Pappas Statement on Massachusetts Decision to Tax NH Remote Workers
Today, Congressman Chris Pappas (NH-01) released the following statement after the Massachusetts Department of Revenue published a final rule which unfairly continues to levy a Massachusetts state income tax on New Hampshire residents who are working from home because of COVID-19:
“This rule change by Massachusetts extends an outrageous cash grab targeting Granite Staters who are doing their part to stay home and stay safe during a pandemic,” said Congressman Chris Pappas. “At a time when many New Hampshire residents are teleworking from home in order to keep their families and their communities safe, it is completely unfair for Massachusetts to levy an income tax on these workers. As I’ve said before, we aren’t going down without a fight on this. The long arm of the Massachusetts tax collector should not be reaching into New Hampshire residents’ wallets.”
“Legislation I am leading, the Multi-State Workers Tax Fairness Act, eliminates overly complex and unfair multi-state tax codes and ensures that employees will only be subject to the tax laws of their state when they telework,” continued Pappas. “I will continue to push House leadership to bring this bill to a vote on the House floor, and urge my colleagues of both parties to support this legislation to ensure fundamental fairness for all our workers.”
During the COVID-19 pandemic, telework has become necessary across a range of industries to keep workers and their families safe. Unfortunately, in a break from clearly established precedent, the Massachusetts state government (and other neighboring states) are currently forcing Granite Staters who are employed by Massachusetts companies to pay Massachusetts state income tax on money earned from telework in New Hampshire.
The Multi-State Worker Tax Fairness Act will protect New Hampshire residents from unfair taxation by clarifying that workers are only required to pay income tax to the state where they were physically present when the income was earned. Specifically, for teleworking Granite Staters employed by companies based in other states, the bill would eliminate the need to pay any state income tax whatsoever.
In September, Pappas joined the Tax Foundation for a round table discussion of his Multi-State Worker Tax Fairness Act and his advocacy for Granite Staters who are working from home during COVID-19 for companies based in other states.