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New York Court Says Telecommuters Must Pay NY Tax
hal9000(jr) writes "The Boston Globe is running this
story on an out-of-state programmer working for a New York company who had to pay state taxes. '"New York has the right to tax 100% of a nonresident employee's income derived from New York sources," according to
the 4-3 decision by Court of Appeals. The court relied on a fairness rule called the "convenience of the employer" under law that says a worker's income is taxable if he chooses to live outside the state, as opposed to if he or
she was transferred there.' The dissenting opinion: 'Judge Robert Smith argued that the basis of the majority's decision that all income is taxable is "that the commissioner says it is ... The majority cites no authority at all, and offers no persuasive reason, in support of this new interpretation."'"
By the same logic, it's for my (and all my coworkers') convenience that the Delaware based media company I work for's main office is in NYC and therefore I should ask NYS for a refund for the past 4 years. This is a dangerous precedent. -Mike
Give me the right to vote, and I'll pay your damn taxes. Till then, up yours. I've got tea, you've got a harbor.
I also think this is going to get appealed to the Federal courts. I live in Texas and work for a company that has an office here, but is headquartered in Massachussettes. I can't imagine paying MA income taxes, but it sounds like this court ruling says that I should (assuming the MA courts rule the same way).
And the men who hold high places must be the ones who start
To mold a new reality... closer to the heart
The government rules they can tax yet more of our money.
Typically you pay a portion of taxes for the time you spent in each state. If you spend 50% of your time in each of two states, they usually have you pay 50% of your taxes in each. But that's if you are PHYSICALLY there.
This sounds as if you could end up paying full income tax in the state your company is in, plus full taxes in your own state - because your local state will consider you a full-time resident (since you do live there full time).
Not only that, but . . . how is New York offering him any representation for the taxes he pays there? He isn't a resident. He doesn't use their services. He doesn't commute. He doesn't have anything to do with anything there - other than it is where his employer is based.
For that matter, shouldn't companies overseas who contract with American companies to provide, say - tech support - have to pay American federal income taxes? I don't see how that would be any different from this scenerio whatsoever...
I'd sure hate to be stuck paying 56% in state income taxes, before even coming to my federal and county income taxes!
So, if you're a New York company that hires programmers, consider relocating (either in toto or a subsidiary) to Texas, where your dollar goes further, and you get to keep more of it.
We have BBQ, TexMex, and sane gun laws (i.e., the law-abiding can own one). What we lack: 3 months of snow, subways, and george Steinbrenner.
Up to you.
Lawrence Person (lawrencepersonh@gmailh.com (remove all "h"s to mail)
http://www.lawrenceperson.com/
He doesn't use NY roads, his kids don't use NY schools, he deosn't get to vote for NY legislators, senators or anything, he doesn't use NY public transport. Why should he pay NY tax?
PS: I am a NY resident myself.
No. The state in which he is a resident will allow him to deduct the amount of taxes paid to other states. I have worked in one state and lived in another before, and that was how it was done. I don't think too many people would work in a different state than their home was in if it meant double taxation.
I'd want them to start to have to pay for school, roads, parks, police, etc here in Arizona. That's what your lower-level (as in less than federal) taxes fund. In the case of state taxes it's all state highways, and roads on state lands, the state universities, DPS, and so on. In other words: things I and my community use.
New York helps pay for none of that, regardless of if I work for a company based there or not. Thus, I don't see any possible reason why they need the money. Arizona needs it because living here I use those services. I don't live in NY, they don't need it.
So ya, if they give me the right to vote in state elections, and start sending money back to my state to pay for things, I'll call this fair. Until then, I'm saying it's an issue for federal court.
Taxation Without Representation
It's really that simple. I am not sure why the courts cannot understand it. Any third grader in a history lesson can understand that.
Other than having a job in Anytown, USA:
I would think that any of the founding fathers would not stand any of this ridiculousness. It was a foundation of a revolution.
Of course, I may be a little facetious, but taxation is just out of control.
Whew! I feel a little better.
Coderz 4 Life