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Show t Leaving Utah after retiring may not relieve tax burden levied by state The penalties tor nonpayment can be stiff as well. States using the source tax can, in cases of noncompliance, non-compliance, bring liens against personal per-sonal property and assess fines and penalties through the host state or the Internal Revenue Service. In addition, there is no statute of limitations limi-tations on the amount owing. The state can, in effect, go back to the day the retiree leaves the state and demand the full amount with penalties. Utah is one of 1 3 states using the source tax levy. Arkansas, California, Califor-nia, Idaho, Iowa, Kansas, Massachusetts, Maryland, New Jersey, New York, Oregon, Vermont Ver-mont and Virginia also tax income, including annuities, of former residents who have set up house in other states. Currently, California is the most active at tracking down people who haven't paid, according to Lin-dhardt. Lin-dhardt. Most of the other states, including in-cluding Utah, have not put a lot of effort into prosecuting delinquent retirees. However, as states become more strapped for funds, that could change. There are 13 states which levy source taxes on annuitants no longer living in their jurisdiction. They are, from left to right, Oregon, California, Idaho, Utah, Kansas, Iowa, Arkansas, Virginia, Maryland, New Jersey, New York, Massachusetts and Vermont. since." Utah state tax officials say there is some relief from the levy. Once a retiree who has moved out of state has lived in their adopted state for one year, they can claim nonresident nonresi-dent status and be taxed at a lower rate. In addition, any taxes paid to the new state of residence can be used as a deduction when filing their Utah tax return. If a retiree moves to a state which has no personal income tax, the full amount of the levy can be incurred. By SCOTT SUMMERILL WASHINGTON, D.C. - Working Work-ing a lifetime with the ultimate goal of a comfortable retirement waiting at the end of the rainbow is part of the 'American dream.' But, if you think leaving Utah will relieve some of the tax burden on your retirement check, you could be in for a surprise. The long arm of the Utah State Tax Commission could keep its fingers in your pocket whether you stay in the state or not, according to tax commission officials. As long as the money originates in Utah, the payee is subject to pay a Utah source tax. A source tax is a levy imposed on income earned in a state having a personal income tax. Persons no longer living in, or having any ties to their former place of residence who collect retirement or other subsidies sub-sidies from that state are subject to the source levy. Being subject to Utah taxation while living out of state does not, however, allow an individual the right to reap any of the benefits implied by paying taxes, such as state sponsored programs, recognition recogni-tion by state and local officials and voting. The Revolutionary War slogan of "taxation without representation' has been heard in the U.S. Senate and House of Representatives when Representative Barbara F. Vuc-novich Vuc-novich (R-Nevada) and Senators Harry Reid (D-Nevada) and Richard Bryan (D-Nevada) introduced in-troduced legislation (S434 and HR1227) to end the controversial source tax. Utah Representative Jim Hansen (R) has joined the ranks of 77 cosponsors of the bill in Washington. Washing-ton. "Right now the bill is at a standstill," stand-still," said Hansen Legislative Assistant Alice Lindhardt. "It was referred to the subcommittee on employment compensation in March Mar-ch and we haven't heard anything |