SCOTUS Sides With Massachusetts Over N H In Income Tax Collection Spat nhpr.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from nhpr.org Daily Mail and Mail on Sunday newspapers.
Credit Jimmy Emerson, DMV/Flick Creative Commons
The state of New Hampshire announced Friday it will file a federal lawsuit against Massachusetts over its cross-border income tax collection policies during the pandemic.
The lawsuit centers on a Massachusetts emergency provision that caps how much income out-of-state residents who work for Massachusetts-based companies can deduct on their income taxes while working remotely.
Despite receiving complaints from New Hampshire elected officials, Massachusetts issued a public notification earlier Friday that it would extend the controversial policy through at least the end of the calendar year.
The policy negatively affects tens of thousands of New Hampshire residents who previously commuted across the state’s southern border for work, but are now working from home due to the coronavirus pandemic.
Credit Jimmy Emerson, DMV/Flick Creative Commons
The Attorney General of Massachusetts is asking the U.S. Supreme Court to decline a petition filed by the State of New Hampshire over cross-border income tax collections during the pandemic.
In October, New Hampshire filed a lawsuit alleging a temporary tax regulation enacted by its neighboring state during the pandemic violated New Hampshire’s sovereignty.
The tax provision, which was enacted in April during the first weeks of the pandemic, essentially froze how much income out-of-state residents who work for Massachusetts-based entities can deduct on their income taxes while working remotely.
The temporary provision created bipartisan uproar in New Hampshire, where tens of thousands of workers who previously commuted across the border are working remotely due to COVID-19, resulting in many residents paying income taxes to a state they now don’t set foot in.