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New Hampshire Investigates Taxation Of Remote Workers

New Hampshire is investigating whether other states are improperly taxing its residents during the coronavirus pandemic.

The review by the state Department of Justice announced Wednesday was sparked by a recent emergency regulation enacted in neighboring Massachusetts. According to the July 21 rule, residents in other states who were working in Massachusetts before the pandemic are subject to Massachusetts’ income tax while they work from home.

The regulation, which is in effect until Dec. 31 or 90 days after the state of emergency in Massachusetts is lifted, raised strong objects in New Hampshire, one of nine states without an income tax.

“We need to maintain that New Hampshire advantage at all costs,” Republican Gov. Chris Sununu said in a statement. “We will take immediate steps to stop any attempts to impose income taxes on Granite Staters in a manner that violates the law or the New Hampshire or United States Constitution.”

Meanwhile, Democratic state Sens. Dan Feltes and Lou D’Allessandro wrote to Massachusetts Department of Revenue Commissioner Geoffrey Snyder asking him to reconsider.

“That’s unfair, that’s anti-worker, that’s anti-public health, and it rests on, at best, shaky legal grounds,” they wrote. “In the interest of public health, protecting workers, and protecting our regional relationship, we respectfully encourage you to withdraw the tax rule change penalizing New Hampshire residents who now work remotely due to COVID-19.”

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