As White House Seeks to Promote Telecommuting, States Are Raising Barriers Through Counterproductive Tax Policies

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

Telecommuting is receiving unprecedented attention in Washington, with the White House, the U.S. Office of Personnel Management (OPM), and the Federal Communications Commission (FCC) calling for policy changes to help expand a work arrangement widely seen as a solution to pressing national problems. Yet state tax authorities seem not to be hearing the call. Through tax policies intended to enhance revenue collections, some states are creating barriers to telecommuting. In this article, author Nicole Belson Goluboff, member of the Telework Coalition advisory board, addresses two egregious examples of counterproductive state tax policy—New York's “convenience of the employer” rule and New Jersey's attempt to use telecommuting as a basis for asserting nexus over out-of-state companies.

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