Mass. Can’t Tax Out-Of-State Worker Premiums, Court Says

Law360 (April 13, 2018, 8:26 PM EDT) -- The state of Massachusetts cannot collect taxes on health care premiums paid by companies' out-of-state employees, the state's high court ruled Friday, rejecting the Commissioner of Revenue’s long-standing practice.

The Supreme Judicial Court ruled in favor of Dental Service of Massachusetts, which set out in 2011 to obtain a $3.75 million refund of state taxes it had paid on out-of-state premiums. The high court affirmed the Appellate Tax Board’s interpretation that insurers operating preferred provider arrangements must pay taxes only on payments they receive from workers...
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