IB 

Union Calendar No. 264 

112TH CONGRESS 

2D SESSION H. R. 1864 

[Report No. 112–386] 

To limit the authority of States to tax certain income of employees for 

employment duties performed in other States. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 12, 2011 

Mr. COBLE (for himself and Mr. JOHNSON of Georgia) introduced the 

following bill; which was referred to the Committee on the Judiciary 

FEBRUARY 3, 2012 

Additional sponsors: Mr. FRANKS of Arizona, Mr. ROSS of Florida, Mr. 

GOWDY, Mr. CHAFFETZ, Mr. SESSIONS, Mr. BOREN, Mr. CRENSHAW, 

Mr. ROONEY, Mr. JORDAN, Mr. QUAYLE, Mr. FORBES, and Ms. JACKSON

LEE of Texas 

FEBRUARY 3, 2012 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of the introduced bill, see bill as introduced on May 12, 2011] 


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•HR 1864 RH

A BILL 

To limit the authority of States to tax certain income of 

employees for employment duties performed in other States. 


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•HR 1864 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Mobile Workforce State 

5 Income Tax Simplification Act of 2011’’. 

6 SEC. 2. LIMITATIONS ON STATE WITHHOLDING AND TAX7 ATION OF EMPLOYEE INCOME. 

8 (a) IN GENERAL.—No part of the wages or other remu9 neration earned by an employee who performs employment 

10 duties in more than one State shall be subject to income 

11 tax in any State other than— 

12 (1) the State of the employee’s residence; and 

13 (2) the State within which the employee is 

14 present and performing employment duties for more 

15 than 30 days during the calendar year in which the 

16 wages or other remuneration is earned. 

17 (b) WAGES OR OTHER REMUNERATION.—Wages or 

18 other remuneration earned in any calendar year shall not 

19 be subject to State income tax withholding and reporting 

20 requirements unless the employee is subject to income tax 

21 in such State under subsection (a). Income tax withholding 

22 and reporting requirements under subsection (a)(2) shall 

23 apply to wages or other remuneration earned as of the com24 mencement date of employment duties in the State during 

25 the calendar year. 


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1 (c) OPERATING RULES.—For purposes of determining 

2 an employer’s State income tax withholding and reporting 

3 requirements— 

4 (1) an employer may rely on an employee’s de5 termination of the time expected to be spent by such 

6 employee in the States in which the employee will 

7 perform duties absent— 

8 (A) the employer’s actual knowledge of 

9 fraud by the employee in making the determina10 tion; or 

11 (B) collusion between the employer and the 

12 employee to evade tax; 

13 (2) except as provided in paragraph (3), if 

14 records are maintained by an employer in the regular 

15 course of business that record the location of an em16 ployee, such records shall not preclude an employer’s 

17 ability to rely on an employee’s determination under 

18 paragraph (1); and 

19 (3) notwithstanding paragraph (2), if an em20 ployer, at its sole discretion, maintains a time and 

21 attendance system that tracks where the employee per22 forms duties on a daily basis, data from the time and 

23 attendance system shall be used instead of the employ24 ee’s determination under paragraph (1). 


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1 (d) DEFINITIONS AND SPECIAL RULES.—For purposes 

2 of this Act: 

3 (1) DAY.— 

4 (A) Except as provided in subparagraph 

5 (B), an employee is considered present and per6 forming employment duties within a State for a 

7 day if the employee performs more of the employ8 ee’s employment duties within such State than 

9 in any other State during a day. 

10 (B) If an employee performs employment 

11 duties in a resident State and in only one non12 resident State during one day, such employee 

13 shall be considered to have performed more of the 

14 employee’s employment duties in the nonresident 

15 State than in the resident State for such day. 

16 (C) For purposes of this paragraph, the 

17 portion of the day during which the employee is 

18 in transit shall not be considered in determining 

19 the location of an employee’s performance of em20 ployment duties. 

21 (2) EMPLOYEE.—The term ‘‘employee’’ has the 

22 same meaning given to it by the State in which the 

23 employment duties are performed, except that the 

24 term ‘‘employee’’ shall not include a professional ath25 lete, professional entertainer, or certain public figures. 


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1 (3) PROFESSIONAL ATHLETE.—The term ‘‘profes2 sional athlete’’ means a person who performs services 

3 in a professional athletic event, provided that the 

4 wages or other remuneration are paid to such person 

5 for performing services in his or her capacity as a 

6 professional athlete. 

7 (4) PROFESSIONAL ENTERTAINER.—The term 

8 ‘‘professional entertainer’’ means a person who per9 forms services in the professional performing arts for 

10 wages or other remuneration on a per-event basis, 

11 provided that the wages or other remuneration are 

12 paid to such person for performing services in his or 

13 her capacity as a professional entertainer. 

14 (5) CERTAIN PUBLIC FIGURES.—The term ‘‘cer15 tain public figures’’ means persons of prominence who 

16 perform services for wages or other remuneration on 

17 a per-event basis, provided that the wages or other re18 muneration are paid to such person for services pro19 vided at a discrete event, in the nature of a speech, 

20 public appearance, or similar event. 

21 (6) EMPLOYER.—The term ‘‘employer’’ has the 

22 meaning given such term in section 3401(d) of the In23 ternal Revenue Code of 1986 (26 U.S.C. 3401(d)), un24 less such term is defined by the State in which the 


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1 employee’s employment duties are performed, in 

2 which case the State’s definition shall prevail. 

3 (7) STATE.—The term ‘‘State’’ means any of the 

4 several States. 

5 (8) TIME AND ATTENDANCE SYSTEM.—The term 

6 ‘‘time and attendance system’’ means a system in 

7 which— 

8 (A) the employee is required on a contem9 poraneous basis to record his work location for 

10 every day worked outside of the State in which 

11 the employee’s employment duties are primarily 

12 preformed; and 

13 (B) the employer uses this data to allocate 

14 the employee’s wages for income tax purposes 

15 among all States in which the employee performs 

16 employment duties for such employer. 

17 (9) WAGES OR OTHER REMUNERATION.—The 

18 term ‘‘wages or other remuneration’’ may be limited 

19 by the State in which the employment duties are per20 formed. 

21 SEC. 3. EFFECTIVE DATE; APPLICABILITY. 

22 (a) EFFECTIVE DATE.—This Act shall take effect on 

23 January 1 of the 2d year that begins after the date of the 

24 enactment of this Act. 


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1 (b) APPLICABILITY.—This Act shall not apply to any 

2 tax obligation that accrues before the effective date of this 

3 Act. 


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srobinson on DSK4SPTVN1PROD with BILLS
Union Calendar No. 264 

112TH CONGRESS 

2D SESSION H. R. 1864 

[Report No. 112–386] 

A BILL 

To limit the authority of States to tax certain informed in other States. come of employees for employment duties perFEBRUARY 3, 2012 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


srobinson on DSK4SPTVN1PROD with BILLS