The Foreign Service Journal, February 2012

A F S A N E W S Ohio are considered residents and their income is subject to tax, using the Fed- eral Adjusted Gross Income figure as a starting base. Ohio’s 2011 tax rate starts at a minimum of 0.587 percent on tax- able income under $5,100, rising in eight steps to amaximumof $9,281 plus 5.925 percent on taxable income over $204,200. Write: Ohio Department 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 through Web 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 in- come regardless of their physical pres- ence in the state. The 2011 tax rate rises in eight stages to amaximumof 5.5 per- cent on taxable income over $8,700 for single filers and $15,000 for married fil- ing jointly. Write: Oklahoma Tax Com- mission, 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 in Oregon are considered residents and are subject to tax on their entire income re- gardless of their physical presence in the state. Under a 1999 law, however, Ore- gon exempts domiciliaries whomeet the foreign residence requirement for the Foreign Earned Income Exclusion, even though they may be federal employees. For 2011, Oregon’s tax rate is 9 percent on taxable income over $7,600 for single filers and over $15,200 for married filing jointly, 10.8 percent on taxable income over $125,000 (single filers) and $250,000 (joint filers), and 11 percent for taxable income over $250,000 (single fil- ers) and $500,000 (joint filers). Contact the Oregon Department of Revenue for up-to-date information. Oregon has no sales tax. Write: Oregon Department of Revenue, 955 Center St. 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 authorities have ruled that Pennsylvania residents in the U.S. Foreign Service are not on federal active duty for state tax purposes, and thus their income is tax- able compensation. For non-Foreign Service state residents, there is no tax li- ability for out-of-state income if the in- dividual has no permanent residence in the state, has a permanent residence else- where, and spends nomore than 30 days in the state during the tax year. However, Pennsylvania does not consider govern- ment quarters overseas to be a “perma- nent residence elsewhere.” Filing a return is not required, but it is recom- mended to preserve domicile status. File FormPA-40 for all income derived from Pennsylvania sources. Pennsylvania’s tax rate is a flat 3.07 percent. Write: Com- monwealth 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 entire income regardless of their physical presence in the commonwealth. Nor- mally, they may claim a credit with cer- tain 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 taxable income up to $17,000 to 33 percent of the taxable income over $50,000 for all taxpayers. Write: Depar- tamento 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 res- idents and are subject to tax on their entire income regardless of their physical presence in the state. The new 2011 Rhode Island tax rate ranges from 3.75 percent of taxable income up to $55,000 for all filers, and 5.99 percent of taxable income over $125,000 for all filers. Also, a 2010 change treats capital gains as or- dinary taxable income. Refer to the tax division’s Web site for current informa- tion and handy filing hints, as well as for forms and regulations. Write: Rhode Is- land Division of Taxation, Taxpayer As- sistance 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 Carolina imposes a graduated tax rising in six steps from 3 percent on the first $5,480 of SouthCarolina taxable income to a maximum of 7 percent of taxable income over $13,700. Write: South Car- olina Tax Commission, 301 Gervais St., P.O. Box 125, Columbia SC 29214. Phone: (803) 898-5709. E-mail: iitax@sctax.org or through the Contact Us tab. Web site: www.sctax.org SOUTH DAKOTA: There is no state income tax and no state inheritance tax. State sales and use tax is 4 percent; mu- nicipalities may add up to an additional 2 percent. Write: South Dakota Depart- ment of Revenue, 445 E. Capitol Ave., Pierre SD 57501-3185. 44 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 2