KBRA Releases Report – COVID-19: Conflict Heats Up Between States Over Income Taxes

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases research which details how the pandemic has created additional spheres of conflict between states, with some issues likely to prove long lasting.

To comply with public health measures related to COVID-19, the nature of many economic activities changed dramatically, which in turn has affected how various taxes are collected. The surge of individuals working from home has influenced how certain states are imposing income taxes on nonresidents. This change is especially noteworthy in those states with major economic centers, like New York and Massachusetts, leading to disagreements with potential revenue implications. The conflict raises constitutional issues that may require judicial resolution.

Click here to view the report.

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.