSTITUTE AN ENDORSEMENT OF ANY PERSON, PRODUCT, SERVICE OR OTHER PUBLICATION CITED HEREIN.
READERS ARE STRONGLY ADVISED TO CONFER WITH A LAWYER, ACCOUNTANT OR OTHER APPROPRIATE PROFESSIONAL, BEFORE TAKING ANY ACTION.