Taxes are never fun but unexpected taxes are especially annoying. If a Florida resident sells a painting through a worldwide auction house, which holds the auction in New York, does he need to pay New York income taxes? If a New Hampshire resident lends a painting to a New York museum, does she have to pay New York taxes?
In both cases, the answer is … “Maybe.”
How is this possible? How could New York or any other state impose income or use taxes in these situations?