New Hampshire Governor Sununu says there are higher taxes promoting urban flight

The New Hampshire governor said Kovid-19 is putting New Yorkers in the state in fear of high taxes and their safety amid the crisis.

“We are booming,” New Hampshire Government. Chris Sununu told CNBC. “People are coming in from all over the country, especially in the Northeast. You’re in New York. You have a mayor who doesn’t do what he’s doing. You have years of terrible policy out of Albany. People have There are options and 2020. Those decisions are driving them. It seems they put a big sign on the Brooklyn Bridge that says ‘Turn the lights out at last.’ ”

New Hampshire’s real estate is selling quickly, Sununu said, adding that he has been receiving frequent calls from companies looking to move the “Live Free or Die” state.

An issue with some of the new residents of their state may be that they continue to work for out-of-state employers, as many companies are allowing people to work from home to prevent the spread of coronovirus Huh.

The Republican governor said New York, Massachusetts and other high-tax states are “pickpocketing” New Hampshire residents by taxing out-of-state employees who are no longer coming to their states to work.

Sununu said his state attorney general is reviewing Massachusetts’ decision to continue to tax employees who worked in Massachusetts, but worked from home in New Hampshire during the epidemic. He said that high-tax states like New York have no right to tax people who do not live or work in their state.

“When it tries to pick up people’s pockets in New Hampshire in New York, Massachusetts, California, we’re going to stand up for them,” Sununu said. “They are coming after our citizens and we are going to fight.”

In March, Massachusetts established a rule that would tax state workers who immigrated to Massachusetts. The rule was recently extended, possibly by the end of the year. The state said the rule was intended to help companies avoid overhauling their payroll systems.

Sununu said that this is unfair to the residents of his state and could be illegal. Prior to Kovid, more than 80,000 New Hampshire residents created uproar in Massachusetts – many in Boston.

Taxpayers can often get credit for taxes paid for another jurisdiction over their state taxes. But New Hampshire has no broad-based income tax, so its residents cannot apply credits from Massachusetts taxes. The top income tax rate in Massachusetts is 5.05%.

Sununu said, “You don’t start taxing people across the border.” “You don’t make new rules and gimmicks.”

There is a possibility of fighting between states about how to treat former travelers during the epidemic. Each state has different rules for how they typically treat employees outside the state. But the most aggressive states, such as New York and California, have said they will continue to implement their out-of-state tax policies – even if those former travelers are no longer traveling to office.

With so many states tied to revenue, some workers can receive double taxation by the state they used to work in, and the state they are living and working in.

It is unclear whether the efforts of New Hampshire will air in court. The state has a long history of vigorously defending its other tax claims, not always successfully. It fought efforts by other states with sales tax to require businesses outside their borders to collect and remit sales tax on their behalf. New Hampshire eventually had to comply with the Supreme Court’s 2018 decision in South Dakota v. Wayfarer, although the state legislature requires any state or local tax authority to notify the New Hampshire Attorney General.

Tax experts say the situation raises a big question about how new employees in the states will be hired for remote work.

“In the case of New Hampshire, you have taxpayers whose residence and place of work is now in New Hampshire and they are not stepping foot in Massachusetts,” said Jared Valsek, vice president of state projects for the Tax Foundation. “Massachusetts is arguing that because they still have office space, they can tax them.”

For New York, the cost of any change or federal law can be costly. It collects about a fifth of its tax revenue from travelers. Gov. Andrew Kyomo has said that congressional efforts – including a resolution by Sen. John Thune – “could be very costly” for New York City to curb the state’s abilities to tax state workers.

Yet Walczak said efforts have been made to tax New Yorkers who do not live in New York and are not working there, who may remain on the backfoot for longer, leading major companies to reduce their offices Or transfer to non-taxed states.

“If a large percentage of a company’s workforce is remote, then their office matters less and less,” he said. “So if you’re a small firm in Manhattan, and now 80% of your workforce is telecommuting, and your employees are double taxed, then there may be a really strong argument for relocating to New Jersey or another state , Where your employees are. Taxed only once. “


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