Bill to help employees working in multiple states

WASHINGTON, D.C. (KOLO) - On Thursday, U.S. Sens. Catherine Cortez Masto (D-Nev.) and John Thune (R-S.D.) introduced the Mobile Workforce State Income Tax Simplification Act, which would standardize state income tax collection when people travel out-of-state for temporary work.

“Mobile workers who temporarily work outside of their home state should not find a surprise tax bill come April,” Cortez Masto said. “I’m proud to introduce this common-sense bill alongside Senator Thune to cut red tape and protect workers across the United States.”

This legislation would establish a 30-day threshold to help ensure that an equitable tax is paid to the state and local jurisdiction where the work is being performed. At the same time, it would alleviate tax requirements for employees and employers.

“It is complicated and unfair for an individual who lives in a state like South Dakota, with no state income tax, to have to file income taxes in multiple states for simply temporarily working in those states,” Thune said. “In some cases, for as little as 24 hours and not be able to recover any income tax payments he or she has to make.”

Nevada and South Dakota have no income tax, which limits the ability for residents to offset taxes paid in other states. This legislation would ensure that Nevada workers who travel outside of the state for work aren’t unfairly punished.