TRENTON, N.J., April 6 (UPI) -- New Jersey is facing a possible budget shortfall after the state's richest resident, hedge fund entrepreneur David Tepper, moved to Florida, state officials said.
The state's tax collections will be $162.1 million short of Gov. Chris Christie's expectations, possibly in part due to Tepper's move. State lawmakers met Tuesday to review Christie's $34.8 billion budget proposal for fiscal year 2017.
"We may be facing an unusual degree of income tax forecast risk if news reports are true that the person ranked by Forbes Magazine as the wealthiest New Jersey resident has shifted personal and business domicile to another state," said Frank Haines, the legislative budget and finance officer of the non-partisan Office of Legislative Services as quoted by NJ.com.
New Jersey depends on personal income taxes for about 40 percent of its revenues. The state's highest earners face an income-tax rate of 8.97 percent.
Tepper, who founded hedge fund Appaloosa Management in 1993, is worth up to $11.6 billion. He lived in New Jersey for more than two decades. Tepper, 58, registered to vote in Florida in October and filed documents declaring the state his permanent residence in December. Florida does not collect personal income and estate taxes.