New Hampshire is demanding that Massachusetts cease collecting state income tax on Granite State residents who, since the pandemic, have been working remotely from their homes for Massachusetts companies. The State of New Hampshire does not impose a personal income tax on its citizens.
The Massachusetts Department of Revenue has been collecting income tax from New Hampshire residents who worked in Massachusetts before the pandemic, even though they’re currently working from their New Hampshire home. These Granite Staters have not crossed the state lines in months due to COVID-19. The proposed Emergency Income Tax Rule (enacted July 21) has implications beyond New Hampshire, undermining efforts for regional cooperation with regards to economic development.
A Massachusetts hearing is being held on August 27th with New Hampshire state officials taking part as the rule raises legal concerns and is not in line with New Hampshire’s policy choices.
New Hampshire Governor Chris Sununu said, “I did instruct Department of Business and Economic Affairs Commissioner Taylor Caswell and Attorney General Gordon MacDonald to submit written testimony based on a review our justice department just conducted.” He also is urging New Hampshire residents affected by the decision to send their comments to: firstname.lastname@example.org. Governor Sununu also sent letters to the Commonwealth of Massachusetts in objection to the ruling.
See the letters here: