Louisiana income tax for offshore workers

A blogger asked:

We just acquired a number of vessels that haul crude oil products along the Eastern coast line, Gulf, and Puerto Rico.  The vessels are dispatched out of Louisiana.  The employees live all over the place and where their residence  requires state withholding we are withholding that state income tax.

What I am  unsure of is:  when the employee lives in Texas,Tennessee or any other state  that does not require state income tax withholding, are we required to withhold Louisiana state income tax?

The general guidelines:

Louisiana considers that the waters within three miles of its coast are within the state of Louisiana, and this is the general standard to use when determining if Louisiana tax applies.

Advertisements

7 thoughts on “Louisiana income tax for offshore workers

  1. HI, I DO HAVE A GOOD QUESTION UNDER STATE OF LOUISIANA TAX; A SEAMAN WHO WORK OFFSHORE 28 DAYS OFFSHORE AND 14 DAYS OFF ON FEDERAL WATERS MORE THAN 3 MILES OFF LOUISIANA COAST LINE IS EXEMPT FOR STATES TAX FROM LOUISIANA BECAUSE THE U.S. TITLE 46 SHIPPING SUBTITLE II PART G MERCHANT SEAMAN PROTECTION AND RELIEF SECTION 46 : TAXES’ ? THIS IS A FEDERAL AND FEDERAL LAW IS ABOVE STATE LAW SO IF THE STATE LAW IGNORED THE ABOVE PROTECTION FOR SEAMAN IS THIS A VIOLATION OF FEDERAL LAW ? PLEASE ANSWER OK THIS WILL HELP A LOT OF SEAMANS HERE . THANK YOU.

  2. Interstate seamen and ship crew members: Federal law, P.L. 106-489, effective
    November 9, 2000, prohibits states and localities from imposing their income taxes on
    compensation paid to nonresidents for manning vessels operating on the navigable waters of
    more than one state. Only the state and locality of residence are allowed to tax the
    compensation of masters, officers, and crew members for performing regularly-assigned duties
    on vessels operating on the navigable waters of more than one state. The same restriction
    applies to the income of individuals for performing assigned duties on a vessel in more than one
    state as a licensed pilot. [46 U.S.C. §11108(b); Miscellaneous Multistate Materials ¶ 11108(b).]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s