[Julie Jordan]

All states have laws that require a non-resident to pay income tax on income earned in a state. As you can imagine, few file non-resident returns and claim that income so more and more the states are withholding to make sure the state gets their tax. It is a withholding of tax, not a tax, so all you have to do is file a non-resident return for the state and get your refund. Also, states have reciprocity agreements with each other so if you do pay tax in another state you get a credit on one of the returns so the income isn't technically double-taxed.