The Foreign Service Journal - January/February 2018

THE FOREIGN SERVICE JOURNAL | JANUARY-FEBRUARY 2018 87 PENNSYLVAN I A 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 Reve- nue, Taxpayer Services Department, Harrisburg PA 17128-1061. Phone: (717) 787-8201. Website: www.revenue.pa.gov Email: Link through the website’s “Contact Us” tab. PUERTO R I CO 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 any 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) 622-0123. Website: www.hacienda.gobierno.pr Email: infoserv@hacienda.gobierno.pr RHODE I S LAND Individuals domiciled in Rhode Island are considered resi- dents and are subject to tax on their entire income, regardless of their physical presence in the state. The 2017 Rhode Island tax rate is 3.75 percent of taxable income up to $61,300 for all filers, 4.75 percent for income over $61,300 and 5.99 percent of taxable income over $139,400 for all filers. Also, a 2010 change treats capital gains as ordinary taxable income. Refer to the tax division’s website for current 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. Website: www.tax.state.ri.us Email: Tax.Assist@tax.ri.gov SOUTH CAROL I NA 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 2017 tax rates rise in six steps from 3 percent on the first $5,860 of South Carolina taxable income to a maximum of 7 percent of taxable income over $14,650 for all filers. Write: South Carolina Tax Commission, P.O. Box 125, Columbia SC 29214. Phone: (844) 898-8542, Option 3, or (803) 898-5000. Website: www.sctax.org Email: iitax@dor.sctax.gov or through the Contact Us tab on the website. SOUTH DAKOTA There is no state income tax and no state inheritance tax. State sales and use tax is 4.5 percent; municipalities may add up to an additional 2.75 percent. Write: South Dakota Department of Revenue, 445 East Capitol Ave., Pierre SD 57501-3185. Phone: (605) 773-3311. Website: http://dor.sd.gov Email: Link through the website’s “Contact Us” tab. TENNESSEE Salaries and wages are not subject to state income tax, but for 2017 Tennessee imposes a 4 percent tax on most dividends and interest income of more than $1,250 (single filers) or $2,500 (joint filers) in the tax year. This is planned to decrease by 1 percent per year until elimination on Jan 1, 2021. Write: Tennessee Department of Revenue (Attention: Taxpayer Services), 500 Deaderick St., Nashville TN 37242. Phone: (615) 253-6000. Website: www.tn.gov/revenue Email: TN.Revenue@tn.gov TEXAS There is no state personal income tax. State sales tax is 6.25 percent with local additions adding up to 2 percent. Write: Texas Comptroller, P.O. Box 13528, Capitol Station, Austin TX 78711-3528. Phone: (800) 252-5555. Website: www.comptroller.texas.gov Email: Use email options on “Contact Us” page of the website. UTAH Utah has a flat tax of 5 percent on all income. Individuals domiciled in Utah are considered residents and are subject to Utah state tax. Utah requires that all Federal Adjusted Gross Income reported on the federal return be reported on