Ed & Rebecca McNair



The Taxpayers became residents of New Jersey in 1967, where they remained for over 30 years.  In 1999, the Taxpayers sold their New Jersey home and moved to New Mexico.  The Taxpayers did not retain ownership in any property or business interests in New Jersey, although Mrs. McNair received a pension from the New Jersey school system.  The Taxpayers purchased a home, registered to vote, registered their vehicle and obtained driver’s licenses in New Mexico.  The Taxpayers filed a 2001 federal income tax return listing their New Mexico address, but did not file a New Mexico return.  In 2005, based on information received from the IRS, the Department assessed the Taxpayers for New Mexico income tax on their 2001 income.  The Taxpayers protested, arguing that they were not New Mexico residents, but remained domiciliaries of New Jersey.  Based upon the actions of the Taxpayers, the hearing officer found that the Taxpayers abandoned their New Jersey domicile in 1999 and became residents of New Mexico.  The Taxpayers protest was denied.