4 ms·

NYC already has arrangements for this. Since a lot of people live in NJ and CT, they have city taxes that apply to people working there and living in other stat

NYC already has arrangements for this. Since a lot of people live in NJ and CT, they have city taxes that apply to people working there and living in other states. I believe most states with high tech industry will do just that. It is not a difficult problem to solve like some people imagine.

koolba 6y ago
The city taxes are based upon the number of days you spend in NYC above a minimum (14-days). If you work from home from a different city / state, you won't pay city tax if you never travel to NYC.
- coliveira 6y ago
  This is just a detail. The city creates the tax so they can change it any way they want.
  - koolba 6y ago
    > This is just a detail. The city creates the tax so they can change it any way they want. The majority of large companies are Delaware C-corps and they pay the State-specific taxes for each employee's home state and the employee's primary office location. There's no way that NYC could tax all of a company's worldwide employees who never set foot in NYC just because it has an office in NYC. Attempting or merely suggesting it would have massive consequences. If they're going to go full cash-grab, they might as well figure out the property values that align with billionaires and structure property taxes that specifically target them. For example Bezos has a couple apartments in NYC[1] bought for about $80M. They could put a one-time %100000 property tax and demand he pay them $80B. [1]: https://www.businessinsider.com/jeff-bezos-apartments-new-york-city-photos-2019-4 https://www.businessinsider.com/jeff-bezos-apartments-new-yo...
- nieksand 6y ago
  You'll still have to pay NY state taxes if you're a telecommuter, even if you do not set foot in the state.
  - rubans 6y ago
    If all the employees of a company based in NY work remotely, wouldn't the company just relocate somewhere else to make it cheaper for all the remote employees since there's no longer a need to have a HQ there?
    - coliveira 6y ago
      This is a big IF. Nobody is saying that HQs will stop existing, only that they will have more remote workers.
- wastedhours 6y ago
  It depends - even for WFH or agile working here in the UK, usually you have a "home base" in your contract where legally they can force you to work from should push come to shove. I'd imagine there's something similar in the US which gives them a reasonable argument to still tax those who should be in the city? I guess a few companies will open up satellite offices in places amenable to remote works in that instance.
tomnj 6y ago
This is not correct. Non NYC residents with NYS source income do not pay NYC (resident) tax, But they do pay NYS tax. See https://www1.nyc.gov/site/finance/taxes/personal-income-tax-and-non-resident-employees.page https://www1.nyc.gov/site/finance/taxes/personal-income-tax-...
programmertote 6y ago
I live in NJ and work in NYC. I don't need to pay the city tax. I only have to pay the state tax. Your understanding of this is inaccurate.

koolba 6y ago

The city taxes are based upon the number of days you spend in NYC above a minimum (14-days). If you work from home from a different city / state, you won't pay city tax if you never travel to NYC.

coliveira 6y ago
This is just a detail. The city creates the tax so they can change it any way they want.
- koolba 6y ago
  > This is just a detail. The city creates the tax so they can change it any way they want. The majority of large companies are Delaware C-corps and they pay the State-specific taxes for each employee's home state and the employee's primary office location. There's no way that NYC could tax all of a company's worldwide employees who never set foot in NYC just because it has an office in NYC. Attempting or merely suggesting it would have massive consequences. If they're going to go full cash-grab, they might as well figure out the property values that align with billionaires and structure property taxes that specifically target them. For example Bezos has a couple apartments in NYC[1] bought for about $80M. They could put a one-time %100000 property tax and demand he pay them $80B. [1]: https://www.businessinsider.com/jeff-bezos-apartments-new-york-city-photos-2019-4 https://www.businessinsider.com/jeff-bezos-apartments-new-yo...
nieksand 6y ago
You'll still have to pay NY state taxes if you're a telecommuter, even if you do not set foot in the state.
- rubans 6y ago
  If all the employees of a company based in NY work remotely, wouldn't the company just relocate somewhere else to make it cheaper for all the remote employees since there's no longer a need to have a HQ there?
  - coliveira 6y ago
    This is a big IF. Nobody is saying that HQs will stop existing, only that they will have more remote workers.
wastedhours 6y ago
It depends - even for WFH or agile working here in the UK, usually you have a "home base" in your contract where legally they can force you to work from should push come to shove. I'd imagine there's something similar in the US which gives them a reasonable argument to still tax those who should be in the city? I guess a few companies will open up satellite offices in places amenable to remote works in that instance.

tomnj 6y ago

This is not correct. Non NYC residents with NYS source income do not pay NYC (resident) tax, But they do pay NYS tax. See https://www1.nyc.gov/site/finance/taxes/personal-income-tax-and-non-resident-employees.page https://www1.nyc.gov/site/finance/taxes/personal-income-tax-...

programmertote 6y ago

I live in NJ and work in NYC. I don't need to pay the city tax. I only have to pay the state tax. Your understanding of this is inaccurate.