Posted on 03/22/2010 7:09:01 AM PDT by reaganaut1
When Josh Beckett pitches for the Red Sox at Yankee Stadium, New York collects income tax on the portion of his salary that he earned in New York State.
But what about a Boston Scientific sales representative who comes to New York to pitch medical products to a new client? New York has decided it wants a slice of that paycheck, too.
Anyone who crosses a state border for work — to make a sales call, say, or meet with a client or do a road show on Wall Street — probably owes income taxes in that state.
If you live in Boston but spend one out of 250 workdays this year in New York, you owe New York income taxes on 1/250th of your salary. And vice versa if you are a New Yorker visiting Boston — or Anywheresville, for that matter — for business.
Such laws have been on the books for decades, and they vary by state. But it is only recently, accountants and tax lawyers say, that many states appear to have picked up enforcement, expanding it beyond the wealthiest celebrities and athletes.
“The states are all hungry for revenue,” said Alan Clavette, an accountant in Newtown, Conn. “We are certainly seeing states like New York and Connecticut looking more and more for executives and everyday taxpayers who may be spending time across the border.”
The states, for their part, say better techniques for tracking tax deadbeats, not pressure to fill their budget holes, have prompted them to become more vigorous at enforcing the provision.
(Excerpt) Read more at nytimes.com ...
In all sorts of ways, as governments try to pay for their out-of-control spending, things are going to get very ugly.
It’s that way already..Live in NY. pay their taxes.
Own some property in Missouri. Lease property to a Company. I have to pay NY taxes on the Income, AND MISSOURI(non resident) TAXES on the Income created in that state.
On tour as a guitar player... 27 states required I pay taxes on $$$ earned in those states.
NOTHING NEW here.
Meanwhile, NYS sits on tax refunds until at least April 1rst...
Rush has talked about this, he doesn’t work in New York anymore.
two words of advice- tele conference
companies need to get A LOT smarter about where and why they send people to meetings
Three guesses why Upstate NY is fixin' to lose a couple of House seats after the next census :(
“I would tax all foreigners living abroad”
Monty Python’s Flying Circus, 1969
The Josh Beckett example they use actually points to what is driving this initiative on the part of New York State -- but due to revenue implications in "reverse." New York State DOES get tax revenue from a portion of opposing players' salaries as this article describes, but they also LOSE about half the revenue from their own players. This is because professional athletes who play for New York teams are smart enough (or wealthy enough to pay smart accountants to tell these things) to minimize their New York State income tax obligations by establishing their official residences in other states.
I believe Derek Jeter, for example, is officially a resident of Florida -- which has no state income tax. This means he pays New York State income taxes on that 50% portion of his salary he "earns in New York" for the team's 81 home games, but doesn't pay NY taxes on the 50% of his income from the 81 road games (I've ignored the implications of inter-league games against the New York Mets for the sake of simplicity).
One other implication of this arrangement is that this allows someone like Derek Jeter to avoid paying New York State income taxes on any income he earns outside of baseball (from endorsement deals, for example).
There are even some ludicrous extensions of this arrangement, too. After reading a few articles about this I figured out that this is likely one reason why a team like the New York Yankees has established a training center in the Tampa area of Florida. Whenever a player is injured it always seems as if there is a quick announcement in the sports section indicating that "So-and-So is on a rehabilitation assignment at the team's training center in Tampa" or something along those lines. This allows a player who is on the disabled list (and therefore is not on the team's active roster) to reduce his New York State tax liability by working out and practicing in Florida.
That will increase the value of services like gotomeeting.com and other remote meeting sites.
Doesn’t matter who they tax, the State will still be broke. A product of decades of liberal rule. It’s odd that so few people can figure out that big-spending big governments don’t work.
I had the same thought.
The idea of collecting taxes for non revenue producing events seems new. If you make a business trip to discuss IT problems, are you liable for state (and possibly city) income taxes? The trip does not produce any specific revenue. Are you liable for attending a conference? I do not believe that states have been collecting taxes on incidental travel. In the case of performance, your income is derived from revenue directly generated by paying customers at the location.
If states asset that state and local income taxes are due for incidental travel, corporations may revise travel plans. They may decide to use web conferencing services to avoid the taxation.
If you live in New York but pay taxes in ten other states for part of your income, you do need to document the total income on your New York State resident income tax form -- but when you figure out how much you actually OWE to New York you include a credit against your New York tax liability for what you've paid to other jurisdictions.
The states have branded everyone as Highwayman
They want their Toll
As the article discussed NY and CONN... you can probably expect taxation for “Regular Income” earned inside the state.
MORONS... less business travel. Which will also affect... Restaurants, Broadway theatres, taxi’s..
What Shortsighted IDIOTS they are.
I didn’t want to Waste the BANDWIDTH going into such PAINFUL DETAIL... there ARE STATES that do just that. If you have to pay taxes to another state...Tough..cough up the taxes for STate #1 first.
Either way, it means more paperwork, more BULL****, and WASTED manhours keeping track of said BS
Let's suppose you are a New York resident and you earned a total of $100,000 in 2009. Let's also suppose that half this income ($50,000) was earned in Missouri.
Let's suppose (again, this is a very simple example) that neither state allows any exemptions or deductions in their income tax system . . . and that New York has a flat income tax rate of 10%, while Missouri has a flat income tax rate of 5%.
1. You file your Missouri return and calculate your Missouri tax liability as $2,500 (5% of $50,000).
2. You then file your New York return and calculate your New York tax liability as $10,000 (10% of $100,000).
3. On your New York return you document the $50,000 you earned in Missouri, and also document the $2,500 you are obligated to pay Missouri.
So you owe New York State the $7,500 difference between the two ($10,000 minus the $2,500 credit).
**OWE to New York you include a credit against your New York tax liability**
I expect NY to do away with that as soon as possible..and bet others do, too !!!!
The apathy in this country has to stop, and hold these idiots in DC to the same standard that they hold us to.
Their ability to foist this crap on us is our own fault for continuing to reelect them.
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