A billionaire hedge fund manager's decision to quit New Jersey for Florida means the struggling state is set to miss out on a desperately-needed $140million in income tax.

David Tepper, 58, has listed a Miami Beach property as his permanent address and registered to vote in the Sunshine State as he bids to move his financial operations south.

However, with an estimated worth of $11.4billion, the decision has rocked income tax estimates in New Jersey where he has lived and operated for several decades.

David Tepper, president of Appaloosa Management, is pictured with his wife Marlene in their home in 2006. Tepper is considered one of the greatest traders of his generation and is worth an estimated $11.4billion

David Tepper bought his former boss's ocean-facing property in Sagaponack, New York, in 2010, and tore it down to build a much bigger mansion (pictured above, Tepper's completed Hamptons home)

Tepper paid $43.5million in 2010 for former Goldman Sachs CEO John Corzine's former summer home and a year later, razed the property to the ground to build a larger mansion (pictured, the estate in 2012)

The frame of the new mansion was built by around June in 2012, showing exactly how large Tepper intended the new home to be

Here, a picture from March last year shows the 11,268-square-foot mansion is complete with only finishing touches to the estate needed

Razed: The stunning mansion (pictured here before it was bulldozed) belonged to Joanne Dougherty, the former wife of Jon Corzine, once a Senator, Governor and Mayor of New Jersey. It used to rent for $900,000 a summer

Frank Haines, a budget officer with the Office of Legislative Services, said: 'We may be facing an unusual degree of income-tax forecast risk,' Bloomberg News reported.

This was due to the fact 40 per cent of the state's revenue comes from income taxes, and a third of this comes from the state's richest 1 percent.

FLORIDA TAXES EXPLAINED

For decades, Florida has had one of the lowest tax burdens in the country, according to the independent research organization Tax Foundation. The strength of Florida’s low tax burden comes from its lack of an income tax, making it one of seven such states in the U.S. The state constitution prohibits such a tax, though Floridians still have to pay federal income taxes. Florida also does not assess an estate tax, or an inheritance tax. No portion of what is willed to an individual goes to the state. Floridians no longer need to pay taxes to the state on intangible goods, such as investments. The law requiring that tax was repealed in 2007. Advertisement

By comparison, Florida has no income, estate or inheritance taxes, making it an ideal destination to avoid the levies that are compulsory elsewhere.

Mr Tepper made his fortune as a Goldman Sachs junk bond trader in the 1980s, before founding Appaloosa Management in New Jersey in the early 1990s.

He has been called one of the best traders of his generation and his $18.6billion hedge fund has routinely delivered returns so strong that the manager has periodically returned capital to investors because it was getting too large.

He worked for eight years at Goldman Sachs but left to start up his own hedge fund in 1992 after repeatedly being passed over for partnership.

It is thought he made the money by correctly predicting that the US government would not allow major banks to fold that year, compounding his profits as the banks' share prices then recovered.

In 2009, he made a trade that netted his company $7.5 billion and gave him a payout of nearly $4 billion.

'What do you think I should do with it?' he asked New York Magazine afterwards. 'I could buy an island. I could buy a private jet... I could get myself a 22-year-old!'.

Tepper was raised in a Jewish family in the East End of Pittsburgh, Pennsylvania in the Stanton Heights neighborhood. He was the second of three children born to Harry, who worked as an accountant, and Roberta, who was an elementary school teacher who taught at public schools in the city.

He is said to keep a brass replica of a pair of testicles in a prominent spot on his desk, a present from former employees. He rubs the gift for luck during the trading day to get a laugh out of colleagues.

Last year he made headlines after purchasing his former Goldman Sachs boss' home in the Hamptons, then tearing it down to build his own mansion twice the size.

He was allegedly irked that he couldn't see the ocean from every room of the sprawling 6,165 square foot estate, so he decided to build another one from the ground up, according to Curbed Hamptons.

Set on more than six acres, the Hamptons home had palatial rooms, huge marble bathrooms, a tennis court and a swimming pool.

The home had rented for $900,000 each summer season.

Mansion: Tepper and his wife Marlene lived in this sprawling home in Livingston, New Jersey

Architect Jaquelin Robertson, who built the new residence, called it a 'cedar-shingled two-story Georgian Colonial-style home'.

It comes complete with a sunken tennis court, a three car garage and second floor decks featuring a jacuzzi and covered porch.

The new property also offer views of the ocean from the first floor that were previously blocked by sand dunes.

In recent years, he has also developed a name as a philanthropist.

He and his wife Marlene have three children. After Hurricane Sandy struck, he donated $200,000 worth of Target gift cards to residents impacted by the storm.

The David A. Tepper School of Business at his alma mater Carnegie Mellon University was also established after he made a $55million donation.