DRS: 12-711(b)-07, Compensation not constituting income derived from Connecticut sources

DRS has reproduced this regulation. This is an unofficial copy. Official copies of regulations ONLY are available from the Commission on Official Legal Publications   111 Phoenix Avenue Enfield, CT 06082   colp@jud.state.ct.us  Copies of DRS forms and publications are available at http://www.ct.gov/drs

Amended Effective 1/1/04  Old Version

Conn. Agencies Regs. 12-711(b)-7. Compensation not constituting income derived from Connecticut sources.

(a) Employees of interstate rail carriers, interstate motor carriers and interstate motor private carriers.

(1) Compensation paid by certain rail carriers.  No part of the compensation paid by a rail carrier, as defined in 49 USC 10102, providing transportation subject to the jurisdiction of the surface transportation board under 49 USC, subtitle IV, part A to an employee who performs regularly assigned duties as such an employee on a railroad in more than one state shall be subject to the income tax laws of any state or political subdivision of that state, other than the state or political subdivision thereof of the employee's residence.  (See 49 USC 11502.) Accordingly, where a nonresident individual is paid compensation as an employee by such a rail carrier for performing his or her regularly assigned duties on a railroad in more than one state, such compensation does not constitute income derived from or connected with Connecticut sources even though the employee performed services in Connecticut.

(2) Compensation paid by certain motor carriers and certain motor private carriers.

No part of the compensation paid by a motor carrier, as defined in 49 USC 13102(12), providing transportation subject to the jurisdiction under 49 USC, chapter 135, subchapter I or by a motor private carrier, as defined in 49 USC 13102(13), to an employee, as defined in 49 USC 31132, who performs regularly assigned duties in two or more states as such an employee with respect to a motor vehicle shall be subject to the income tax laws of any state or political subdivision of that state, other than the state or political subdivision thereof of the employee's residence.

Accordingly, where a nonresident individual is paid compensation as such an employee with respect to a motor vehicle by such a motor carrier or motor private carrier for performing his or her regularly assigned duties in two or more states, such compensation does not constitute income derived from or connected with Connecticut sources even though the employee performed services in Connecticut. (See 49 USC 14503.)

(b) Employees of interstate air carriers.  No part of the pay of an employee of an air carrier having regularly assigned duties on aircraft in at least two states shall be subject to the income tax laws of any state or political subdivision of that state, other than (i) the state or political subdivision thereof that is the employee's residence, and (ii) the state or political subdivision thereof in which the employee earns more than 50% of the pay received by the employee from the carrier.  For purposes of this subsection, an employee is deemed to have earned more than 50% of his or her pay in any state or political subdivision thereof in which such employee's scheduled flight time in such state or political subdivision is more than 50% of such employee's total scheduled flight time in the calendar year while so employed.

Accordingly, where a nonresident individual is an employee of an air carrier having regularly assigned duties on aircraft in at least two states, such pay shall not constitute income derived from or connected with Connecticut sources unless such employee earned more than 50% of such pay in Connecticut.  (See 49 USC 40116.)

(c) While this section pertains to Section 12-711(b) of the general statutes, for purposes of supplementary interpretation, as the phrase is used in Section 12-2 of the general statutes, the adoption of this section is authorized by Section 12-701(c) of the general statutes.

(Amended effective January 1, 2004.)