Tuesday, October 27, 2020
The Columbia Journal of Tax Law has published a new issue of its Tax Matters feature, Vol. 12, No. 1 (Oct. 21, 2020):
Darien Shanske (UC-Davis), Remote Workforce Doctrine and Policy: Short-Term and Long-Term Considerations
The challenge of how to tax employees who commute or work between states did not arise with the current pandemic. A leading state and local tax professor challenged New York’s approach to the issue in 2003, pursuing his claim to the New York Court of Appeals. Congress has been considering bills on the issue for at least ten years. The Multistate Tax Commission, an intergovernmental agency that promotes uniform state tax law (among other things), approved model legislation for a mobile workforce statute in 2011.
Yet, without a doubt, the current crisis has made these issues more pressing, as many more employees are working at home in one state where once they commuted into a neighboring state for work. Some states that stand to lose taxes paid by those employees who are no longer commuting have taken the position that the tax employees would have paid is still due.