Two More States Take Action to Protect Mobile Workers and Their Employers from Onerous Nonresident Tax

As many 2023 state legislative sessions come to a close, two states stand out for their successful efforts to reduce the tax administrative burden on mobile workers and their employers. Both Indiana and Montana enacted legislation that create 30-day safe harbor thresholds for personal income tax withholding for nonresident workers. Indiana’s mobile workforce provisions were part of a larger bipartisan tax package, SB 419, that was signed by Governor Eric Holcomb (R) on May 4, 2023. Montana’s standalone legislation, HB 447, was introduced by Representative Mark Thane (D) and signed by Governor Greg Gianforte (R) on May 18th.

Both laws are effective January 1, 2024. Indiana and Montana are the fifth and sixth states to implement safe harbor thresholds for nonresident workers of 30 days or more. Combined with the states without a personal income tax, there are now 15 states where mobile workers can travel free of fear of excessively burdensome taxation.

The Mobile Workforce Coalition is grateful to the sponsors and co-sponsors of both bills for their work to protect mobile workers and the businesses that employ them. Read our thank you letters to the Indiana and Montana legislators here and here, respectively.