The Foreign Service Journal, February 2009

F E B R U A R Y 2 0 0 9 / F O R E I G N S E R V I C E J O U R N A L 53 Gross Income figure as a starting base. For 2008, Ohio’s tax rate ranges in nine steps from a minimum of 0.618 percent to a maximum of 6.24 percent on taxable in- come over $200,000. For TaxYear 2009 the maximumwill fall to 5.925 percent. Write: Ohio Department of Taxation, 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 inOklahoma are considered residents and are subject to tax on their entire income re- gardless of their physical presence in the state. The 2008 tax rate rises in eight stages to a maximum of 5.55 percent on taxable income over $8,700 for single filers and $15,000 for married filing jointly. Write: Oklahoma Tax Commission, Taxpayer Services Division, 2501 North Lincoln Blvd., 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 tax on their entire income re- gardless 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. The 2008 tax rate rises to a maximum of 9 percent on taxable income over $7,300 for single filers and over $14,600 for married filing jointly. Oregon has no sales tax. Write: OregonDepartment of Revenue, 955 Cen- ter Street N.E., SalemOR 97301-2555. Phone: (503) 378-4988. E-mail: questions.dor@state.or.us Web site: http://egov.oregon.gov/DOR PENNSYLVANIA: Pennsylvania tax authorities have ruled that Pennsylvania residents in the U.S. Foreign Service are not on federal active duty for state tax pur- poses, and thus their income is taxable compensation. For non-Foreign Service Penn. 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, Pennsylva- nia does not consider government quarters overseas to be a“permanent residence else- where.” Filing a return is not required, but it is recommended to preserve domicile status. File FormPA-40 for all income de- rived fromPennsylvania sources. Pennsyl- vania’s tax rate is a flat 3.07 percent. Write: Commonwealth of Pennsylvania, Depart- ment of Revenue, Taxpayer Services De- partment, Harrisburg PA 17128-1061. Phone: (717) 787-8201. E-mail: Link through the Web site’s “Contact Us” tab. Web site: www.revenue.state.pa.us PUERTO RICO: Individuals who are domiciled in Puerto Rico are considered residents and are subject to tax on their en- tire income regardless of their physical presence in the commonwealth. Normally, they may claim a credit with certain limi- tations for income taxes paid to the United States on income from sources outside Puerto Rico, and for any federal taxes paid. See the forms on theWeb site for 2008 tax rates. Write: Departamento de Hacienda, P.O. Box 9024140, San Juan PR 00902- 4140. Phone: toll-free 1 (800) 981-9236, or (787) 721-2020, ext. 3611. E-mail: infoserv@hacienda.gobierno.pr Web site: www.hacienda.gobierno.pr RHODE ISLAND: Individuals domi- ciled in Rhode Island are considered resi- dents and are subject to tax on their entire income regardless of their physical pres- ence in the state. The Rhode Island tax rate ranges from 3.75 percent of taxable in- come up to $26,575 (married filing sepa- rately) up to 9.9 percent of taxable income over $349,700. Refer to the tax division’s Web site 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. E-mail: txassist@tax.state.ri.us Web site: www.tax.state.ri.us SOUTH CAROLINA: Individuals domiciled in South Carolina are consid- ered residents and are subject to tax on their entire income regardless of their physical presence in the state. South Car- olina imposes a graduated tax rising in six steps from2.5 percent on the first $2,500 to amaximumof 7 percent of taxable income over $100,000. Write: South Carolina Tax Commission, 301 Gervais Street, P.O. Box 125, Columbia SC 29214. Phone: (803) 898-5709. E-mail: iitax@sctax.org Web site: www.sctax.org SOUTH DAKOTA: There is no state income tax and no state inheritance tax. Property and sales taxes vary depending on city and/or county. Sales tax and use tax are generally between 5 and 6 percent. Write: SouthDakotaDept. of Revenue, 445 E. Capitol Ave., Pierre SD 57501-3185. Phone: (605) 773-3311. E-mail: Link through the Web site’s “Contact Us” tab. Web site: www.state.sd.us/drr2/ revenue.html TENNESSEE: Salaries and wages are not subject to state income tax, but Ten- nessee imposes a 6-percent tax on divi- dends and certain types of interest income received by residents. Total sales tax is be- tween 8.5 and 9.75 percent, depending on the jurisdicition. For information write: Tennessee Department of Revenue (Atten- tion: Taxpayer Services), 500 Deaderick Street, Nashville TN 37242. Phone: (615) 253-0600. E-mail: TN.Revenue@state.tn.us Web site: www.state.tn.us/revenue TEXAS: There is no state income tax. Sales tax ranges from 6.5 to 8.25 percent depending on the jurisdiction. Write: Texas Comptroller of PublicAccounts, P.O. Box 13528, Capitol Station, Austin TX 78711-3528. Phone: toll-free 1 (877) 622-8375. E-mail: tax.help@cpa.state.tx.us Web site: www.window.state.tx.us UTAH: Individuals domiciled in Utah are considered residents and are subject to Utah state tax. Utah requires that all Fed- eral Adjusted Gross Income reported on the federal return be reported on the state return regardless of the taxpayer’s physical presence in the state. For 2008, Utah has abolished variable tax rates and has insti- tuted a “single rate tax” of 5 percent on all income. Some taxpayers will be able to claim either a taxpayer tax credit or a re- tirement tax credit, or both (see Web site for explanation). Write: Utah State Tax A F S A N E W S