The Foreign Service Journal, January-February 2020

74 JANUARY-FEBRUARY 2020 | THE FOREIGN SERVICE JOURNAL AFSA NEWS STATE OVERVIEWS ALABAMA Individuals domiciled in Alabama are considered residents and are subject to tax on their entire income, regardless of their physical presence in the state. Alabama’s individual income tax rates range from 2 percent on taxable income over $500 for single taxpayers and $1,000 for married filing jointly, to 5 percent over $3,000 for single taxpayers and $6,000 for married filing jointly. Write: Alabama Department of Revenue, 50 N. Ripley St., Montgomery AL 36104. Phone: (334) 242-1170 Website: https://revenue.alabama.gov Email: Link at bottom of main webpage. ALASKA Alaska does not tax individual income or intangible or per- sonal property. It has no state sales and use, franchise or fiduciary tax. Some municipalities levy sales, property and use taxes, however. Write: Tax Division, Alaska Department of Revenue, P.O. Box 110420, Juneau AK 99811-0420. Phone: (907) 465-2320 Website: www.tax.state.ak.us ARIZONA Individuals domiciled in Arizona are considered residents and are taxed on any income that is included in the Federal Adjusted Gross Income, regardless of their physical presence in the state. Arizona’s tax rate ranges in five brackets from a minimum of 2.59 percent to a maximum of 4.54 percent of taxable income over $331,346 married filing jointly or $165,674 for single filers. Write: Arizona Department of Revenue, Customer Care, P.O. Box 29086, Phoenix AZ 85038-9086. Phone: (602) 255-3381 Website: www.azdor.gov Email: taxpayerassistance@azdor.gov ARKANSAS Individuals domiciled in Arkansas are considered residents and are taxed on their entire income, regardless of their physi- cal presence in the state. The Arkansas tax rate ranges in six brackets from a minimum of 2.4 percent to a maximum of 6.9 percent of net taxable income over $84,601. Write: Department of Finance and Administration, Income Tax Section, P.O. Box 3628, Little Rock AR 72203-3628. Phone: (501) 682-1100 Website: www.arkansas.gov/dfa Email: individual.income@dfa.arkansas.gov CALIFORNIA Foreign Service employees domiciled in California must establish nonresidency to avoid liability for California taxes (see Franchise Tax Board Publication 1031). However, a “safe harbor” provision allows anyone who is domiciled in state but is out of the state on an employment-related contract for at least 546 consecutive days to be considered a nonresident. This applies to most Foreign Service employees and their spouses, but members domiciled in California are advised to study FTB Publication 1031 for exceptions and exemptions. The California tax rate for 2018 (2019 rates not available at press time) ranged in eight brackets from 1 percent of taxable income under $8,544 for singles and $17,088 for joint filers, to a maximum of 12.3 percent on taxable income over $572,980 for singles and $1,145,960 for joint filers. Nonresident domi- ciliaries are advised to file on Form 540NR. Write: Personal Income Taxes, Franchise Tax Board, P.O. Box 942840, Sacramento CA 94240-0040. Phone: (800) 852-5711 (inside the U.S.); (916) 845-6500 (outside the U.S.) Website: www.ftb.ca.gov Email: Link through the website’s Contact Us tab. COLORADO Individuals domiciled in Colorado are considered residents and are subject to tax on their entire income, regardless of their physical presence in the state. Colorado’s tax rate is a flat 4.63 percent of federal taxable income, plus or minus allowable modifications. Write: Department of Revenue, Taxpayer Service Division, P.O. Box 17087, Denver CO 80217-0087. Phone: (303) 238-7378 Website: www.colorado.gov/revenue Email: DOR_TaxpayerService@state.co.us CONNECTICUT Connecticut domiciliaries may qualify for nonresident tax treatment under either of two exceptions as follows: Group A—the domiciliary 1) did not maintain a permanent place of abode inside Connecticut for the entire tax year; and 2) maintains a permanent place of abode outside the state for the entire tax year; and 3) spends not more than 30 days in the aggregate in the state during the tax year. Group B—the domiciliary 1) in any period of 548 consecu- tive days, is present in a foreign country for at least 450 days; and 2) during the 548-day period, is not present in Connecti- cut for more than 90 days; and 3) does not maintain a per-