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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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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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 Simplification Act of 2011’’. 
SEC. 2. LIMITATIONS ON STATE WITHHOLDING AND TAX-
ATION OF EMPLOYEE INCOME. 
(a) IN GENERAL.—No part of the wages or other remu-
neration earned by an employee who performs employment 
duties in more than one State shall be subject to income 
tax in any State other than— 
(1) the State of the employee’s residence; and 
(2) the State within which the employee is 
present and performing employment duties for more 
than 30 days during the calendar year in which the 
wages or other remuneration is earned. 
(b) WAGES OR OTHER REMUNERATION.—Wages or 
other remuneration earned in any calendar year shall not 
be subject to State income tax withholding and reporting 
requirements unless the employee is subject to income tax 
in such State under subsection (a). Income tax withholding 
and reporting requirements under subsection (a)(2) shall 
apply to wages or other remuneration earned as of the com-
mencement date of employment duties in the State during 
the calendar year. 
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(c) OPERATING RULES.—For purposes of determining 
an employer’s State income tax withholding and reporting 
requirements— 
(1) an employer may rely on an employee’s de-
termination of the time expected to be spent by such 
employee in the States in which the employee will 
perform duties absent— 
(A) the employer’s actual knowledge of 
fraud by the employee in making the determina-
tion; or 
(B) collusion between the employer and the 
employee to evade tax; 
(2) except as provided in paragraph (3), if 
records are maintained by an employer in the regular 
course of business that record the location of an em-
ployee, such records shall not preclude an employer’s 
ability to rely on an employee’s determination under 
paragraph (1); and 
(3) notwithstanding paragraph (2), if an em-
ployer, at its sole discretion, maintains a time and 
attendance system that tracks where the employee per-
forms duties on a daily basis, data from the time and 
attendance system shall be used instead of the employ-
ee’s determination under paragraph (1). 
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(d) DEFINITIONS AND SPECIAL RULES.—For purposes 
of this Act: 
(1) DAY.— 
(A) Except as provided in subparagraph 
(B), an employee is considered present and per-
forming employment duties within a State for a 
day if the employee performs more of the employ-
ee’s employment duties within such State than 
in any other State during a day. 
(B) If an employee performs employment 
duties in a resident State and in only one non-
resident State during one day, such employee 
shall be considered to have performed more of the 
employee’s employment duties in the nonresident 
State than in the resident State for such day. 
(C) For purposes of this paragraph, the 
portion of the day during which the employee is 
in transit shall not be considered in determining 
the location of an employee’s performance of em-
ployment duties. 
(2) EMPLOYEE.—The term ‘‘employee’’ has the 
same meaning given to it by the State in which the 
employment duties are performed, except that the 
term ‘‘employee’’ shall not include a professional ath-
lete, professional entertainer, or certain public figures. 
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(3) PROFESSIONAL ATHLETE.—The term ‘‘profes-
sional athlete’’ means a person who performs services 
in a professional athletic event, provided that the 
wages or other remuneration are paid to such person 
for performing services in his or her capacity as a 
professional athlete. 
(4) PROFESSIONAL
ENTERTAINER.—The term 
‘‘professional entertainer’’ means a person who per-
forms services in the professional performing arts for 
wages or other remuneration on a per-event basis, 
provided that the wages or other remuneration are 
paid to such person for performing services in his or 
her capacity as a professional entertainer. 
(5) CERTAIN PUBLIC FIGURES.—The term ‘‘cer-
tain public figures’’ means persons of prominence who 
perform services for wages or other remuneration on 
a per-event basis, provided that the wages or other re-
muneration are paid to such person for services pro-
vided at a discrete event, in the nature of a speech, 
public appearance, or similar event. 
(6) EMPLOYER.—The term ‘‘employer’’ has the 
meaning given such term in section 3401(d) of the In-
ternal Revenue Code of 1986 (26 U.S.C. 3401(d)), un-
less such term is defined by the State in which the 
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employee’s employment duties are performed, in 
which case the State’s definition shall prevail. 
(7) STATE.—The term ‘‘State’’ means any of the 
several States. 
(8) TIME AND ATTENDANCE SYSTEM.—The term 
‘‘time and attendance system’’ means a system in 
which— 
(A) the employee is required on a contem-
poraneous basis to record his work location for 
every day worked outside of the State in which 
the employee’s employment duties are primarily 
preformed; and 
(B) the employer uses this data to allocate 
the employee’s wages for income tax purposes 
among all States in which the employee performs 
employment duties for such employer. 
(9) WAGES
OR
OTHER
REMUNERATION.—The 
term ‘‘wages or other remuneration’’ may be limited 
by the State in which the employment duties are per-
formed. 
SEC. 3. EFFECTIVE DATE; APPLICABILITY. 
(a) EFFECTIVE DATE.—This Act shall take effect on 
January 1 of the 2d year that begins after the date of the 
enactment of this Act. 
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(b) APPLICABILITY.—This Act shall not apply to any 
tax obligation that accrues before the effective date of this 
Act. 
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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 in-
come of employees for employment duties per-
formed in other States. 
FEBRUARY 3, 2012 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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22:35 Feb 03, 2012
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