The Foreign Service Journal, February 2011

A F S A N E W S ers) will be taxed at 8.97 percent. In New York City themaximum rate is 3.648 percent over $90,000 and 3.876 percent over $500,000. Filing is required on Form IT-203 for revenue derived fromNewYork sources. A 2001 opinion from the New York tax authorities stated that Foreign Service em- ployees not domiciled in New York state but assigned to the U.S. UnitedNations office for a normal tour of duty would not be consid- ered to be maintaining a permanent place of abode inNewYork state. Therefore, such in- dividuals are not treated as resident individ- uals and are taxed as non-residents in New York state. Write: New York State Depart- ment of Taxation and Finance, Personal In- come 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 resi- dents and are subject to tax on their entire income regardless of their physical presence in the state. For 2010, the tax rate rises in three steps from 6 percent of taxable income up to $12,750 for single or $21,250 for joint filers, to 7.75 percent of North Carolina tax- able income over $60,000 for single filers and over $100,000 for joint filers. In addition, for 2010, there is a surtax of 2 percent for singles with North Carolina taxable income over $60,000 and 3 percent over $150,000; for joint filers it is 2 percent over $100,000 and 3 percent over $200,000. Residents must also report and pay a“use tax”on purchasesmade 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 in North Dakota and serving outside the state are considered residents and are subject to tax on their entire income. For 2010 the tax rate ranges from1.84 percent on North Dakota taxable income up to $34,000 for singles and $56,850 for joint filers, to a maximum of 4.86 percent on taxable in- come over $373,650 for singles and joint fil- ers. Write: Office of State Tax Commiss- ioner, 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 inOhio are considered residents and their income is sub- ject to tax, using the Federal Adjusted Gross Income figure as a starting base. For 2010 Ohio’s tax rate remains at a minimum of 0.618 percent on taxable income under $5,000, rising in nine steps to a maximum of $9,573.30 plus 6.24 percent on taxable in- come over $200,000. Write: Ohio Depart- ment of Taxation, Taxpayer 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 regard- less of their physical presence in the state. The 2010 tax rate rises in eight stages to a maximum of 5.5 percent on taxable income over $8,700 for single filers and $15,000 for married filing jointly. Write: Oklahoma Tax Commission, Income 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 inOre- gon are considered residents and are subject to tax on their entire income regardless of their physical presence in the state. Under a 1999 law, however,Oregon exempts domicil- iaries who meet the foreign residence re- quirement for the Foreign Earned Income Exclusion, even though they may be federal employees. Oregon’s tax rate is 9 percent on taxable income over $7,600 for single filers and over $15,200 for married filing jointly. For 2010, however, taxable income above $125,000 (single filers) and $250,000 (joint filers), is taxed at a new rate of 10.8 percent. For taxable income above $250,000 (single filers) and $500,000 (joint filers), the new rate is 11 percent. Contact the Oregon Depart- ment of Revenue for up-to-date information. Oregon has no sales tax. Write: Oregon De- partment of Revenue, 955 Center St. NE, SalemOR 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 resi- dents in the U.S. Foreign Service are not on federal active duty for state tax purposes, 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 else- where, and spends no more than 30 days in the state during the tax year. However, Penn- sylvania 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 domicile status. File Form PA-40 for all income de- rived fromPennsylvania sources. Pennsylva- nia’s tax rate is a flat 3.07 percent. Write: Commonwealth of Pennsylvania, Depart- ment of Revenue, Taxpayer Services Depart- ment, 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 res- idents and are subject to tax on their entire income regardless of their physical presence in the commonwealth. Normally, they may claim a credit with certain limitations for in- come taxes paid to the United States on in- come from sources outside Puerto Rico, and for any federal taxes paid. Taxes range from 7 percent of taxable income up to $17,000 to 33 percent of the taxable income over $50,000 for all taxpayers. Write: Departa- mento 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 domiciled in Rhode Island are considered residents and are subject to tax on their entire income re- gardless of their physical presence in the state. The 2010 Rhode Island tax rate ranges from 3.75 percent of taxable income up to $34,000 for single filers and $56,800 for joint filers up to 9.9 percent of taxable income over $373,650 for all filers. A 2010 change treats capital gains as ordinary taxable income. 66 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 1