New Jersey impacted by Supreme Court’s decision to decline New Hampshire-Massachusetts tax case
(The Center Square) – The U.S. Supreme Court declined to take up a case the state of New Hampshire filed against Massachusetts to address cross-border taxation, a decision that could have ramifications in New Jersey.
New York tax officials contend New Jersey residents must still pay income tax in the Empire State even if they worked remotely amid the COVID-19 pandemic. The Wall Street Journal previously reported that New York state tax officials were auditing New Jersey residents’ tax returns.
New Jersey Gov. Phil Murphy has suggested the outcome of the New Hampshire-Massachusetts case would help resolve the New York tax issue. The nation’s highest court didn’t weigh in on the litigation in refusing to allow the Granite State to sue its neighbor.
“The Supreme Court may not have wanted to issue a ruling on a temporary matter that might be resolved on its own,” state Sen. Steven Oroho, R-Sussex, said in a news release.
“That doesn’t mean a direct challenge by New Jersey of New York’s perpetual taxation of remote work arrangements that have become permanent would be rejected,” Oroho added. “I would suggest it’s time for Governor Murphy to stop hiding behind others and start defending New Jerseyans on his own.”
Oroho has called on the Murphy Administration to push back on New York’s tax position, saying the Garden State could bring in an additional $1 billion or more per year in tax revenues while reducing tax bills for New Jersey workers. New Jersey Attorney General Gurbir Grewal filed an amicus brief in support of New Hampshire.
“We are disappointed in the Supreme Court’s decision to decline to take the case, maintaining the status quo despite the unprecedented challenges presented by the pandemic,” Darryl Isherwood, a spokesman for Murphy, said in an email to The Center Square. “New Jersey is being unfairly harmed and we will continue to seek avenues to fight for the rights of our taxpayers.”
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