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SB 790

AN ACT CONCERNING THE TAXATION OF RESIDENTS BY OTHER STATES ON INCOME DERIVED FROM SERVICES RENDERED WITHIN THIS STATE.

2025 Regular Session Introduced by Ryan Fazio

SB 790 shields Connecticut residents from taxation by other states on income earned for services performed within Connecticut.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#incometaxcredits(state) #revenueservices #departmentof
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WeVote Research Nonpartisan
Bill Summary · SB 790

Legislative bill overview

SB 790 addresses Connecticut residents' tax obligations to other states when they perform work within Connecticut's borders. The bill aims to protect Connecticut residents from being taxed by other states on income earned for services performed in Connecticut, establishing clearer tax nexus rules.

Why is this important

Remote work and multi-state employment have created situations where workers can face conflicting tax claims from multiple states. This bill directly affects Connecticut residents who work for out-of-state employers or travel to neighboring states for work, potentially saving them from double taxation and reducing tax compliance burdens.

Potential points of contention

  • Interstate commerce complications: Other states may argue they have legitimate taxing rights over non-residents who benefit from their infrastructure while working remotely for their employers
  • Revenue impact on neighboring states: States like New York and Massachusetts might view this as an encroachment on their tax base, particularly affecting their businesses that employ Connecticut residents
  • Enforcement and verification challenges: Determining where services are "rendered" can be complex, especially with hybrid work arrangements, potentially creating compliance and audit difficulties
  • Reciprocal obligations: Unclear whether Connecticut will implement similar protections for non-residents working in the state, raising fairness concerns

Compiled from official sources — confirm details with the bill’s official record.

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