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Author Topic: State Income Taxation  (Read 13708 times)

Adam Selene

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Re:State Income Taxation
« Reply #30 on: July 06, 2003, 10:12:23 pm »

That's how the Tax Foundation presented their data, I just copied it.

New Hamphire collected $71,592,000 dollars in this tax in 2002, so it certainly affects some people.
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Adam Selene

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Re:State Income Taxation
« Reply #31 on: July 06, 2003, 10:58:29 pm »

Montana Department of Revenue

About Individual Income Tax

Montana residents are taxed on all income, regardless of source, except that income which is statutorily exempted from taxation. Part-year residents and nonresidents are taxed on all income derived from or connected to Montana sources. Additionally, part-year residents are taxed on all non-Montana source income generated during or attributable to the period of the tax year in which they resided in Montana.

Montana's individual income tax was enacted in 1933 and continues to this day to be the largest source of state tax revenue. The state's income tax is viewed as a "progressive" tax system because of the distribution of tax burden and because income is taxed according to a graduated rate structure with rates ranging from 2% to 11% of taxable income.

Taxable income is derived from gross income by making certain adjustments and taking a variety of allowable deductions and exclusions. This tax generally applies to the net income of Montana residents and nonresidents.

"Tie to Federal" Alignment

Probably the most significant feature of Montana's income tax is the substantial reliance on the federal tax code. Often described as a "tie to federal" alignment, this reliance allows the state to establish the essential elements of this tax system by direct reference to federal definitions of income and deductions, and federal reporting procedures and protocol.

This reliance is common among the 43 other states imposing individual income taxes. Most importantly, this approach allows both the state and its taxpayers to realize significant operating efficiencies. Without this parallel structure, Montanans would face increased complexity and substantially higher compliance costs.

The income tax statutes do, however, reflect Montana-specific tax policy as determined by previous legislative assemblies. These policy directives are found in the areas of additions and reductions to federal adjusted gross income, unique itemized deductions, and tax credits.

Collection of Individual Income Tax

Income tax revenues are collected primarily through employer withholding, periodic estimated tax payments, and payments made when the return is filed. Income tax revenues are distributed 100% to the general fund.

Electronic filing of the Montana income tax return along with the federal return is available. Telefile (filing by telephone) was implemented beginning in tax year 1996. Direct deposit of refunds is available to all filers.

Source: http://www.state.mt.us/revenue/css/2forindividuals/01taxeslicensesfees/b-incometax/01b-about.asp
« Last Edit: July 06, 2003, 10:59:10 pm by Adam Selene »
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Adam Selene

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Re:State Income Taxation
« Reply #32 on: July 08, 2003, 09:32:16 pm »

Of particular interest is how many members are registered from non-income-tax states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming); and hence may find a state income tax particularly distasteful.

I just ran the numbers myself based on the "Last updated May 9th" statistics posted here: http://www.freestateproject.org/member_maps/MembersByState_numbers.htm

Members from states without a personal income tax represent 827 out of 3300, or 25.06% of the membership.

If an income-tax state is chosen, 1/4 of the membership (assuming this distribution holds up) will be asked to move to a state where they must file and pay additional taxes (up to 11% of their global income), where they previously had no such liability.

This tax burden will be especially difficult for part-time residents who maintain jobs and/or residences in other States. Unless they are *very* part-time resident (which may disqualify voting) they will be taxed as a full-time resident even on income earned in other States.

Personally, I feel that all but Alaska, New Hampshire, South Dakota and Wyoming are disqualified based on this measure.
« Last Edit: July 08, 2003, 09:36:50 pm by Adam Selene »
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Adam Selene

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Re:State Income Taxation
« Reply #33 on: July 08, 2003, 09:35:20 pm »

For FAQs and forms on personal and business income taxes, you can visit each of the following websites:

Delaware Division of Revenue
http://www.state.de.us/revenue/

Idaho State Tax Commission
http://www2.state.id.us/tax/

Maine Revenue Services
http://www.state.me.us/revenue/

Montana Department of Revenue
http://www.state.mt.us/revenue/

North Dakota State Tax Commissioner
http://www.state.nd.us/taxdpt/

Vermont Deparment of Taxes
http://www.state.vt.us/tax/


For information on business income taxes, you can visit each of the following websites:

Alaksa Department of Revenue - Tax Division
http://www.tax.state.ak.us

New Hampshire Department of Revenue Administration
http://www.state.nh.us/revenue/


The following States have neither personal nor business income tax, but I've included their links anyway:

South Dakota Department of Revenue
http://www.state.sd.us/drr/revenue.html

Wyoming Department of Revenue
http://revenue.state.wy.us/
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