The Foreign Service Journal, February 2010

to a maximum of 6.85 percent of taxable income over $20,000 for single filers and $40,000 for married filing jointly. How- ever, for the 2009 tax year, taxable income over $200,000 (singles) or $300,000 (joint filers) will be taxed at 7.85 percent; over $500,000 (single and joint filers) will be taxed at 8.97 percent. In New York City, the maximum rate is 3.648 percent. Fil- ing is required on Form IT-203 for rev- enue derived fromNewYork sources. A 2001 opinion from the NewYork tax authorities stated that FS employees not domiciled in NewYork State but assigned to the U.S.UnitedNations office for a nor- mal tour of duty would not be considered to be maintaining a permanent place of abode in NewYork State. Therefore, such individuals are not treated as resident in- dividuals and are taxed as non-residents in NewYork State. Write: NewYork State Department of Taxation and Finance, Personal Income Tax Information, W.A. Harriman Campus, Albany NY 12227. Phone: (518) 457-5181. E-Mail: Link throughWeb site’s “Answer Center” tab. Web site: www.nystax.gov NORTH CAROLINA: Individuals domi- ciled in North Carolina are considered residents and are subject to tax on their entire income regardless of their physical presence in the state. The tax rate rises in three steps from 6 percent of taxable in- come up to $12,750 for single or $21,250 for joint filers, to 7.75 percent (for 2008 and subsequent years) of taxable income over $60,000 for single filers and over $100,000 for joint filers. Residents must also report and pay a “use tax” on pur- chases made outside the state for use in North Carolina. Write: Department of Revenue, P.O. Box 27431, Raleigh NC 27611. Phone: toll-free 1 (877) 252-3052. From overseas, call 1 (252) 467-9000. 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 2009 the tax rate ranges from 2.1 percent on North Dakota taxable income up to $32,950 for singles and $56,750 for joint filers, to a maximum of 5.54 percent on taxable income over $372,950 for singles and joint filers. Write: Office of State Tax Commissioner, State Capitol, 600 E. Boulevard Ave., Dept 127, Bismarck ND 58505-0599. Phone: (701) 328-1247. E-mail: individualtax@nd.gov Web site: www.nd.gov/tax OHIO: Individuals domiciled in Ohio are considered residents and their income is subject to tax, using the Federal Ad- justed Gross Income figure as a starting base. For 2009, the governor has canceled the proposed rate reduction to avoid cuts in services, so Ohio’s tax rate remains at a minimumof 0.618 percent on taxable in- come under $5,000, rising in nine steps to a maximum of $9,573.30 plus 6.24 per- cent on taxable income over $200,000. Write: OhioDepartment of Taxation, Tax- payer Services Center, P.O. Box 530, Columbus OH 43216-0530. 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 and are subject to tax on their entire income regardless of their physical presence in the state. The 2009 tax rate rises in eight stages to a maximum of 5.5 percent on taxable income over $8,700 for single fil- ers and $15,000 for married filing jointly. Write: Oklahoma Tax Commission, In- come Tax, P.O. Box 26800,Oklahoma City OK 73126-0800 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 For- eign Earned Income Exclusion, even though they may be federal employees. The 2009 maximum tax rate is 9 percent on taxable income over $7,600 for single filers and over $15,200 for married filing jointly. The 2009 legislature proposed newmarginal tax rates for TaxYears 2009, 2010 and 2011. These are: Taxable income above $125,000 ($250,000 joint) but not more than $250,000 ($500,000 joint) would be taxed at 10.8 percent; taxable in- come above $250,000 ($500,000 joint) would be taxed at 11 percent. The decision on whether to adopt these changes or not was to be finalized by a “vote of the peo- ple” on Jan. 26, after the Foreign Service Journal went to press. Contact the Ore- gon Department of Rev enue for up-to- date information. Write: Oregon Department of Revenue, 955 Center Street NE, Salem OR 97301- 2555. Phone: (503) 378-4988. E-mail: questions.dor@state.or.us Web site: www.oregon.gov/DOR PENNSYLVANIA: Pennsylvania tax au- thorities have ruled that Pennsylvania res- idents 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 state 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 quar- ters overseas to be a“permanent residence elsewhere.” Filing a return is not required, but it is recommended to preserve domi- cile status. File FormPA-40 for all income derived fromPennsylvania sources. Penn- sylvania’s tax rate is a flat 3.07 percent. Write: Commonwealth of Pennsylvania, Department of Revenue, Taxpayer Serv- ices Department, 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 entire income regardless of their physical presence in the commonwealth. Nor- mally, theymay claima credit with certain limitations for income taxes paid to the United States on income from sources outside Puerto Rico, and for any federal taxes paid. Taxes range from 7 percent of 68 F O R E I G N S E R V I C E J O U R N A L / F E B R U A R Y 2 0 1 0