Originally Posted by gindie
This city has attempted to get the Air Force to apply this tax to the government workers as well as the contractors, without any success so far.
That's a new one on me. The good news is that the city is going to have a heck of a time getting the Air Force to do anything that's outside of their regulations and practices. So I would just let the bureaucracy work in your favor this time.
On the question of local income taxes, I don't see how a city can charge income taxes for work done on federal land. This would be equivalent to their charging city income taxes for work done in a different city. The federal land is just that, land that belongs to the federal government and not to the city. As a precedent, any goods and services bought on a base are exempt from local taxes. Does the city provide any services at WPAFB? No, they are all provided by the Air Force, and if the Air Force did call for a city service, you bet they would be charged for it.
I would just ignore the issue and if they send you a direct bill, I would ask to see the 1940s law they are referring to. I think you should write to your local state and federal legislators about this issue.