Supreme Court dismisses New Hampshire lawsuit over income tax dispute

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Governor Chris Sunono said Monday that the Supreme Court is “setting a costly precedent” in refusing to allow New Hampshire to sue neighboring Massachusetts over an income tax dispute involving people who were working from home during the COVID-19 pandemic. The judges dismissed the New Hampshire complaint without comment. The state objects to Massachusetts collecting income tax from about 80,000 New Hampshire residents who work for Massachusetts businesses, but who were working remotely. New Hampshire wanted judges to declare Massachusetts groups unconstitutional and order money back to people who pay taxes just over 5%. This issue is particularly sensitive in New Hampshire, which lacks a state income tax. But New Hampshire also got support from New Jersey and Connecticut, among others. Residents of those states who work for New York corporations generally pay state income tax to New York. The Biden administration recommended that judges stay out of the dispute. Judges Samuel Alito and Clarence Thomas said they would have allowed the lawsuit to proceed. Sununu issued a statement about the decision, saying, “By siding with the Biden administration and allowing improper taxation of New Hampshire citizens, the Supreme Court is setting a costly precedent. This decision will have lasting repercussions for thousands of Granite State residents.”

Washington –

Governor Chris Sunono said Monday that the Supreme Court is “setting a costly precedent” in refusing to allow New Hampshire to sue neighboring Massachusetts over an income tax dispute involving people who were working from home during the COVID-19 pandemic.

The judges dismissed the New Hampshire complaint without comment. The state objects to Massachusetts collecting income tax from about 80,000 New Hampshire residents who work for Massachusetts businesses, but who were working remotely.

New Hampshire wanted judges to declare Massachusetts groups unconstitutional and order money back to people who pay taxes just over 5%.

This issue is particularly sensitive in New Hampshire, which lacks a state income tax. But New Hampshire also got support from New Jersey and Connecticut, among others.

Residents of those states who work for New York corporations generally pay state income tax to New York.

The Biden administration recommended that judges stay out of the dispute. Judges Samuel Alito and Clarence Thomas said they would have allowed the lawsuit to proceed.

Sununu issued a statement about the decision, saying, “By siding with the Biden administration and allowing improper taxation of New Hampshire citizens, the Supreme Court is setting a costly precedent. This decision will have lasting repercussions for thousands of Granite State residents.”

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