O’Scanlon: NJ Should Participate in NH’s Lawsuit Against MA Over Taxation of Remote Workers

Senator Declan O’Scanlon said New Jersey would be wise to consider filing amicus briefs in support of New Hampshire’s lawsuit against Massachusetts to end the taxation of remote workers who no longer commuter across state lines to the Bay State.

“New Hampshire is well justified in challenging the unfair taxation of its residents’ income by Massachusetts now that many former commuters to the Bay State are working remotely from home,” said O’Scanlon (R-Monmouth). “New Jersey faces the same issue with our neighbor across the Hudson, only on a much larger scale.”

The Senate Budget & Appropriations Committee advanced legislation today that requires the State Treasurer to examine and report upon New York’s taxation of New Jersey residents’ income.

The measure, S-3064, was amended to include a provision requiring a discussion of New Jersey’s efforts to participate in the litigation between New Hampshire and Massachusetts, or if no efforts have been made, an explanation of why not.

“A federal court decision in New Hampshire’s lawsuit could very well impact New Jersey’s ability to pursue tax fairness with New York,” added O’Scanlon, a member of the Senate Budget Committee. “It’s imperative that we make every effort to defend New Jersey’s position while we still can.”

If New York were prevented from taxing the income of New Jersey residents who are working remotely from home, the State could generate hundreds of millions or billions in tax revenues while providing income tax savings to those former commuters who would no longer be subject to New York’s higher tax rates.