Golisano cites high taxes as reason for move to Florida
Joseph Spector • and Diana Louise Carter • May 15, 2009
Rochester-area billionaire Tom Golisano said he's had enough of New York's high taxes and is changing his residency to Florida — where he figures he'll save a stunning $13,800 each day in personal income taxes.
"I can put that money to a lot better use, whether it be charitable contributions or even to try to change the system," the Paychex Inc. founder and three-time gubernatorial candidate told reporters after delivering a speech Thursday at the Hyatt Regency.
Golisano, 67, owns a home in Naples, Fla., where he already spends three or four months a year, and said he had considered changing his residency for some time. But after the new state budget increased income taxes on the wealthy, "It was a very quick decision."
Changing his residency to Florida, one of seven states with no personal income tax, will save him at least $5 million a year, he said. Forbes magazine last year listed Golisano's wealth at $1.7 billion.
To qualify as a nonresident of New York, even though he will continue to own property and collect income here, Golisano will have to be out of the state at least 184 days a year.
He said the move won't impact his philanthropic efforts in western New York, his ownership of the Buffalo Sabres hockey team or his political activities. He's also still chairman of the board of Paychex, the Penfield-based business services company, though he retired as CEO in 2004.
Golisano said he planned to retain a house in Mendon but would likely sell one on Canandaigua Lake.
Being in Florida several months a year hasn't hampered his commitment to Bishop Kearney High School, said school president Donna M. Dedee. Golisano gave $5 million to the Catholic school and has been directly involved in helping to upgrade it.
"Tom has consistently given with his financial gifts and intellectual capital," Dedee said. "That vision doesn't change."
Dedee noted that Rochester is Golisano's hometown. "He still cares about us and that won't change with geography."
Last year, Golisano started Responsible New York, a political action committee that gave heavily to candidates running for state office.
Golisano has been vocal in calling out state leaders for not curbing spending, and he said Thursday that Gov. David Paterson and legislative leaders are beholden to special interests.
He said Paterson talked tough about holding down spending, but "when push came to shove, he caved" because he approved a budget that increases state spending by nearly 9 percent. The budget also increased income tax rates on New Yorkers who make more than $250,000 a year, with a higher bracket for those making more than $500,000.
New York has the highest combined local and state taxes in the nation. Golisano said he expects other wealthy New Yorkers to leave.
"The state has to develop a spending attitude that will make it competitive with the rest of the country," he said.
JSPECTOR@Gannett.com
DCARTER@DemocratandChronicle.com
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This is the natural and predictable result of Democrat/Liberal fiscal policies coming to fruition.
