The Foreign Service Journal, February 2008

50 F OR E I GN S E R V I C E J OU R N A L / F E B R U A R Y 2 0 0 8 State Overviews ALABAMA: Individuals domiciled in Alabama are considered residents and are subject to taxon their entire income regard- less of their physical presence in the state. Alabama’s tax ranges from 2 percent to a maximumof 5 percent on taxable income over $6,000 formarried filing jointly. Write: Alabama Department of Revenue, 50 N. Ripley, Montgomery AL 36132. Phone: (334) 242-1170. E-mail: Link through the Web site, “About Us” then “Contacts.” Web site: www.ador.state.al.us ALASKA: Alaska does not tax individ- ual income or intangible or personal pro- perty. It has no sales and use, franchise or fiduciary tax. Some, but not all, munici- palities levy sales and property taxes. Write: StateOfficeBuilding, 333Willough- by Ave, 11th Floor, P.O. Box 110420, Juneau AK 99811-0420. Phone: (907) 465-2320. Web site: www.tax.state.ak.us ARIZONA: Individuals domiciled in Arizona are considered residents and are taxedonany income that is included in the Federal AdjustedGross Income, regardless of their physical presence in the state. Arizona’s tax rate ranges in five brackets from 2.73 percent to 4.79 percent on tax- able income over $300,000 formarried fil- ing jointly. Write: ArizonaDepartment of Revenue, Taxpayer Information&Assist- ance, 1600 W. Monroe, Phoenix AZ 85007-2650. Phone: (602) 255-3381. E-mail: taxpayerassistance@azdor.gov Web site: www.azdor.gov ARKANSAS: Individuals domiciled in Arkansas are considered residents and are taxed on their entire income regardless of their physical presence in the state. The Arkansas tax rate ranges insixbrackets from a minimum of 1 percent on net taxable income toamaximumof $1,302plus 7per- cent on net taxable income over $30,100 for married filing jointly. Write: Depart- ment of Finance and Administration, Individual IncomeTax, 1816West Seventh Street, Room 2300, Ledbetter Building, Little Rock AR 72201. Phone: (501) 682-1100. E-mail: Individual.Income@ rev.state.ar.us Web site: www.state.ar.us/dfa/ CALIFORNIA: ForeignService employ- ees domiciled in Californiamust establish non-residency to avoid being liable for California taxes (see FTB Publication 1031). However, a “safe harbor”provision was introduced in1994,whichprovides that anyonewho is domiciled in state but is out of the stateonanemployment-relatedcon- tract for at least 546 consecutive days will be considered anon-resident. This applies to most FS employees and their spouses, but members domiciled in California are advised to study FTBPublication1031 for exceptions andexemptions. TheCalifornia tax rate ranges in six brackets from 1 per- cent to amaximumof $3,946plus 9.3per- cent on the excess over $89,628 for mar- ried filing jointly. Non-residents use Form 540NR. Address: Franchise Tax Board, P.O. Box 942840, Sacramento CA 94240-0040. Phone: toll-free 1 (800) 852-5711. E-mail: Link through the Web site’s “Contact Us” tab. Web site: www.ftb.ca.gov COLORADO: Individuals domiciled in Colorado are considered residents and are subject to taxon their entire income regard- less of their physical presence in the state. Colorado’s tax rate is a flat 4.63 percent on federal taxable income attributable to Colorado sources, plus orminus allowable modifications. Write: Department of Revenue, Taxpayer ServiceDivision, State Capitol Annex, 1375 Sherman St., Denver CO 80261-0005. Phone: (303) 238-7378. E-mail: Link through “Contact Us” tab on “Taxation” page, then click on any of the categories in “Online Answers and Customer Support” for e-mail option. Web site: www.revenue.state.co.us CONNECTICUT: Connecticut domi- ciliaries may qualify for non-resident tax treatment under either of two exceptions as follows:GroupA: Thedomiciliary1) 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 notmore than30 days in the aggregate in the state during the tax year. Group B: The domiciliary 1) in any period of 548 consecutive days, is present in a foreign country for at least 450 days; and 2) during the 548-day period, is not present in Connecticut for more than 90 days; and 3) does not maintain a perma- nent place of abode in the state in which the domiciliary’s spouse orminor children are present for more than 90 days. For 2007, Connecticut’s tax rate ranges from3 percent on income less than$20,000 to$600 plus 5 percent on income over $20,000 for married filing jointly. Write: Department of Revenue Services, Taxpayer Services Division, 25 Sigourney St., Hartford CT 06106-5032. Phone: (860) 297-5962. E-mail: drs@po.state.ct.us Web site: www.ct.gov/drs DELAWARE: Individuals domiciled in Delaware are considered residents and are subject to taxon their entire income regard- less of their physical presence in the state. Delaware’s tax rate rises on a sliding scale from 2.2 percent to a maximum of $2,943.50 plus 5.95 percent on any taxable income over $60,000. Write: Division of Revenue, Taxpayers Assistance Section, State Office Building, 820 N. French St., Wilmington DE 19801. Phone (302) 577-8200. E-mail: personaltax@state.de.us Web site: www.state.de.us/revenue/ DISTRICT OF COLUMBIA: Individ- uals domiciled in theDistrict of Columbia are considered residents and are subject to taxon their entire income regardless of their physical presence there. Individuals domi- ciledelsewhere are alsoconsideredresidents for tax purposes for the portionof any cal- endar year inwhich they arephysicallypre- sent in the District for 183 days or more. TheDistrict’s tax rate is 4percent if income is less than$10,000; $400plus 6percent on excess over $10,000 if between$10,000 and $40,000; and $2,200 plus 8.5 percent on excess over $40,000. Write: Office of Tax and Revenue, 941 N. Capitol St., NE, Washington DC 20002. Phone (202) 727-4TAX (4829). E-mail: ocfo@dc.gov Web site: www.cfo.dc.gov/cfo FLORIDA: Florida does not impose personal income, inheritance or gift taxes. Beginning in Tax Year 2007, individuals, married couples, personal representatives of estates, and businesses are no longer required to file an annual intangible per- sonal property tax return reporting their stocks, bonds,mutual funds,moneymar- ket funds, sharesof business trusts andunse- A F S A N E W S