The Foreign Service Journal, January-February 2015

THE FOREIGN SERVICE JOURNAL | JANUARY FEBRUARY 2015 67 AFSA NEWS to 9.9 percent on taxable income over $125,000 for single fil- ers and $250,000 for joint filers. Oregon has no sales tax. Write: Oregon Department of Revenue, 955 Center St. NE, Salem OR 97301-2555. Phone: (503) 378-4988. Email: questions.dor@state.or.us Website: www.oregon.gov/DOR PENNSYLVANIA Pennsylvania’s tax rate is a flat 3.07 percent. Pennsylvania tax authorities have ruled that Pennsylvania residents in the U.S. Foreign Service are not on federal active duty for state tax purposes, and thus their income is taxable compensation. For non-Foreign Service state residents, there is no tax liability for out-of-state income if the individual has no permanent residence in the state, has a permanent residence elsewhere, and spends no more than 30 days in the state during the tax year. However, Pennsylvania does not consider government quarters overseas to be a “permanent residence elsewhere.” Filing a return is not required, but it is recommended to pre- serve domicile status. File Form PA-40 for all income derived from Pennsylvania sources. Write: Commonwealth of Pennsylvania, Department of Rev- enue, Taxpayer Services Department, Harrisburg PA 17128- 1061. Phone: (717) 787-8201. Email: Link through the website’s “Contact Us” tab. Website: www.revenue.pa.gov PUERTO RICO Individuals who are domiciled in Puerto Rico are consid- ered residents and are subject to tax on their entire income regardless of their physical presence in the commonwealth. Normally, they may claim a credit with certain limitations for income taxes paid to the United States on income from sources outside Puerto Rico. Taxes range from 7 percent of taxable income up to $25,000 to 33 percent of the taxable income over $61,500 for all taxpayers. Write: Departamento de Hacienda, P.O. Box 9024140, San Juan PR 00902-4140. Phone: (787) 727-2020. Email: infoserv@hacienda.gobierno.pr Website: www.hacienda.gobierno.pr RHODE ISLAND Individuals domiciled in Rhode Island are considered residents and are subject to tax on their entire income regardless of their physical presence in the state. The 2014 Rhode Island tax rate is 3.75 percent of taxable income up to $59,600 for all filers, 4.75 percent for income over $59,600 and 5.99 percent of taxable income over $135,500 for all filers. Also, a 2010 change treats capital gains as ordinary taxable income. Refer to the tax division’s website for cur- rent information and handy filing hints, as well as for forms and regulations. Write: Rhode Island Division of Taxation, Taxpayer Assistance Section, One Capitol Hill, Providence RI 02908-5801. Phone (401) 574-8829, Option #3. Email: txassist@tax.state.ri.us Website: www.tax.state.ri.us SOUTH CAROLINA Individuals domiciled in South Carolina are considered resi- dents and are subject to tax on their entire income regardless of their physical presence in the state. South Carolina’s 2014 tax rates rise in six steps from 3 percent on the first $5,760 of South Carolina taxable income to a maximum of 7 percent of taxable income over $14,400. Write: South Carolina Tax Commission, P.O. Box 125, Columbia SC 29214. Phone: (803) 898-5000. Email: iitax@sctax.org, or through the “Contact Us” tab. Website: www.sctax.org SOUTH DAKOTA There is no state income tax and no state inheritance tax. State sales and use tax is 4 percent; municipalities may add up to an additional 2.75 percent. Write: South Dakota Department of Revenue, 445 E. Capitol Ave., Pierre SD 57501-3185. Phone: (605) 773-3311. Email: Link through the website’s “Contact Us” tab. Website: www.dor.sd.gov TENNESSEE Salaries and wages are not subject to state income tax, but Tennessee imposes a 6-percent tax on most dividends and interest income of more than $1,250 (single filers) or $2,500 (joint filers) in the tax year. Write: Tennessee Department of Revenue (Attention: Taxpayer Services), 500 Deaderick St., Nashville TN 37242. Phone: (615) 532-6439. Email: TN.Revenue@tn.gov Website: www.state.tn.us/revenue