New Jersey state senator calls for federal help in tax fight with New York

(The Center Square) – A state senator is calling for New Jersey to step up its fight with New York over taxing remote workers, and he’s looking to Washington for help.

New York tax officials contend New Jersey residents must still pay income tax in the Empire State even if they worked remotely amid the COVID-19 pandemic. The Wall Street Journal previously reported that New York state tax officials were auditing New Jersey residents’ tax returns.

“For months, we have been waiting and calling upon the administration to, at least, change their instruction actually telling New York companies to withhold New York taxes from New Jersey residents who are working at their kitchen table rather than the lower NJ taxes, but they haven’t even done that,” state Sen. Steven Oroho, R-Sussex, said in a news release.

Oroho has long called on Gov. Phil Murphy to wade into the fight, and now he wants U.S. Sens. Corey Booker and Bob Menendez, both D-New Jersey, to join the fight. Murphy previously suggested the outcome of a similar case involving New Hampshire and Massachusetts might help resolve the issue, but the U.S. Supreme Court declined to take up the case.

“To his credit, Senator Oroho has been in front on this issue for well over a year,” Garden State Initiative (GSI) President Regina Egea told The Center Square. “Considering the tremendous property and income tax burden that New Jersey residents bear, it’s unfathomable that we’re also subsidizing New York’s budget in this way.

“This is a rare win-win for New Jersey taxpayers,” Egea added. “Working families would have the most to benefit with thousands of dollars in additional take-home pay, while state government would have additional resources to put towards items like true property tax relief.”

Both Murphy and the state’s congressional delegation have called for the federal government to restore the SALT deduction. Representatives for Booker and Menendez did not immediately respond to requests for comment.

“The Governor and our Congressional delegation have been loudly calling for restoration of the SALT deduction, which overwhelmingly benefits the wealthy, and similarly, vocally criticizing New York’s attempt to implement congestion pricing on New Jerseyans driving into the city,” Egea said. “Here we have an issue where 400,000 New Jerseyans can benefit by paying a lower tax rate to New Jersey, yet most of our leaders in Trenton and D.C. are reluctant to bring Gov. [Andrew] Cuomo to the table or put forth a legislative solution.”

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