The Foreign Service Journal, February 2008

54 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 levies, among other taxes, a 5-percent tax on interest and dividend income of more than$4,800 annually for joint filers and an 8.5 percent tax on business profits includ- ing sale of rental property. The inheritance taxwas repealed in 2003. Applicable taxes apply to part-year residents. Write: Taxpayer Assistance Office, 45 Chenell Drive, P.O. Box 2072, Concord NH 03302-2072. Phone: (603) 271-2191. Web site: www.nh.gov/revenue NEW JERSEY: ANew Jersey domicil- iary is considered a non-resident for New Jersey tax purposes if the individual has no permanent residence in New Jersey, has a permanent residence elsewhere and is not physically in the state formore than30days during the tax year. Filing a return is not required (unless the non-resident has New Jersey source income) but is recom- mended inorder topreserve domicile sta- tus. Filing is required on Form 1040-NR for revenue derived from in-state sources. Tax liability is calculated as a variable lump sumplus apercentage froma lowof 1.4per- cent of taxable gross incomeup to$20,000, to a high of 8.97 percent on taxable gross incomeover $500,000. Write: StateofNew Jersey, New Jersey Division of Taxation, Office of Information and Publications, P.O. Box 281, Trenton NJ 08695-0281. Phone: (609) 292-6400. E-mail: Link through the Web site’s “Contact Us” page. Web site: www.state.nj.us/treasury/ taxation. NEW MEXICO: Individuals domiciled inNewMexicoareconsideredresidents and are subject to tax on their entire income regardless of their physical presence in the state. The basis for New Mexico’s calcu- lations is the Federal Adjusted Gross In- come figure. For Tax Year 2007, the state has a graduated rate tablewith four brack- ets, ranging from1.7percent toamaximum of 5.3 percent on New Mexico taxable income over $96,000. Write: NewMexico Taxation and Revenue Department, Tax Information and Policy Office, 1100 St. FrancisDrive, P.O. Box 630, Santa FeNM 87504-0630. Phone: (505) 827-0700. E-mail: Link through “E-mail Us” tab at bottom of home page. Web site: www.state.nm.us/tax NEW YORK: There is no tax liability for out-of-state income if the individual has nopermanent residence inNewYork, has apermanent residence elsewhere and is not present in the statemore than30days dur- ing the tax year. Filing a return is not required, but it is recommended topreserve domicile status. The tax rate ranges in four brackets fromaminimumof 4 percent to a maximum of 6.85 percent on taxable income over $40,000 for married filing jointly. In New York City the maximum rate is 3.648 percent. Filing is required on FormIT-203 for revenuederived fromNew York sources. A 2001 opinion from the New York tax authorities stated that Foreign Service employees not domiciled inNewYork state but assigned to theU.S. United Nations Office for a normal tour of duty would not be considered to be maintaining a permanent place of abode inNewYork state. For tax purposes, such individuals are considered non-residents. Write: New York State Department of Taxation and Finance, Personal Income Tax Information,W.A.HarrimanCampus, Albany NY 12227. Phone: toll-free 1 (800) 225-5829. E-Mail: Link throughWeb site’s “Answer Center” tab. Web site: www.nystax.gov NORTH CAROLINA: Individuals domiciled inNorthCarolinaare considered residents and are subject to tax on their entire income regardless of their physical presence in the state. The tax rate starts at 6percent on taxable income up to$12,750 for single or $21,250 for joint filers, rising in three steps to 8.25 percent on taxable income over $120,000 for single filers and over $200,000 for joint filers. Residents must alsoreport andpaya“use tax”ontheir state income tax returns, on purchases made outside the state for use in North Carolina. Write: Department of Revenue, P.O. Box 25000, Raleigh NC 27640-0640. Phone: toll-free 1 (877) 252-3052. Web site: www.dor.state.nc.us NORTH DAKOTA: Individuals domi- ciled inNorthDakota and serving outside the state are considered residents and are subject to tax on their entire income. For TaxYear 2007, the tax rate ranges from2.1 percent on taxable income up to $31,850 to a maximumof 5.54 percent on taxable income over $349,700. Write: Office of StateTaxCommissioner, StateCapitol, 600 E. BoulevardAvenue, Dept 127, Bismarck ND 58505-0599. Phone: (701) 328-2770. E-mail: taxinfo@nd.gov Web site: www.nd.gov/tax OHIO: Individuals domiciled inOhio are considered residents and their income is subject to taxusing the Federal Adjusted Gross Income figure as a starting base. For 2007, Ohio’s tax rate ranges innine brack- ets from 0.649 percent to a maximum of 6.555 percent on taxable income over $200,000. For Tax Year 2008, this maxi- mumwill be reduced to 6.24 percent and in 2009 to 5.925 percent. Write: Ohio Department ofTaxation, Taxpayer Services Center, 4485 Northland Ridge Blvd., Columbus OH 43229. Phone: toll-free 1 (800) 282-1780 or (614) 387-0224. E-mail: Link throughWeb site’s “Contact Us” tab. Web site: www.tax.ohio.gov OKLAHOMA: Individuals domiciled in Oklahoma are considered residents andare subject to taxon their entire income regard- less of their physical presence in the state. The 2007 tax rate rises in eight brackets to a maximum of 5.65 percent on taxable income over $8,700 for single filers and $15,000 for married filing jointly. Write: Oklahoma Tax Commission, Taxpayer ServicesDivision, 2501NorthLincolnBlvd., Oklahoma City OK 73194-0009. Phone: (405) 521-3160. E-mail: otcmaster@tax.ok.gov Web site: www.oktax.state.ok.us OREGON: Individuals domiciled in Oregon are considered residents and are subject to taxon their entire income regard- less of their physical presence in the state. However, under a 1999 law, Oregon exempts domiciliaries who meet the for- eign residence requirement for the Foreign Earned Income Exclusion, even though they may be federal employees. Tax Year 2007 rates rise from 5 percent to a maxi- mumof 9 percent on taxable income over $7,150 for single filers andover $14,300 for married filing jointly. Oregonhas no sales tax. Write:OregonDepartment of Reven- ue, 955 Center Street N.E., Salem OR 97301-2555. Phone: (503) 378-4988. E-mail: questions.dor@state.or.us Web site: www.oregon.gov/dor and http://egov.oregon.gov/dor A F S A N E W S