Company has been taking locality tax out of my check for 7 years

If I recall correctly I only pay 10% of my local city occupational tax where I live, park my rig and drive roughly 15-30 minutes of my day in and out. I estimated what percentage of an average week I spent on the clock driving, pre/post trip or the occasional delivery in my home city. My CPA filled out the exemption form and submitted to the local revenue commission.

 

I appreciate the education that I am getting in this thread. I have never been subjected to a local tax based on wages. I always thought that if you lived (your legal residency) within that local tax area that you had to pay whatever the rate was based on your income regardless of where you went or where you were when you made the actual money.

 

That’s what I’ve always assumed. Not sure why it would matter where you drove around at your day job. He lives and “works” in Decatur, GA as far as they are concerned.

 

Not to throw a wrench into this, but are you sure it is an occupation tax? Or is it income tax?
According to the wording in the DeKalb Tax code, the company pays the occupation tax, not the employee's.

ARTICLE II. - BUSINESS OCCUPATION TAXES | Code of Ordinances | DeKalb County, GA | Municode Library

 

What locality is charging the tax? For all I know the employers in The Locality are required to tax employee payroll without regard to where employees live. There are professional accountants and bookkeepers online that will answer technical questions for like $20. It seems it's better to have a solid answer from an expert in the topic (accounting) than rely on guesses, opinions of truck drivers. Taxes are both highly technical and they vary by location, so it seems only a truck driver or trucking company in the state/locality affecting you MIGHT have relevant experience to answer your question.

 

cities and states change their tax rates from time to time. The change in the amount of the locality tax doesn't necessarily mean the company made a mistake. It may indicate the tax changed. I be you to ask an accountant who can access tax rules for whatever locality the company is deducting from your pay. It doesn't really matter AT ALL if other states and cities do things the same way or different ways IN YOUR PARTICULAR CASE. It would be like telling your wife-girlfriend "you can be mad at me for doing that, other women don't mind." Each city/state/woman make their own rules.

 

Taxes and laws and regulations ARE NOT MATTERS OF COMMON SENSE. They are matters of what words are official and how judges interpret those words. "It doesn't have to make sense, it's the law."

 

Maybe a tax lawyer in your state could give you more accurate information.
Relying on opinions in the peanut gallery is never the best idea.