N.J.’s Murphy Seeks to Tax Employees Who Live Outside State

People who work at their out-of-state homes for New Jersey-based companies would face payroll taxes under bipartisan legislation introduced by Governor Phil Murphy.

“We must protect our residents from unfair and inordinate taxation from other states,” Murphy said in a statement on Thursday. “The proposals I’m announcing today, while supporting our hard-working residents in their efforts to dispute such taxation, will help promote employment in New Jersey and counteract lost tax revenue to our neighbors.”

The law, spurred by remote work arrangements that have lasted years beyond the pandemic’s worst days, would mirror a New York policy that costs ...