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New Jersey has to rethink its budget because one guy moved


Linette Lopez

If you move away from your home state, some friends might throw you a party. Maybe you’ll get a happy-hour discount at your local bar.

If you’re really a big deal, you might get to throw out the first pitch at your local minor-league baseball team’s next game.

Other than that, everything will be pretty much the same after you’re gone.

That is, of course, unless you’re billionaire David Tepper.

If you are him, then when you move away you have the potential to send your whole state ( in this case New Jersey) into red-alert mode.

Tepper, the founder of the hedge fund Appaloosa Management, moved to Florida last fall. This, according to Bloomberg, has leaders of his former state very concerned.

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N.J.’s wealthiest resident decamps to tax-friendly Florida


New Jersey Stuck on Stupid 

Lifestyle Deal’BLOOMBERG NEWS |

New Jersey lost its richest resident late last year when billionaire David Tepper decamped to the tax friendly climes of Florida.

Tepper registered to vote in Florida last October, listing his residence as a Miami Beach condominium, and followed up in December by filing a court document declaring that he is now a resident of the state. He also carried out a business reorganization on Jan. 1 that relocated his Appaloosa Management from New Jersey to Florida, which is free of personal income and estate taxes.

The move could save Tepper hundreds of millions of dollars in state taxes several years from now. Florida has been pitching itself as a warm-weather tax haven to hedge fund managers in the Northeast, some of whom face a 2017 deadline to pay taxes on billions of dollars in performance fees that they had kept offshore for years. A Florida residence could offer partial relief to New York and New Jersey money managers who face the prospect of surrendering at least half of the deferred money to federal, state and local taxes.

“Anyone who has a large deferral coming due in 2017” is thinking about ways of reducing the tax hit, said Anthony Tuths, a tax attorney in the New York office of Withum who advises alternative investment funds. “What is easier than packing up your house in New York City and moving down to Miami?”

‘Lifestyle Deal’