7. Domiciliary residents. The physical presence test does not apply to persons who are domiciled in Minnesota throughout the tax year.Residency is important. If you're considered a Minnesota resident, everything reported on your federal return is going to be taxable to Minnesota. Learn about Minnesota's 183day residency rule and how it impacts state income taxes. Find out who qualifies as a resident for tax purposes. In this post, we give our take on the Minnesota Department of Revenue's recent decision to tweak domicile rules for individual income taxes. In Minnesota, a domiciliary (a person who is "domiciled" in Minnesota) is taxable for purposes of income tax.