May 28, 2021

Senators Hassan, Shaheen Introduce Legislation to Prevent Other States from Unconstitutionally Taxing Granite Staters

WASHINGTON – In case you missed it, U.S. Senators Maggie Hassan and Jeanne Shaheen introduced a bill to prevent other states from unconstitutionally taxing Granite Staters who telework for companies located in another state. With more Americans than ever working remotely because of the COVID-19 pandemic, the Multistate Worker Tax Fairness Act would simplify the tax code by establishing a simple, uniform standard based on physical presence in order to ensure that teleworkers are not taxed unfairly. Representative Chris Pappas will be co-leading the House companion bill.  

 

The Senators’ Multistate Worker Tax Fairness Act comes after President Biden’s acting Solicitor General urged the United States Supreme Court to not hear New Hampshire’s complaint against Massachusetts for wrongly taxing Granite Staters.

 

See below for coverage highlights.

 

WMUR: Hassan, Shaheen join in introducing bill to stop Massachusetts from taxing NH home workers

By John DiStaso

 

U.S. Sens. Maggie Hassan and Jeanne Shaheen have joined in the introduction of a bill that would protect Granite Staters who are working from home for out-of-state companies from future income taxes imposed by the companies’ home states.

 

An announcement from Hassan’s office Thursday came after the Biden administration’s acting U.S. solicitor general sided with Massachusetts against New Hampshire in an income tax dispute between the two states.

 

[…] U.S. Rep. Chris Pappas will be a leading cosponsor of a similar bill in the House – as he was last year, along with U.S. Rep. Annie Kuster, on a bill addressing the issue that did not reach a vote.

 

[…] According to a statement from Hassan’s office, the Multistate Worker Tax Fairness Act “establishes a simple, uniform federal standard based on a worker’s physical presence. The bill prohibits a state from imposing an income tax on the compensation a nonresident earns when that person is not physically in the state, and it ensures that people with out-of-state employers who telework, or whose job requires them to occasionally work in another state, do not have to pay out-of-state income taxes.”

 

Hassan spokesperson Laura Epstein said the bill would take effect when passed, but added, "Senator Hassan has pressed this issue on multiple fronts. She believes that these unconstitutional taxes must also be undone retroactively, and the Supreme Court should rule to do that."

 

[…]“Granite Staters living and working in New Hampshire shouldn’t have to pay another state’s taxes. It is as simple as that,” Hassan said. “Yet, with the expansion of remote work during the pandemic, we’ve seen states attempt to infringe on Granite Staters’ rights.

 

“This bill makes it clear once and for all that other states cannot unconstitutionally tax New Hampshire residents.” […]

 

“As we’re working to get our economy back on track, we should pursue every avenue available to support, not punish, American workers who have struggled to make ends meet during these enormously challenging times,” Shaheen said. “Many Granite Staters have been working remotely during this pandemic to protect the health of their families and communities, and they should not be penalized for it.”

 

AP: Senate passes 3 virus bills, some vaccination sites to close

By Holly Ramer and Kathy McCormack

 

[…] Sens. Maggie Hassan and Jeanne Shaheen on Thursday introduced legislation that would prevent other states from taxing New Hampshire residents who telework for companies located in another state.

 

“Granite Staters living and working in New Hampshire shouldn’t have to pay another states’ taxes, it is as simple as that,” Hassan said in a statement. “This bill makes it clear once and for all that other states cannot unconstitutionally tax New Hampshire residents.”[…]

 

Law 360: NH Senators Back Banning States Taxing Remote Workers

By James Nani

 

New Hampshire's Democratic U.S. senators Thursday backed legislation to prevent states from taxing telecommuting workers without a physical presence in their borders, a push that comes as the U.S. Supreme Court weighs whether to take a challenge to the practice.

 

New Hampshire Sens. Maggie Hassan and Jeanne Shaheen threw their support behind the Multi-State Worker Tax Fairness Act, sponsored by Hassan and Sen. Richard Blumenthal, D-Conn., arguing the legislation would stop other states from taxing New Hampshire residents who telework for companies based in other states. The bill would make it illegal for states to impose income tax on employees who work remotely for an out-of-state employer.

 

"Granite Staters living and working in New Hampshire shouldn't have to pay another state's taxes, it is as simple as that," Hassan said. "Yet with the expansion of remote work during the [coronavirus] pandemic, we've seen states attempt to infringe on Granite Staters' rights."

 

Sydney Petersen, a Hassan spokeswoman, told Law360 that the bill is a "major priority" for the senator, who will work with her colleagues to gain support.

 

[…] After the acting solicitor general weighed in against New Hampshire's challenge, Shaheen and Hassan criticized the position.

 

Hassan said the Biden administration had taken the "wrong position" and the Supreme Court must hear the case. […]

 

Manchester Ink Link: Bipartisan New Hampshire opposition to opinion that Supreme Court should not take up lawsuit against Massachusetts

By Andrew Sylvia

 

[…] “This is the wrong position by the Biden administration. I’ve long said that attempts by other states to unfairly tax New Hampshire residents are unconstitutional,” said U.S. Senator Maggie Hassan. “The Supreme Court must hear this case and reverse this bad-faith effort. We need strict and clear limitations set upon states that attempt to wrongly tax Granite Staters and I will continue to push to ensure exactly that.”

 

Hassan, Shaheen and Congressman Chris Pappas (D-NH) are re-introducing versions of legislation co-sponsored last year by Pappas and other Congressmen from states with residents in similar situations. […]

 

“I’m disappointed by the Biden administration for urging the Supreme Court to decline the case that would reverse an unfair, and I believe unconstitutional, tax burden on Granite State workers, especially those who have been working remotely throughout this pandemic,” said U.S. Senator Jeanne Shaheen. (D-NH) “I’ve continuously pushed back against this requirement and have worked to advance legislation in Congress to prevent this abuse of Granite State workers by other state governments. I’ll keep fighting to find a path forward that protects New Hampshire workers from this improper out-of-state influence.”

 

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