If Someone lives in Washington, Works in Ore-groan, is said someone still legally liable for Ore State Tax???
It depends....
According to the Oregon Dept of Revenue:
- Oregon taxes nonresidents on Oregon-source income (wages, monies earned in Oregon, income from the sale of Oregon property, etc.).
- If you live outside Oregon (such as in, say, Washington), work for an Oregon employer, and perform work for that employer in Oregon, you are liable for Oregon personal income tax.
- If you live outside Oregon, work for an Oregon employer, and perform some of your work inside Oregon and some of it outside Oregon, you are liable for Oregon PIT only on wages earned for work performed within Oregon.
- An Oregon employer is any person or organization for whom a worker performs a service as an employee within Oregon.
- Oregon employers, whether domiciled within Oregon or not, must withhold tax from all wages earned by nonresident employees for services performed in Oregon [unless the earnings for the year 2004 will be $1,670 or less].
- Nonresident employees earning more than $1,670 in Oregon income [in 2004] are required to file an Oregon nonresident tax return.
- Self-employed individuals (including independent contractors) who live outside Oregon but perform work in Oregon for which they receive payment are liable for applicable Oregon income and/or business taxes.
- You may be able to claim a credit for income tax paid to another state on income also taxed by Oregon.
I believe that in Oregon local governments may also levy income and business taxes.
As is the case with all tax laws, there are copious exceptions to the rules on liability and withholding (e.g., interstate transportation wages, seasonal farm wages, etc.).
By the way, if anyone is reading this who is a WA resident and pays OR income tax, Sen. Maria Cantwell (D-WA) and Rep. Brian Baird (D-WA) feel your pain:
http://seattletimes.nwsource.com/html/politics/2002186444_oregontax22m.htmlNB: The above is to the best of my knowledge and casual research, but I am not an accountant, lawyer, or financial planner, or even that great a proof-reader of my own typing.