BOSTON (WWLP) – Friday, the governor of New Hampshire announced that he plans to sue Massachusetts over the taxes they collect from out of state workers.
It all started when people began working from home early on in the pandemic which caused states to reassess their tax plans. Back in March, Massachusetts established a rule that would tax out-of-state workers who used to commute to the Commonwealth.
State officials believed the rule would help companies avoid having to completely change their payroll systems. However, Governor Chris Sununu of New Hampshire believes that the plan is unfair, especially for residents who are no longer traveling to the Commonwealth at all.
New Hampshire is one of only nine states that doesn’t collect income tax. And in the middle of a pandemic, Gov. Sununu believes that now is not the time to be hitting workers with additional taxes.
Before the pandemic, roughly 15 percent of new Hampshire commuters were traveling to Massachusetts for work a number that has now dropped dramatically, and lawmakers on both sides of the isle are hoping to see the policy change.