Who Qualifies as a Resident of Minnesota?: Presumptions in Minnesota Law

This is the second article in a series dedicated to the rules regarding who qualifies as a “resident” of the State of Minnesota for tax purposes. Status as a resident of Minnesota is important as all Minnesota residents are subject to Minnesota individual income tax, gift tax, estate tax, and sales and use tax. Non-residents are usually not subject to these taxes unless they purposely avail themselves of Minnesota taxes.

This article provides a brief overview of some of the presumptions in Minnesota law relating to when a person is a “resident” of Minnesota.

Minnesota Rule 8001.0300, subpart 2, lists seven different presumptions to assist in determining whether an individual is a “resident” of Minnesota. These seven presumptions are:

1. The domicile of a single person is that person’s usual home.
2. A person who leaves home to go to another jurisdiction for temporary purposes is not considered to have lost his/her domicile.
3. A person who moves to another jurisdiction with the intention of remaining there permanently or for an indefinite time as a home, has lost his/her domicile.
4. A person who leaves Minnesota to accept a job assignment in a foreign nation has not lost his/her domicile.
5. A person has the same domicile as his/her immediate family.
6. The domicile of a spouse is the same as the other spouse unless there is affirmative evidence to the contrary or unless the husband and wife are legally separated or divorced.
7. The domicile of a minor child who is not emancipated is the same as the child’s parents’ domicile or the same domicile of the parent who has legal custody of the child.
8. These presumptions are rebuttable, i.e. a person is not automatically deemed a resident of Minnesota because the presumption indicates they are a resident of Minnesota. If a presumption implicates an individual is a resident of Minnesota, and the Minnesota Department of Revenue audits the individual to determine residency status, the individual must provide evidence to rebut the presumption. Evidence to rebut the presumption includes facts indicating that the individual abandoned Minnesota, and facts indicating that the individual established domicile in the new state.