Appendix 6

Table 19

Tax Study States' Local Income Taxes
(Not Included in Revenue Reports)

State

Cities and Counties that Tax

City Tax Rates (resident)

City Tax Rates (non-resident)

FY 95 Revenues ($ in Millions)

Income Tax Based on:

New York

New York City

2.2-3.4%

0.45%

$3,470.00

Salaries, wages, commissions, and other earned compensation. New York City income tax for unmarried residents ranges from 2.2% of the first $8,000 of city taxable income to 3.4% over $60,000. In addition to other taxes, city residents are subject to a temporary surcharge on taxable income for taxable years beginning after 1989 and before 1997. Surcharges for unmarried residents range from .51% to .55%.

Yonkers (Westchester)

15% of net state tax

0.5% of net earnings within city

$21.70

Yonkers residents pay 15% of net state tax (after property tax credit); nonresidents pay .5% of wages earned within the city. In addition, residents are subject to a 2.85% tax on minimum taxable income. For each tax year beginning after 1990 but before 1996, residents are subject to a tax of 14% of the sum of the basic city income tax and surcharge.

Oregon

Clackamas, Multnomah, and Washington counties (Portland area)

0.62%


$108.30

Taxes are imposed on the total payroll of employers. Includes financial institutions and corporations that perform services in the transit district service area.

Lane County Mass Transit

0.56%




Notes:

Source: Significant Features of Fiscal Federalism, Budget Processes and Tax Systems, Volume 1, September 1995,

Tax Rate Information as of Nov. 1994.

Advisory Commission on Intergovernmental Relations, pp. 120-1, 96-7, 72-3, 103-4, 144-5, 91.

Source for NY revenue information: Office of Tax Policy and Analysis, NY State, 11/1/96.

Source for OR revenue information: State of Oregon Dept. of Administrative Services Budget and Management Division, 11/1/96.