Wal-Mart Construction Contractors Ducking State Taxes

[DrGonzoLives]

Auditor seeks to tax temporary workers
Terre Haute Tribune-Star

A county official is questioning an opinion from state officials that temporary workers at a Vigo County construction site are not required to pay state or local income taxes.

In a March letter to the Indiana Department of Revenue, county Auditor Jim Bramble asked why workers were not paying income taxes after he was informed that two contractors were not withholding state gross income tax or county option income taxes from the pay of employees.

Bramble, in a second letter to the state agency, asked on Tuesday for “specific statutes, rules or regulations that would exempt the employers at the Wal-Mart construction site from withholding tax and their non-resident employees from an obligation to pay.”

If there is not a specific exemption applicable, Bramble asked the state Department of Revenue to require taxes be paid. “If these workers are subject to state and local income taxes, which I think they are, the county is losing out on some income taxes,” Bramble said Wednesday.

“I see no exemptions for temporary employment in the state law on this,” Bramble said.

[LiberalFighter]

1. If they are exempt then it should be easy solution for local govts

to only consider local/state companies using employees that are residents of the state.

In all liklihood they are exempt from at least state taxes. BUT they should not be exempt from COIT or other county taxes. If I live in a county that does not impose a county tax but work in a county that does I pay reduced county tax compared to a county resident.

There most likly is a reciprocal agreement between states to exempt state taxes but I think or thought it was only between neighboring states. In this case it would only apply to Michigan, Ohio, Illinois and Kentucky. If they are from another state they should not be exempt.