IB 

Union Calendar No. 121 

115TH CONGRESS 

1ST SESSION H. R. 1393 

[Report No. 115–180] 

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

employment duties performed in other States. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 7, 2017 

Mr. BISHOP of Michigan (for himself, Mr. JOHNSON of Georgia, Mr. SMITH

of Missouri, Mr. WALKER, Mr. DUNCAN of South Carolina, Mr. MESSER, 

Mr. HURD, Mr. RICE of South Carolina, Mr. CICILLINE, Mr. BUCSHON, 

Mr. CULBERSON, Mr. MCCAUL, Mrs. COMSTOCK, Mrs. WATSON COLEMAN, Mr. COOPER, Mr. DEUTCH, Mr. ROE of Tennessee, Mr. HASTINGS, 

Ms. JACKSON LEE, Mr. SWALWELL of California, Mr. THOMAS J. ROONEY of Florida, Mr. MARINO, Mrs. WALORSKI, and Mr. CRIST) introduced the following bill; which was referred to the Committee on the Judiciary 

JUNE 15, 2017 

Additional sponsors: Mr. GOODLATTE, Mr. FRELINGHUYSEN, Mr. HENSARLING, Mr. ISSA, Mr. SMITH of Texas, Mr. GROTHMAN, Mr. PASCRELL, Mr. LANCE, Mr. SCHNEIDER, Mr. WEBSTER of Florida, Mr. 

WITTMAN, Mr. ROKITA, Mr. CURBELO of Florida, Mr. MITCHELL, Mr. 

YARMUTH, Mr. PITTENGER, Mr. FERGUSON, Mr. BILIRAKIS, Mr. 

MOOLENAAR, Mr. RUPPERSBERGER, Mr. MICHAEL F. DOYLE of Pennsylvania, Mr. BROOKS of Alabama, Ms. JENKINS of Kansas, Mr. SESSIONS, 

Mr. GOHMERT, Mr. HECK, Mr. STEWART, Mr. HIMES, Mr. COHEN, Ms. 

SHEA-PORTER, Mr. CONAWAY, Mr. SHERMAN, Mr. BACON, and Ms. 

ROSEN

JUNE 15, 2017 

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 


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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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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 

5 State Income Tax Simplification Act of 2017’’. 

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

8 (a) IN GENERAL.—No part of the wages or other re9 muneration earned by an employee who performs employ10 ment duties in more than one State shall be subject to 

11 income 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 with22 holding and reporting requirements under subsection 

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

24 as of the commencement date of employment duties in the 

25 State during the calendar year. 


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1 (c) OPERATING RULES.—For purposes of deter2 mining penalties related to an employer’s State income tax 

3 withholding and reporting requirements— 

4 (1) an employer may rely on an employee’s an5 nual determination of the time expected to be spent 

6 by such employee in the States in which the em7 ployee will 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 reg15 ular course of business that record the location of an 

16 employee, such records shall not preclude an employ17 er’s ability to rely on an employee’s determination 

18 under 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 

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

23 and attendance system shall be used instead of the 

24 employee’s determination under paragraph (1). 


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1 (d) DEFINITIONS AND SPECIAL RULES.—For pur2 poses 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 em8 ployee’s employment duties within such State 

9 than 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 

14 the employee’s employment duties in the non15 resident State than in the resident State for 

16 such day. 

17 (C) For purposes of this paragraph, the 

18 portion of the day during which the employee is 

19 in transit shall not be considered in determining 

20 the location of an employee’s performance of 

21 employment duties. 

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

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

24 employment duties are performed, except that the 

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


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1 athlete, professional entertainer, qualified production 

2 employee, or certain public figures. 

3 (3) PROFESSIONAL ATHLETE.—The term ‘‘pro4 fessional athlete’’ means a person who performs 

5 services in a professional athletic event, provided 

6 that the wages or other remuneration are paid to 

7 such person for performing services in his or her ca8 pacity as a professional athlete. 

9 (4) PROFESSIONAL ENTERTAINER.—The term 

10 ‘‘professional entertainer’’ means a person of promi11 nence who performs services in the professional per12 forming arts for wages or other remuneration on a 

13 per-event basis, provided that the wages or other re14 muneration are paid to such person for performing 

15 services in his or her capacity as a professional en16 tertainer. 

17 (5) QUALIFIED PRODUCTION EMPLOYEE.—The 

18 term ‘‘qualified production employee’’ means a per19 son who performs production services of any nature 

20 directly in connection with a State qualified, cer21 tified or approved film, television or other commer22 cial video production for wages or other remunera23 tion, provided that the wages or other remuneration 

24 paid to such person are qualified production costs or 

25 expenditures under such State’s qualified, certified 


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1 or approved film incentive program, and that such 

2 wages or other remuneration must be subject to 

3 withholding under such film incentive program as a 

4 condition to treating such wages or other remunera5 tion as a qualified production cost or expenditure. 

6 (6) CERTAIN PUBLIC FIGURES.—The term 

7 ‘‘certain public figures’’ means persons of promi8 nence who perform services for wages or other remu9 neration on a per-event basis, provided that the 

10 wages or other remuneration are paid to such person 

11 for services provided at a discrete event, in the na12 ture of a speech, public appearance, or similar event. 

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

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

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

16 unless such term is defined by the State in which 

17 the employee’s employment duties are performed, in 

18 which case the State’s definition shall prevail. 

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

20 the several States. 

21 (9) TIME AND ATTENDANCE SYSTEM.—The 

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

23 in which— 

24 (A) the employee is required on a contem25 poraneous basis to record his work location for 


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1 every day worked outside of the State in which 

2 the employee’s employment duties are primarily 

3 performed; and 

4 (B) the system is designed to allow the em5 ployer to allocate the employee’s wages for in6 come tax purposes among all States in which 

7 the employee performs employment duties for 

8 such employer. 

9 (10) WAGES OR OTHER REMUNERATION.—The 

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

11 by the State in which the employment duties are 

12 performed. 

13 SEC. 3. EFFECTIVE DATE; APPLICABILITY. 

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

15 January 1 of the second calendar year that begins after 

16 the date of the enactment of this Act. 

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

18 tax obligation that accrues before the effective date of this 

19 Act. 


asabaliauskas on DSKBBXCHB2PROD with BILLS

asabaliauskas on DSKBBXCHB2PROD with BILLS
Union Calendar No. 121 

115TH CONGRESS 

1ST SESSION H. R. 1393 

[Report No. 115–180] 

A BILL 

To limit the authority of States to tax certain informed in other States. come of employees for employment duties perJUNE 15, 2017 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


asabaliauskas on DSKBBXCHB2PROD with BILLS