1031 Exchange to Another State - NY Taxation?

[Jim D.]

I'm considering a 1031 exchange out of New York to a property closer to my location.  Does anyone know if states, especially NY, "honor" the tax deferment of a 1031 exchange?  Or will New York immediately, or sometime in the future, want their portion of tax on the gain?  And finally, if they want their tax in the future, will they consider just the gain that occurred for the property in NY or any future gains elsewhere?

In an older post, I read: "California gets you when you try and defer the gain out of state. In a nutshell, you can do it, but you must report back to California that you haven't sold the property. If you don't report, the state will assume that you sold the property and will send you a bill. If you end up selling in another state (and don't defer again), you will owe taxes in the state in which you sold the property as well as California."  If true, I wonder if other states approach this in basically the same way.

Like most folks on here, I love the 1031 and have done it before, but the state tax treatment of 1031s is little-discussed.  I suspect it may have complications for those of us that invest in multiple states.