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tax on retirement stock options of a non-resident?

hello everybody, i am a retiree. in 1998, i retired from a New jersey corp which gave me stock options to retire. i left new jersey and resided in florida. i have never been to NJ since 1998. from 2000-2004 i exercise my options and was not taxed on them, however in 2005, the state of New jersey assessed me a tax despite the fact that i have never resided there for 6 years. is this proper for them to do? what should i do in order to get those taxes back?

Public Comments

1. My guess is that the stock options were earned when you were an NJ employee (resident). It is essentially still considering compensation attributable to NJ. It is irrevelant when you exercise them. I think there are a few similar cases in CA where CA former residents moved to Nevada to avoid the CA taxes on capital gain income but the CA tax board won those cases.