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I have lived in the same city for over 20 years and have paid property taxes that help support the community college district. As have many family members (who never used the CC). Now, I've attended the community college in the past, but my oldest son has just started and we are moving to another city in another county an hour away.
Once we make that move, he can still attend classes at a "satellite" campus not too far away, or take them online, but at a much higher out of district rate. Not as bad as out of state rates but significantly higher still. The other city we are moving to (small town actually) doesn't have its own community college at all, just a large 4 year university at 4x the tution rate of a CC. My son wants to save money by going the CC route then transferring.
There's another large city nearby in the other direction, with their own satellite campus too, and again, since we don't live there, he can't get a lower rate there either, but I understand that, because we've never lived THERE... but the city we are moving from after over 20 years of paying property taxes? I don't know, I wish he could get the better tuition rate with some sort of proof of how long we've lived here. If that makes sense.
I know it won't happen though but it annoys me nonetheless.
Your Ky taxes pay for a lot of things that you don't think about. How would you like it if KY didn't have a garbage pick up system, or police, or firemen? Taxes repair those streets you drive on, keep those traffic lights working. I am sure that KY has pot holes in the streets, but sooner or later, they will be repaired. Your taxes help.
It's not just about you. It's about anyone that lives out of state.
I'll bet if TN did have a state income tax on wages his state income taxes would not be going to KY.
TN compensates not having a state income tax on wages by having steep state taxes on other things that also affect the OP.
It may be legal, but how in the world can posters say it is fair when the OP is being taxed twice---------once in KY and once in TN ( by paying steep other TN taxes that compensate for a lack of state income tax in TN ) ?
Your Ky taxes pay for a lot of things that you don't think about. How would you like it if KY didn't have a garbage pick up system, or police, or firemen? Taxes repair those streets you drive on, keep those traffic lights working. I am sure that KY has pot holes in the streets, but sooner or later, they will be repaired. Your taxes help.
It's not just about you. It's about anyone that lives out of state.
does KY still get income taxes from neighboring residents from states who do have a state income tax ?
EXAMPLE--------do Illinois residents who work in KY pay both Illinois and KY state income taxes?
Bascially your not a resident of KY. Licease are based on residency ;not that you work their and pay taxes on earning made in KY. In most state there is aso t more to taxes than just state income tax for residents.
I live in TN. I've lived here all my life and never paid state income tax until 2010 when I got a job in KY. I've paid KY state income tax since that time. I've looked into getting hunting and fishing license in KY as well as tuition at KY colleges since I'm thinking about going back to school.
In every case I've found it doesn't matter that I pay taxes and contribute - I have to pay more because I live out of state. Of course I could just lie about my residency but I'm not that kind of guy. No good deed goes unpunished I guess.
This makes no sense to me. I could have moved to KY and not worked, not contributed anything and gotten the in state rate for tuition and fishing license. I pay all the taxes a KY resident pays - why shouldn't I get all the same benefits?
The thing is, I don't mind paying taxes for stuff I use. I just don't like paying taxes and getting nothing in return.
Anyone else in a similar situation?
State income tax laws are differant than state residency requirements. These are not apples and apples. They are 2 differant things. Rules and regs are differant for both. Paying state income tax is not a requirement to going to school or buying a hunting and or fishing lecense. Residency is a requirement.
One has no bearing on the other.
Also what is keeping you from moving to Kentucky? Why not just move there and get the benefits that you desire.
The law for hunting licenses is based on where you live--just like the rates for automobilie insurance is based on where you live, not where you work---and there are differences in the state laws concerning insurance coverage which might affect how much you pay even if you only lived 100 yards across the state line.
If you live in TN and work in KY, you still drive on KY roads, might have need of KY emergency vehicle assistance in the event of an accident, still benefit from road maintenance, etc. Your other choice is to petition KY state legislators to change the law to benefit your particular circumstance. That's not likely to occur. So move to KY and see about getting an out of state hunting license in TN. I'm thinking the reciprocal is in effect, and that TN has a higher charge or limited time frame for out of staters.
In most cases, hunting and fishing licenses are validated by a state ID or drivers license, and when you show a resident license, you have to support it with a DL from the same state. A fishing license is in effect a supplement to your state ID that entitles you to fish in your state. Obviously, though, it is reasonable that one cannot be eligible for a resident license or in-state tuition in two different states at the same time.
He doesn't necessarily use the roads or any other state services. His situation would apply to someone living in South Fulton TN who walks a few blocks to work in Fulton KY. Road maintenance does not come from state income tax, but mostly from the fuel tax.
Colleges and universities are not usually bound by state law, but establish their own rules about who is deemed to be an in-state student. A lot of people legally residing in Kentucky do not have eligibility for in-state tuition.
Car insurance premiums vary by zip code where your car is normally parked overnight, not by state lines.
This is not to say that he doesn't have a legitimate issue, but not all the responses have correctly addressed the rationale.
I pay fuel tax, state income tax, city income tax, state sales tax and am forced to contribute, against my will, to the state's employee retirement fund. I'd say I've paid more than my fair share.
Soon2B: I hate KY. I only took the position because I had been unemployed for several months and they were the first place to offer me a job. I'm leaving there ASAP and never looking back.
Red Wolf: I believe they have reciprocity on a state level but I'm not sure. I guess other people are in similar situations: Are we the only state?
jtur88: Great point about someone living near the state line! Did you ever live in TN or KY? Just a little surprised to see anyone else that's heard of Fulton/South Fulton.
And I'm not certain of all the details but I believe residency is determined by how long you've lived in the state. I believe you have to live in a state for a year before you can be considered a resident. Universities do this of course so people can't move to a state they've never lived in and then get the cheaper in state rate.
The thing is, it would be perfectly legal for someone to move into the state, live there for a year and not work (and thus not contribute anything) and still get the cheaper in state tuition because they are a resident. Non residents like myself, who've actually paid thousands into the system get screwed over.
I suspect it really has more to do with votes. If the people getting shafted have no say in government then nothing will ever change.
Sigh. If you earn income in a particular state, whether you live there or not, you are obligated to pay that state's personal income tax.
Let's lay it out.
The NY Yankees come to California to play the Oakland A's. Yankee players pay California state income tax on that portion of their salaries which is earned in California.
True for ALL states and ALL players, including foreigners such as the Expos and the Blue Wimps aka Jays.
Wanna complain about it? File a lawsuit and fight it all the way to the Supreme Court, where you will lose.
Unless otherwise determined, which can only happen at the Supreme Court, states may tax earnings that occur within their borders. End of story.
Sigh. If you earn income in a particular state...
Let's lay it out. ... End of story.
Not end of story; not even addressing the main issue..
You got the first half correct:
Almost all states that impose a personal income tax require that the tax be paid
on all income earned in the state, including income earned by non-residents.
But you missed the rest of the issue:
However, in order to relieve taxpayers of this double burden, many states have entered into state
tax reciprocal agreements. If two states have a reciprocal agreement and an individual lives in one
of those states and works in the other, the individual will only be subject to the income tax in the
state where he lives.
That sort of reciprocity exists between KY and five or six other nearby states.
Tennessee is NOT one of them. LINK
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