Monday Musings: June 28, 2021

Jun 28, 2021

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Public Trust Credit Team
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SCOTUS scuttles state plans to challenge permanent tax jurisdictions

The Supreme Court decided to throw out New Hampshire’s challenge of Massachusetts’ so-called “permanent tax jurisdiction” that allows Massachusetts to tax workers that have moved and begun telecommuting out of state. Five states have these laws including and most notably New York. Had the court decided to take the case, billions of tax revenues could have been at stake for surrounding states. New Jersey is well known for having to credit its taxpayers that work in New York for large sums of tax revenue, and a different ruling could have allowed New Jersey to claw back an estimated $1.2 billion in revenue. As telecommuting becomes more commonplace, we could see more challenges to these laws; but for now, states with large commuter bases can hang onto their tax revenues, even from telecommuters.  

All comments and discussion presented are purely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on foreseen and unforeseen events. The information presented should not be used in making any investment decisions. This material is not a recommendation to buy, sell, implement, or change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose. Past performance is not an indication of future performance. Any financial and/or investment decision may incur losses.

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