New Hampshire is demanding that Massachusetts stop imposing a state income tax on New Hampshire residents working remotely from their homes for Massachusetts companies.
In a letter to the Baker administration sent on Friday, New Hampshire Gov. Chris Sununu says he would like to avoid taking the issue to court.
“These comments articulate our serious policy and legal concerns with Granite Staters being taxed in Massachusetts when they have not crossed the state line in months due to the COVID-19 pandemic,” said Sununu. “It is my hope that this matter can be resolved promptly and in a manner that removes any necessity for New Hampshire to consider legal remedies.”
Under an emergency Massachusetts regulation enacted on July 21, people who worked in Massachusetts before the pandemic still must pay Massachusetts income tax if they're working from home in another state. The regulation is in effect until Dec. 31, or 90 days after the state of emergency is lifted in Massachusetts. This regulation has raised strong objections in New Hampshire, which does not levy an income tax, and prompted a review by the state's Department of Justice.