Joseph E Casanova


On March 17, 2021, the Department assessed the Taxpayer for personal income tax for the 2018 tax year. On April 23, 2021, the Taxpayer filed a formal protest of the assessment. The Taxpayer argued that he was no longer a resident in 2018, having decided to move to Texas, and having only lived in New Mexico 10 days that year. The Taxpayer had begun working for a company in Amarillo in 2016, but in 2018 still owed a home in Albuquerque, had two vehicles registered in New Mexico, had a New Mexico driver’s license, and was still registered to vote in New Mexico. Personal income tax is owed when an individual is a resident of the state. Residency is established by either being physically present in the state for over 185 days or being domiciled in the state during any part of the taxable year. Domicile is the place an individual has established as their permanent home and does not require a person’s continued presence. For domicile to change, the individual must have the bona fide intention of living in new location permanently. Though the Hearing Officer determined the Taxpayer had met some criteria to establish a change of domicile, such as the amount of time spent in Texas and the fact that he was employed there, the Taxpayer had far more indications that he was still domicile in New Mexico, such as still owing a home in New Mexico, keeping his New Mexico address with financial institutions and when filing a federal return, as well as voter registration and a driver’s license. Since the Taxpayer was not able to support a change of domicile, the Hearing Officer ordered that Taxpayer was liable for the personal income tax and the protest was denied.