The Foreign Service Journal, February 2012

A F S A N E W S poses no personal income tax on earned income and no general sales tax. The state does levy, among other taxes, a 5- percent tax on interest and dividend in- come of more than $2,400 annually for single filers ($4,800 annually for joint fil- ers) and an 8.5-percent tax on business profits, including sale of rental property. The inheritance tax was repealed in 2003. Applicable taxes apply to part-year residents. Write: Central Taxpayer Serv- ices, 109 Pleasant St., Concord NH 03301. Phone: (603) 230-5920. Web site: www.nh.gov/revenue NEW JERSEY: A New Jersey domi- ciliary is considered a non-resident for New Jersey tax purposes if the individ- ual has no permanent residence in New Jersey, has a permanent residence else- where and is not physically in the state for more than 30 days during the tax year. Filing a return is not required (un- less the non-resident has New Jersey- source income), but it is recommended in order to preserve domicile status. Fil- ing is required on Form1040-NR for revenue derived from in-state sources. Tax liability is calculated as a variable lump sumplus a percentage fromamin- imum of 1.4 percent of taxable gross in- come up to $20,000, 6.37 percent between $75,000 and $500,000, and a maximum of 8.97 percent on taxable gross income over $500,000. Write: State of New Jersey, New Jersey Division of Taxation, Technical Information Branch, 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 domi- ciled in NewMexico are considered res- idents and are subject to tax on their entire income regardless of their physical presence in the state. The basis for New Mexico’s calculation is the Federal Ad- justed Gross Income figure. Rates rise from a minimum of 1.7 percent to a maximum of 4.9 percent on New Mex- ico taxable income over $16,000 for sin- gle filers and $24,000 for married filing jointly. Write: NewMexico Taxation and Revenue Department, Tax Information and Policy Office, P.O. Box 25122, Santa Fe NM 87504-5122 Phone: (505) 827-0700. E-mail: Link through “E-mail Us” tab at bottom of home page. Web site: www.tax.state.nm.us NEW YORK: There is no tax liability for out-of-state income if the individual has no permanent residence in New York, has a permanent residence else- where and is not present in the state more than 30 days during the tax year. Filing a return is not required, but it is recommended to preserve domicile sta- tus. The tax rate rises in four steps from a minimum of 4 percent to a maximum of 6.85 percent of taxable income over $20,000 for single filers and $40,000 for married filing jointly. For the 2011 tax year, however, taxable income over $200,000 (singles) or $300,000 (joint fil- ers) 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 over $90,000 and 3.876 percent over $500,000. Filing is required on Form IT- 203 for revenue derived from New York sources. A 2001 opinion from the New York tax authorities stated that Foreign Serv- ice employees not domiciled in New York state but assigned to the U.S.United Nations office for a normal tour of duty would not be considered to be main- taining a permanent place of abode in New York state. Therefore, such indi- viduals are not treated as resident indi- viduals and are taxed as non-residents in New York state. Write: New York State Department of Taxation and Finance, Personal Income Tax Information,W.A. Harriman Campus, Albany NY 12227. Phone: (518) 457-5181. E-Mail: Link through Web site’s “Answer Center” tab. Web site: www.tax.ny.gov NORTH CAROLINA: Individuals domiciled inNorth Carolina are consid- ered residents 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 taxable income over $60,000 for single filers and over $100,000 for joint filers. The surtax in 2009 and 2010 is no longer applicable in 2011. Residents must also report and pay a “use tax” on purchases made out- side the state for use in North Carolina. Write: North Carolina Department of Revenue, P.O. Box 25000, Raleigh NC 27640-0640. 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 out- side the state are considered residents and are subject to tax on their entire in- come. For 2011 and later tax years, the tax rate ranges in five steps from 1.51 percent on North Dakota taxable in- come up to $34,500 for singles and $57,700 for joint filers, 3.13 percent over $83,600 for singles and over $139, 350 for joint filers, to a maximum of 3.99 percent on taxable income over $379,150 for singles and joint filers. Write: Office of State Tax Commissioner, State Capi- tol, 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 F E B R U A R Y 2 0 1 2 / F O R E I G N S E R V I C E J O U R N A L 43