June 22,2009
Chairman John Conyers, Jr.
Chairman Stephen Cohen
House Judiciary Committee and
Subcommittee on Commercial and Administrative Law
United States House of Representatives
Washington, DC 20515
Re: H.R. 1083, Business Activity Tax Simplification Act of 2009
Dear Chairmen Convers & Cohen:
The below-listed businesses, trade associations and taxpayer groups strongly support H.R. 1083, the Business Activity Tax Simplification Act of 2009 ("BATSA"), and respectfully ask that the Committee consider the legislation and report it to the full House as soon as possible.
BATSA, recently introduced by Representatives Rick Boucher (D-VA) and Bob Goodlatte (R-VA), with strong bipartisan support among members of the Judiciary Commiuee, would clarify the constitutional requirement for a physical presence nexus standard governing state assessment of corporate income taxes and comparable taxes on a business. Specifically, the bill would articulate a bright-line physical presence nexus standard that includes owning or leasing any real or tangible property, or assigning one or more employees to perform certain activities in the state for more than fifteen days in a taxable year. In addition, the bill would modernize P.L. 86-272 -which prohibits states from assessing net income taxes against a business if its only contact with the state involves the solicitation of orders for tangible personal property -so that it applies also to intangible property and services and so that it covers taxes that have replaced net income taxes.
BATSA would ensure fairness, minimize costly litigation for both state govemments and taxpayers and create the kind of legally certain and stable business environment that encourages business to make investments, expand interstate commerce and create new jobs. At the same time, the bill would ensure that businesses continue to pay business activity taxes to states that provide them with direct benefits and protections.
Thank you in advance for considering our request. We look forward to working with you, your staff and all members of the House Judiciary Committee on the Business Activity Tax Simplification Act.
Sincerely,
Abercrombie & Fitch Co.
Agilent Technologies, Inc.
Alcoa
American Bankers Association
American Express Company
American Home Furnishings Alliance
American Homeowners Grassroots Alliance
American Legislative Exchange Council
American Moving & Storage Association
American Trucking Associations
Apple Inc.
Association for Competitive Technology
Automotive Aftermarket Industrv Association
Bank of America
Bay Beyond, Inc.
Bayer Corporation
Beall's Inc.
Big Lots Stores, Inc.
Birmingham Regional Chamber of Commerce
BMC Software
Burger King Corporation
Business and Institutional Furniture Manufacturers Association (BIFMA) International
Business Council of Alabama
Business Roundtable
CA, Inc.
California B ankers Association
California Taxpayers Association
Camping World
Capital One
CBS Corporation
Citigroup
Coalition of Service Industries
Computing Technology Industry Association
Connecticut Technology Council
Consumer Electronics Association
Council On State Taxation
The Cristol Group, Inc.
CSIA, the Colorado Technology Association
Dave's Gourmet, Inc.
Deere & Company
Delphi Corporation
Dick's Sporting Goods
Discovery Communications, lnc.
East Shore Specialty Foods
Eastman Chemical Company
EBSCO Industries, Inc.
E*TRADE Financial Corporation
Fairfax County Chamber of Commerce
Filemaker, Inc.
Financial Executives International's Committee on Taxation
Financial Services Roundtable
Firehouse Restaurant Group
Fischer & Wieser Specialty Foods, Inc.
Foodservice Equipment Distributors Association
Gap Inc.
GE Capital Corp.
General Electric Co.
Gil's Gourmet Gallery Inc.
Greater Richmond Chamber of Commerce
Hatco Corporation
The Hearst Corporation
Hope Trucking, Inc.
HSBC-North America
i2 Technologies, Inc.
Illinois Chamber of Commerce
Illinois Technology Association (ITA)
International Business Machines Corporation
International F oodservice Di stributors Association
International Franchise Association
Investment Company Institute
Johnson & Johnson
JPMorgan Chase & Co.
Keowee Systems, Inc.
Lake Champlain Chocolates
Limited Brands
Louisiana Technology Council
LTL Service of Wisconsin, Inc.
Macy's, Inc.
Magazine Publishers of America
Marich Confectionary Co.
Mary Kay Inc.
Maryland Chamber of Commerce
Massachusetts Marine Trades Association
Media Financial Management
Meredith Corporation
Microsoft Corporation
Mistco Inc.
Montana Chamber of Commerce
Montana Taxpayers Association
Morgan Stanley
Mortgage Bankers Association
Motion Picture Association of America
National Association of Broadcasters
National Association of Manufacturers
National Foreign Trade Council
National Gypsum Company
National Marine Manufacturers Association
National Restaurant Association
National Retail Federation
National Taxpayers Union
NBC Universal
Nestle Holdings, Inc.
NetChoice
Neutral Posfure, Inc.
New Jersey Bankers Association
New Jersey Technology Council
News Corporation
New York Bankers Association
North American Association of Food Equipment Manufacturers
Organization for International Investment
Owner-Operator Independent Drivers Association
Partnership for New York City
Pasta By Valente, Inc.
Pelican Bay Ltd.
PostNet International Franchise Corporation
PPG Industries, Inc.
sanofi-aventis US
Sara Lee Corporation
Seaworthy Publications, Inc.
Securities Industry and Financial Markets Association
Software & Information Industry Association
Software Finance and Tax Executives Council
Sony
Source Atlantique, Inc.
Stonewall Kitchen LLC
Sweeny Family Farms
Symantec Corporation
TechAmerica
Time Warner Inc.
The TIX Companies, Inc.
UPS
US Banco
U.S. Chamber of Commerce
Vermeer Corporation
Viacom, Inc.
Virginia Bankers Association
The Walt Disney Company
Washington Technology Industry Association
Wells Fargo
Wendy's/Arby's Group, Inc.
Women Impacting Public Policy
cc: Members, House Judiciary Committee
