AM I REQUIRED TO SEND W2 COPY 1 TO MY STATE AND LOCAL TAX DEPARTMENTS?

Most state and local tax departments require that you do.

As TAXOH stated, most states do.  However, since you don't say what state you are dealing with, you can always go online to your state's department of revenue website to get that answer.

the state and local agencies in most cases require that you have a copy sent to them unless you e-file to them then they may not

Yes, how else do you suppose the state gets those records so they can check up on the tax cheats?

I don't know about you, but on my software Copy 1 says "For state, city or local tax department". That leads me to believe that those copies must be sent to them.

It depends on the state.  NY State requires a summary of W-2 info - Form IT-2 attached to the return if you mail it in or e-file it.  If you are preparing w-2s for employees, just send the red copies to SSA  with a w-3 and I believe the info is forwarded to each state from there.

I SHOULD HAVE BEEN MORE SPECIFIC.

IM IN SANTA BARBARA CALIFORNIA, AND THIS IS REGARDING A BUSINESS NOT AN INDIVIDUAL.

SINCE SUBMITTING THIS QUESTION THIS MORNING I FOUND OUT THAT CAL STATE DOES NOT REQUIRE A W2 COPY 1 BECAUSE WE ALREADY GIVE THEM THIS INFORMATION ON THE QUARTLEY 941.

AS FAR AS LOCALLY IS CONCERNED. I FOUND NO LOCAL TAX DEPARTMENT.

THE LOCAL IRS SAID IT WAS NOT FOR THEM. AND THE LOCAL TAX COLLECTOR SAID THEY ONLY DO PROPERTY TAXES.

SO IM GOING TO SAY THE ANSWER IS NO TO BOTH.

I think you need to uderstand if it is a business return for the State of California the IRS and Local Property Tax Collector in Santa Barbara would not know any more than you do. Call the State of California and talk with them in Sacramento. The local tax department would not need a copy of the 941

Priscilove:

You have basically the right answer IF the question you are asking is about annual payroll reporting and not about filing a business income tax return. 

For annual payroll reporting, California does not need the w-2 copy and has no local jurisdictions that do. The few local jurisdictions that do, like New York City, are in your face about their requirements. The states that require annual filing have a transmittal form like the federal. 

California does not receive information from the 941, which is the federal quarterly payroll form. California has it's own forms - DE, filed quarterly, along with income tax withholdings, disability insurance and state unemployment payments.

IF you are talking about filing a state Income Tax Return, for business or individuals, then the state w-2 copy is attached to the tax return - always, just like the federal, wherever the income and withholdings are included on the return.

I have the same question but Iam in FL. I called my state and the lady I spoke with acted like I was crazy. She said all I send to them is the UCT6 quarterly unemployment report. I am not so sure she is correct so if I could get some clarification it would be great.

I think she is correct.  Florida does not have individual state income taxes so they would have no use for state W-2s.

Can you please tell me where to send Copy 1.  I can't seem to find an address.  I am from Massachusetts.