The Foreign Service Journal, February 2013

54 FEBRUARY 2013 | THE FOREIGN SERVICE JOURNAL AFSA NEWS on taxable income over $3,150 for single filers and over $6,300 for married filing jointly, in three steps to 9.9 percent on taxable income over $125,000 (single filers) and $250,000 (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 Pennsyl- vania residents in the U.S. Foreign Service are not on federal active duty for state tax purposes, and thus their income is taxable compensa- tion. 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, Penn- sylvania does not consider government quarters 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 derived from Pennsylvania sources. Pennsylvania’s tax rate is a flat 3.07 percent. Write: Commonwealth of Pennsylvania, Department of Revenue, Taxpayer Services 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 common- wealth. Normally, they may claim a 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 tax- able income up to $22,000 to 33 percent of the taxable income over $60,000 for all taxpayers. Write: Departamento de Hacienda, P.O. Box 9024140, San Juan, PR 00902-4140. Phone: (787) 727-0216. 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 regardless of their physical presence in the state. The Rhode Island tax rate is 3.75 percent of taxable income up to $57,150 for all filers, 4.75 percent for income over $57,150, and 5.99 percent of taxable income over $129,900 for all filers. Also, a 2010 change treats capital gains as ordinary taxable income. Refer to the tax divi- sion’s Web site for current information and handy filing hints, as well as for forms and regulations. Write: Rhode Island Division of Taxation, Taxpayer Assis- tance 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 con- sidered 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 $5,600 of South Carolina taxable income to a maximum of 7 percent of taxable income over $14,000. Write: South Carolina 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; municipalities may add up to an additional 2.75 percent. Write: South Dakota Depart- ment 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 Tennessee imposes a 6-percent tax on most divi- dends and interest income of more than $1,250 (single filers) or $2,500 (joint filers) in the tax year. Write: Tennessee Depart- ment of Revenue (Attention: Taxpayer Services), 500 Deaderick St., Nashville, TN 37242. Phone: (615) 532-6439. E-mail: TN.Revenue@tn.gov Web site: www.state.tn.us/ revenue 2012 TAX GUIDE