I think your example makes sense. I lived and still live in MA. I never lived in MD and did not and do not plan to relocate there. And seems, it would not be practical for my employer to relocate me there either. So this seems as necessity.
And, maybe if MD will have issues with issuing a refund of all MD taxes I paid, then I could justify it by their own announcement which states " taxability is determined by the employee’s physical presence" ?
