I 
109TH CONGRESS 
2D SESSION 
H. R. 6167 
To limit the authority of States and localities to tax certain income of 
employees for employment duties performed in other States and localities. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 25, 2006 
Mr. CANNON introduced the following bill; which was referred to the 
Committee on the Judiciary 
A BILL 
To limit the authority of States and localities to tax certain 
income of employees for employment duties performed 
in other States and localities. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Mobile Workforce 
State Income Tax Fairness and Simplification Act of 
2006’’. 
VerDate Aug 31 2005 
23:04 Sep 27, 2006
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6167.IH
H6167
pwalker on PRODPC60 with BILLS
SEC. 2. LIMITATIONS ON STATE AND LOCALITY WITH-
HOLDING AND TAXATION OF EMPLOYEE IN-
COME. 
(a) IN GENERAL.—No part of the wages or other re-
muneration paid to an employee who performs duties in 
more than one State or locality shall be subject to the in-
come tax laws of any State or locality other than— 
(1) the State or locality of the employee’s resi-
dence; and 
(2) the State or locality in which the employee 
is physically present performing duties for more 
than 60 days during the calendar year in which the 
income is taxed. 
(b) WAGES OR OTHER REMUNERATION.—Wages or 
other remuneration paid in any calendar year are not sub-
ject to State or locality income tax withholding and report-
ing unless the employee is subject to income tax under 
subsection (a). Income tax withholding and reporting 
under subsection (a)(2) shall apply to wages or other re-
muneration paid as of the commencement date of duties 
in the State or locality during the calendar year. 
(c) OPERATING RULES.—For purposes of deter-
mining an employer’s State income tax withholding and 
information return obligations— 
(1) an employer may rely on an employee’s de-
termination of the time expected to be spent by such 
VerDate Aug 31 2005 
23:04 Sep 27, 2006
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6167.IH
H6167
pwalker on PRODPC60 with BILLS
employee in the States or localities in which the em-
ployee will perform duties absent— 
(A) actual knowledge of fraud by the em-
ployee in making the estimate; or 
(B) collusion between the employer and the 
employee to evade tax; and 
(2) if records are maintained by an employer 
recording the location of an employee for other busi-
ness purposes, such records shall not preclude an 
employer’s ability to rely on an employee’s deter-
mination as set forth in paragraph (1). 
(d) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this Act: 
(1) DAY.—An employee will be considered phys-
ically present and performing duties in a State or lo-
cality for a day if the employee performs more than 
50 percent of the employee’s employment duties in 
such State or locality for such day. 
(2) EMPLOYEE.—The term ‘‘employee’’ shall be 
defined by the State or locality in which the duties 
are performed, except that the term ‘‘employee’’ 
shall not include a professional athlete or enter-
tainer. 
(3) EMPLOYER.—The term ‘‘employer’’ has the 
meaning given such term in section 3401(d) of the 
VerDate Aug 31 2005 
23:04 Sep 27, 2006
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6167.IH
H6167
pwalker on PRODPC60 with BILLS
Internal Revenue Code of 1986 (26 U.S.C. 3401(d)) 
or shall be defined by the State or locality in which 
the duties are performed. 
(4) LOCALITY.—The term ‘‘locality’’ means any 
political subdivision, agency, or instrumentality of a 
State. 
(5) STATE.—The term ‘‘State’’ means each of 
the several States (or any subdivision thereof), or 
any territory or possession of the United States. 
(6) WAGES OR OTHER REMUNERATION.—The 
term ‘‘wages or other remuneration’’ shall be defined 
by the State or locality in which the employment du-
ties are performed. 
Æ 
VerDate Aug 31 2005 
23:04 Sep 27, 2006
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\H6167.IH
H6167
pwalker on PRODPC60 with BILLS