IIB 

115TH CONGRESS 

1ST SESSION H. R. 1393 

IN THE SENATE OF THE UNITED STATES 

JUNE 21, 2017 

Received; read twice and referred to the Committee on Finance 

AN ACT 

To limit the authority of States to tax certain income of 

employees for employment duties performed in other States. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Mobile Workforce 

3 State Income Tax Simplification Act of 2017’’. 

4 SEC. 2. LIMITATIONS ON STATE WITHHOLDING AND TAX5 ATION OF EMPLOYEE INCOME. 

6 (a) IN GENERAL.—No part of the wages or other re7 muneration earned by an employee who performs employ8 ment duties in more than one State shall be subject to 

9 income tax in any State other than— 

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

11 (2) the State within which the employee is 

12 present and performing employment duties for more 

13 than 30 days during the calendar year in which the 

14 wages or other remuneration is earned. 

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

16 other remuneration earned in any calendar year shall not 

17 be subject to State income tax withholding and reporting 

18 requirements unless the employee is subject to income tax 

19 in such State under subsection (a). Income tax with20 holding and reporting requirements under subsection 

21 (a)(2) shall apply to wages or other remuneration earned 

22 as of the commencement date of employment duties in the 

23 State during the calendar year. 

24 (c) OPERATING RULES.—For purposes of deter25 mining penalties related to an employer’s State income tax 

26 withholding and reporting requirements— 


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1 (1) an employer may rely on an employee’s an2 nual determination of the time expected to be spent 

3 by such employee in the States in which the em4 ployee will perform duties absent— 

5 (A) the employer’s actual knowledge of 

6 fraud by the employee in making the determina7 tion; or 

8 (B) collusion between the employer and the 

9 employee to evade tax; 

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

11 records are maintained by an employer in the reg12 ular course of business that record the location of an 

13 employee, such records shall not preclude an employ14 er’s ability to rely on an employee’s determination 

15 under paragraph (1); and 

16 (3) notwithstanding paragraph (2), if an em17 ployer, at its sole discretion, maintains a time and 

18 attendance system that tracks where the employee 

19 performs duties on a daily basis, data from the time 

20 and attendance system shall be used instead of the 

21 employee’s determination under paragraph (1). 

22 (d) DEFINITIONS AND SPECIAL RULES.—For pur23 poses of this Act: 

24 (1) DAY.— 


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1 (A) Except as provided in subparagraph 

2 (B), an employee is considered present and per3 forming employment duties within a State for a 

4 day if the employee performs more of the em5 ployee’s employment duties within such State 

6 than in any other State during a day. 

7 (B) If an employee performs employment 

8 duties in a resident State and in only one non9 resident State during one day, such employee 

10 shall be considered to have performed more of 

11 the employee’s employment duties in the non12 resident State than in the resident State for 

13 such day. 

14 (C) For purposes of this paragraph, the 

15 portion of the day during which the employee is 

16 in transit shall not be considered in determining 

17 the location of an employee’s performance of 

18 employment duties. 

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

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

21 employment duties are performed, except that the 

22 term ‘‘employee’’ shall not include a professional 

23 athlete, professional entertainer, qualified production 

24 employee, or certain public figures. 


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1 (3) PROFESSIONAL ATHLETE.—The term ‘‘pro2 fessional athlete’’ means a person who performs 

3 services in a professional athletic event, provided 

4 that the wages or other remuneration are paid to 

5 such person for performing services in his or her ca6 pacity as a professional athlete. 

7 (4) PROFESSIONAL ENTERTAINER.—The term 

8 ‘‘professional entertainer’’ means a person of promi9 nence who performs services in the professional per10 forming arts for wages or other remuneration on a 

11 per-event basis, provided that the wages or other re12 muneration are paid to such person for performing 

13 services in his or her capacity as a professional en14 tertainer. 

15 (5) QUALIFIED PRODUCTION EMPLOYEE.—The 

16 term ‘‘qualified production employee’’ means a per17 son who performs production services of any nature 

18 directly in connection with a State qualified, cer19 tified or approved film, television or other commer20 cial video production for wages or other remunera21 tion, provided that the wages or other remuneration 

22 paid to such person are qualified production costs or 

23 expenditures under such State’s qualified, certified 

24 or approved film incentive program, and that such 

25 wages or other remuneration must be subject to 


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1 withholding under such film incentive program as a 

2 condition to treating such wages or other remunera3 tion as a qualified production cost or expenditure. 

4 (6) CERTAIN PUBLIC FIGURES.—The term 

5 ‘‘certain public figures’’ means persons of promi6 nence who perform services for wages or other remu7 neration on a per-event basis, provided that the 

8 wages or other remuneration are paid to such person 

9 for services provided at a discrete event, in the na10 ture of a speech, public appearance, or similar event. 

11 (7) EMPLOYER.—The term ‘‘employer’’ has the 

12 meaning given such term in section 3401(d) of the 

13 Internal Revenue Code of 1986 (26 U.S.C. 3401(d)), 

14 unless such term is defined by the State in which 

15 the employee’s employment duties are performed, in 

16 which case the State’s definition shall prevail. 

17 (8) STATE.—The term ‘‘State’’ means any of 

18 the several States. 

19 (9) TIME AND ATTENDANCE SYSTEM.—The 

20 term ‘‘time and attendance system’’ means a system 

21 in which— 

22 (A) the employee is required on a contem23 poraneous basis to record his work location for 

24 every day worked outside of the State in which 


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1 the employee’s employment duties are primarily 

2 performed; and 

3 (B) the system is designed to allow the em4 ployer to allocate the employee’s wages for in5 come tax purposes among all States in which 

6 the employee performs employment duties for 

7 such employer. 

8 (10) WAGES OR OTHER REMUNERATION.—The 

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

10 by the State in which the employment duties are 

11 performed. 

12 SEC. 3. EFFECTIVE DATE; APPLICABILITY. 

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

14 January 1 of the second calendar year that begins after 

15 the date of the enactment of this Act. 

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

17 tax obligation that accrues before the effective date of this 

18 Act. 

Passed the House of Representatives June 20, 2017. 

Attest: KAREN L. HAAS, 

Clerk. 


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