State income tax for non resident outside salepeople?

[yetiyeti]

Yes, beside each of 1-32 will state if they are subject to or not subject to.

If they are not subject to tax withholding, then they are not subject to state income tax as an individual.

[Gman2007]

I have suggestion - consult a tax attorney?

[Joe Doer]

Professional athletes have to pay taxes for each place their team plays. Can you image the headache their CPA has with that situation?

When the Portland Trailblazers play the NY Knicks each player has to paid New York state and city taxes based on 1/82 of their annual pay.

You can get an answer to your question by consulting a CPA. An internet forum is a waste of your time.

[bigtrees]

Originally Posted by Joe Doer

Professional athletes have to pay taxes for each place their team plays. Can you image the headache their CPA has with that situation?

When the Portland Trailblazers play the NY Knicks each player has to paid New York state and city taxes based on 1/82 of their annual pay.

You can get an answer to your question by consulting a CPA. An internet forum is a waste of your time.

That does sound like a headache. I've never thought about it - but the athletes are benefiting from the roads, stadiums, arenas, and other services of the city, so it makes sense they should pay.

Fortunately, NBA players can afford to hire CPAs so I guess it's not much headache for them and $$$ for their CPA.

[Joe Doer]

I wonder if this situation is the same as sales tax?

If you live in WA and buy something from outside the state the seller is not obligated to collect sales tax for the state of WA. As soon as that seller establishes business in WA, even if the product was shipped from out of state he is now obligated to collect sales tax.

For example, Cabelas has sold items through catalogs and the internet all over the country for years without collecting sales tax for anything sold out of state. As soon as Cabelas opened the store in Lacey, sales tax had to been added to all internet and phone orders for all shipments to the state of WA. Cabelas now has to collect sales tax for every state that has a retail location(except Montana with no sales tax)

I am thinking as soon as an office is established in Missoula for a WA company, the business now falls under authority of both states. Like I said before...ask a CPA.

[bigtrees]

Originally Posted by Joe Doer

I wonder if this situation is the same as sales tax?

If you live in WA and buy something from outside the state the seller is not obligated to collect sales tax for the state of WA. As soon as that seller establishes business in WA, even if the product was shipped from out of state he is now obligated to collect sales tax.

For example, Cabelas has sold items through catalogs and the internet all over the country for years without collecting sales tax for anything sold out of state. As soon as Cabelas opened the store in Lacey, sales tax had to been added to all internet and phone orders for all shipments to the state of WA. Cabelas now has to collect sales tax for every state that has a retail location(except Montana with no sales tax)

Kind of. Business income tax sounds quite similiar. It sounds to me that the "no sales tax for out of state people" rule is derived from the Public Law the OP mentioned or something similiar. The laws about business taxes are complicated and I sure don't want to try to advise people on how they work. I know a lot more about individual income taxes.

From what I could tell, the OP's question was really about individual income tax. The OP was hoping that since her husband was a non-resident, he wouldn't have to pay taxes. Unfortunately, nonresidents also pay income tax in Montana, so it doesn't work that way. Individual income taxes are a different animal than sales taxes.

[yetiyeti]

Originally Posted by Gman2007

I have suggestion - consult a tax attorney?

I didn't realize that the topic could be a potentially complex one until Sunday. The additional info I posted yesterday was from a corporate tax attorney

[yetiyeti]

Originally Posted by Joe Doer

Professional athletes have to pay taxes for each place their team plays. Can you image the headache their CPA has with that situation?

When the Portland Trailblazers play the NY Knicks each player has to paid New York state and city taxes based on 1/82 of their annual pay.

You can get an answer to your question by consulting a CPA. An internet forum is a waste of your time.

Moderator cut: see note below

You bring a good point about athletes. They as well as entertainers are huge targets because of they are a publicly seen figure. Many state have now been imposing the income tax on the managers, trainers, coaches and support staff.

The true reality is, it is much easier for a state to impose income tax on non residents than it is to increase taxes for residents.

The situation has been escalating over the years as telecommuting is now very common for major corporations. It has become a compliance nightmare not only for athletes, but especially for the salespeople who travel for all lengths of time including overnight trips. It's been acknowledged that the imposing states have gone overboard.

However, there are some states that have a reciprocal agreement with each other.

[yetiyeti]

Originally Posted by Joe Doer

I wonder if this situation is the same as sales tax?

If you live in WA and buy something from outside the state the seller is not obligated to collect sales tax for the state of WA. As soon as that seller establishes business in WA, even if the product was shipped from out of state he is now obligated to collect sales tax.

For example, Cabelas has sold items through catalogs and the internet all over the country for years without collecting sales tax for anything sold out of state. As soon as Cabelas opened the store in Lacey, sales tax had to been added to all internet and phone orders for all shipments to the state of WA. Cabelas now has to collect sales tax for every state that has a retail location(except Montana with no sales tax)

I am thinking as soon as an office is established in Missoula for a WA company, the business now falls under authority of both states. Like I said before...ask a CPA.

Sales tax is another complex issue completely separate to corporate franchise tax or individual state tax. 86-272 has nothing to do with sales tax as the bigtrees implies

[Kristynwy]

ok this thread is getting pointless, I have had to repeatedly delete arguments, please remember this is a public forum we all have different opinions, and instead of being thin skinned we just need to respect everyone's opinions.

I am going to close the for now... really going no where at the moment.