The Iowa Court of Appeals has upheld a tax judgment against an I.B.P. executive for Iowa taxes, even though he now works in South Dakota.
James Schmitz was the chief operating officer of the I.B.P. plant in Waterloo. In August of 2000 he took a job at I.B.P.’s corporate offices in Dakota Dunes, South Dakota.
While he lived in an apartment in Dakota Dunes, his wife and several children remained living in their Cedar Falls home. Schmitz continued to register to vote in Iowa, maintained a bank account there, kept an Iowa driver’s license, and has several vehicles registered in Iowa. One of the vehicles has personalized Iowa license plates.
Schimtz and his wife filed for a homestead tax credit after building a new home in Cedar Falls in 2005. The Iowa Department of Revenue questioned Schmitz’s residency and then determined he owed over $290,000 in state taxes, penalties and interest from 2001 through 2005. Schmitz appealed the tax assessment, saying he was no longer a resident of Iowa.
The Iowa Court of Appeals ruled there is substantial evidence to indicate that Schmitz never abandoned his home in Iowa, and upheld the tax decision of the Department of Revenue.
See the complete court ruling here: Schmitz ruling PDF