U.S. State Non-resident Withholding Tax

Taxation in the United States of America
This article is part of a series on

Federal taxation Alternative minimum tax Capital gains tax Corporate tax Estate tax Excise tax Gift tax Income tax Payroll tax Internal Revenue Service (IRS) Internal Revenue Code (IRC) IRS tax forms Revenue by state History Constitutional authority Taxpayer standing Court Protest Evasion
State and local taxation State income tax Property tax Sales tax Use tax Land value tax State tax levels
Federal tax reform Automated payment transaction tax 9–9–9 Competitive Tax Plan Efficient Taxation of Income FairTax Flat tax Hall–Rabushka flat tax Kemp Commission Taxpayer Choice Act USA Tax Value added tax
United States portal

U.S. State Nonresident Withholding Tax is a mandatory prepayment of tax of individuals or entities that are not resident in the state. A common example of this is the taxation of oil and natural gas royalty interest revenue. In order to ensure that the state receives a portion of the revenue from oil and gas leases within the state, any payments made to an address outside of the state require that a tax be withheld and paid directly to the state.

States that have enacted such laws include, but are not limited to:

Oklahoma
New Mexico
Utah
California
Oregon
Montana
North Carolina
Wisconsin

A majority of states with income taxes impose similar requirements on partnerships (including LLCs) and S corporations with nonresident partners or shareholders. All states with income taxes impose a similar withholding obligation on wages paid to nonresidents by businesses operating within the state.^[1]

The taxes withheld must be treated as prepaid taxes, with final taxes imposed at the same rate and under the same computations for residents and nonresidents.

Sample of external links

References

↑ CCH State Tax Handbook 2009, pages 513-528.

This article is issued from Wikipedia - version of the Thursday, March 10, 2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.