Gene Marks on remote tax accounting in another state.

The Supreme Court on Monday declined to hear a New Hampshire state case against Massachusetts regarding the tax treatment of teleworkers’ income during the pandemic.

It was not clear why the judges rejected the case, but Judges Clarence Thomas and Samuel Alito had, according to the files, granted the motions.

As previously reported by FOX Business, New Hampshire filed a lawsuit against Massachusetts in October for a so-called “unconstitutional tax seizure.”

It’s about a Massachusetts-imposed measure within a pandemic that essentially maintains the income tax status quo – that is, if a New Hampshire resident was in a Massachusetts office without the virus outbreak, that person would withhold taxes as if she or she were earned her income in the state.

The case could have had far-reaching implications for other states that have similar, permanent tax policies.

NO-TAX NEW HAMPSHIRE LAUNCHES LEGAL FIGHT AGAINST MASSACHUSETTS ‘DISTANCE LABOR “TAX GRAB”

Unlike Massachusetts, New Hampshire has no income tax on wages, which official figures say will boost the economy by attracting businesses and residents, creating jobs, and generating higher per capita income.

Those economic benefits, the lawsuit argued, were jeopardized by Massachusetts’ decision to impose an “within New Hampshire” income tax.

Massachusetts, which taxed earned income at 5.05%, issued the guidelines in April, but the guideline was retroactive to March. The policy was due to expire 90 days after the state of emergency was lifted in Massachusetts on June 15.

More than 100,000 New Hampshire residents are said to be affected by the policy.

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A spokesman for the Massachusetts Executive Office for Administration and Finance did not respond to FOX Business’ request for comment.

“By taking the side of the Biden government and allowing inappropriate taxation of NH citizens, the Supreme Court is setting a costly precedent,” New Hampshire governor Chris Sununu said in a statement Monday. “This decision will have profound consequences for thousands of Granite State residents.”

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Some workers have faced tax headaches depending on how their work situation has changed during the pandemic.

There is a complex patchwork of state income tax laws, some of which were temporarily amended during the national emergency.