The Coalition to Protect Interstate Commerce:
advocates enactment of a federal law clarifying that state taxation of business income requires a physical presence within the taxing state. This advocacy effort is in response to increasingly aggressive state efforts to expand their tax base by assessing income and franchise taxes against out-of-state companies that have customers, but no property or employees in their jurisdiction.
House Judiciary passes Business Activity Tax Simplification Act
On Thursday, July 7, 2011, the House Judiciary Committee passed the Business Activity Tax Simplification Act, H.R. 1439, which was introduced by Congressman Bob Goodlatte (R-VA) and Bobby Scott (D-VA). The legislation clarifies the confusion surrounding when a state can levy business activity taxes on out-of-state businesses. The legislation will be referred to the full House for further consideration.