One man could cause a budget crisis in New Jersey — by moving out of the state.
Billionaire David Tepper has moved from New Jersey to Florida, and the loss of his income tax could leave a $140 million hole.
The 58-year-old founder of the hedge fund Appaloosa Management — who Forbes estimates is worth $11.4 billion — registered to vote in Florida in October, listing a Miami Beach condo as his permanent address, and he filed a court document in December declaring himself a resident of the tax-friendly state.
He also opened a branch of Appaloosa in South Beach, though the headquarters will remain in Short Hills, NJ.
The move could leave a devastating deficit in New Jersey’s income-tax revenue, Bloomberg News reported.
Forty percent of the state’s revenue comes from personal-income tax — a third of which is collected from less than 1 percent of taxpayers. Tepper was New Jersey’s wealthiest resident.
“We may be facing an unusual degree of income-tax forecast risk, ” Frank Haines, the budget and finance officer at the state Office of Legislative Services, told a Senate committee in Trenton Tuesday.