The New York Court of Appeals reversed a decision of the New York State Tax Appeals Tribunal (the "Tribunal") and rejected years of administrative interpretation regarding New York's statutory resident test. Under New York tax law, New York may impose its personal income tax on the worldwide income of an individual who is domiciled in another state if he or she: (i) maintains a permanent place of abode in New York for substantially all of the tax year and (ii) spends more than 183 days in New York.

The New York State Department of Taxation and Finance had traditionally taken the position that the taxpayer need not actually live in the abode to meet the first prong of the test. The Court of Appeals rejected this interpretation and held that in order to qualify as a permanent place of abode there must be some basis to conclude that the dwelling was utilized as the taxpayer's residence.