II 

114TH CONGRESS 

2D SESSION H. R. 2315 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 22, 2016 

Received 

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 2015’’. 

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, or certain public 

24 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 who per9 forms services in the professional performing arts 

10 for wages or other remuneration on a per-event 

11 basis, provided that the wages or other remuneration 

12 are paid to such person for performing services in 

13 his or her capacity as a professional entertainer. 

14 (5) CERTAIN PUBLIC FIGURES.—The term 

15 ‘‘certain public figures’’ means persons of promi16 nence who perform services for wages or other remu17 neration on a per-event basis, provided that the 

18 wages or other remuneration are paid to such person 

19 for services provided at a discrete event, in the na20 ture of a speech, public appearance, or similar event. 

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

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

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

24 unless such term is defined by the State in which 


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1 the 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 

4 the several States. 

5 (8) TIME AND ATTENDANCE SYSTEM.—The 

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

7 in 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 performed; and 

13 (B) the system is designed to allow the em14 ployer to allocate the employee’s wages for in15 come tax purposes among all States in which 

16 the employee performs employment duties for 

17 such employer. 

18 (9) WAGES OR OTHER REMUNERATION.—The 

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

20 by the State in which the employment duties are 

21 performed. 

22 SEC. 3. EFFECTIVE DATE; APPLICABILITY. 

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

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

25 the 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. 

Passed the House of Representatives September 21, 

2016. 

Attest: KAREN L. HAAS, 

Clerk. 


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