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

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

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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