The Foreign Service Journal, February 2003

FEBRUARY 2003 • AFSA NEWS 9 State Overviews ALABAMA: Individuals domiciled in Alabama are considered residents and are subject to tax on their entire income regard- less of their physical presence in the state. Alabama’s tax rate ranges from 2 to 5 per- cent, dependingon income and filing status. Write: Alabama Department of Revenue, PO Box 327460, Montgomery, AL 36132- 7460. Phone: (334) 242-1170. E-mail: erohelpdesk@revenue.state.al.us. Web site: www.state.al.us ALASKA: Alaska does not tax individual income or intangible or personal property. It has no sales and use, franchise or fiducia- ry tax. Write: State Office Building, 333 Willoughby Ave, 11th Floor, PO Box 110400, Juneau, AK 99811-0400. Phone: (907) 465-2300. Web site: www.state.ak.us/tax ARIZONA: Individuals domiciled in Arizona are considered residents and are taxed on any income that is included in the federal AGI, regardless of their physical pres- ence in the state.Arizona tax rate ranges from 2.87 to 5.04 percent depending on income and filing status.Write: ArizonaDepartment of Revenue, Taxpayer Assistance, PO Box 29069, Phoenix, AZ 85038-9069. Phone: (602) 255-3381. Web site: www.revenue.state.az.us ARKANSAS: Individuals domiciled in Arkansas are considered residents and are taxed on their entire income regardless of theirphysical presence in the state.Arkansas’s tax rate ranges from1 to 7 percent depend- ing on income and filing status. Write: Department of Finance andAdministration, IncomeTaxFormsDivision, P.O. Box3628, Little Rock, AR 72203-3628. Phone: (501) 682-1100 or 1 (800) 882-9275. Web site: www.state.ar.us/dfa/taxes CALIFORNIA: Recent changes in FTB Publication1031mean that ForeignService officers domiciled inCaliforniamust estab- lish non-residency to avoid being liable for California taxes. However, a “safe harbor” provisionwas enacted in1994 that provides that anyonewho is domiciled in-state but is out of the state on an employment-related contract for at least 546 consecutive dayswill be considered a non-resident. This applies to FS employees and their spouses, but California residents are advised to studyFTB Pub 1031 for exceptions and exemptions. Non-residents should use Form 540NR. Write: Franchise Tax Board, Tax Forms Request, P.O. Box307, RanchoCordova,CA 95741-0307. Phone: 1 (800) 852-5711. Web site: www.ftb.ca.gov COLORADO: Individuals domiciled in Colorado are considered residents and are subject to tax on their entire income regard- less of their physical presence in the state. Colorado’s tax rate is a flat 4.63 percent of federal taxable income attributable to Colorado sources. Write: Department of Revenue, Taxpayer Service Division, State Capitol Annex, 1375 Sherman St., Denver, CO 80261-0005. Phone: (303) 238-7378. E-mail: Revenue@spike.dor.state.co.us. Web site: www.taxcolorado.com. CONNECTICUT: No tax liability for out- of-state income if the individual has noper- manent place of abode in Connecticut, has a permanent place of abode elsewhere, and is not present in the statemore than30 days during the tax year. No tax liability for those with permanent place of abode in Connecticut who live in a foreign country 450 days out of 548 days, without spending over 90 days in Connecticut. Details of this rule can be found on the Department of Revenue Services Web site at: www.drs.state.ct.us/formlib/2002/Pubs/IP/IP 02-22.pdf. Write: Department of Revenue Services, 25 Sigourney St., Hartford, CT 06106. Phone: (860) 297-5962. Fax: (860) 297-4929. Web site: www.drs.state.ct.us