IB 
Union Calendar No. 173 
112TH CONGRESS 
1ST SESSION H. R. 1439 
[Report No. 112–257] 
To regulate certain State taxation of interstate commerce, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 8, 2011 
Mr. GOODLATTE (for himself, Mr. SCOTT of Virginia, Mr. DUNCAN of South 
Carolina, and Ms. JACKSON LEE of Texas) introduced the following bill; 
which was referred to the Committee on the Judiciary 
OCTOBER 21, 2011 
Additional sponsors: Mr. THOMPSON of Mississippi, Mr. DUNCAN of Ten-
nessee, Mr. HASTINGS of Florida, Mr. JOHNSON of Georgia, Mr. COBLE, 
Mr. JORDAN, Mr. SENSENBRENNER, Mr. CHABOT, and Mr. DANIEL E. 
LUNGREN of California 
OCTOBER 21, 2011 
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 regulate certain State taxation of interstate commerce, 
and for other purposes. 
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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 ‘‘Business Activity Tax 
Simplification Act of 2011’’. 
SEC. 2. MODERNIZATION OF PUBLIC LAW 86–272. 
(a) SOLICITATIONS WITH RESPECT TO SALES AND 
TRANSACTIONS OF OTHER THAN TANGIBLE PERSONAL 
PROPERTY.—Section 101 of the Act entitled ‘‘An Act re-
lating to the power of the States to impose net income 
taxes on income derived from interstate commerce, and 
authorizing studies by congressional committees of mat-
ters pertaining thereto’’, approved September 14, 1959 
(15 U.S.C. 381 et seq.), is amended— 
(1) in section (a), by striking ‘‘either, or both,’’ 
and inserting ‘‘any one or more’’; 
(2) in subsection (a)(1), by striking ‘‘by such 
person’’ and all that follows and inserting ‘‘(which 
are sent outside the State for approval or rejection) 
or customers by such person, or his representative, 
in such State for sales or transactions, which are— 
‘‘(A) in the case of tangible personal prop-
erty, filled by shipment or delivery from a point 
outside the State; and 
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‘‘(B) in the case of all other forms of prop-
erty, services, and other transactions, fulfilled 
or distributed from a point outside the State;’’; 
(3) in subsection (a)(2), by striking the period 
at the end and inserting a semicolon; 
(4) in subsection (a), by adding at the end the 
following new paragraphs: 
‘‘(3) the furnishing of information to customers 
or affiliates in such State, or the coverage of events 
or other gathering of information in such State by 
such person, or his representative, which information 
is used or disseminated from a point outside the 
State; and 
‘‘(4) those business activities directly related to 
such person’s potential or actual purchase of goods 
or services within the State if the final decision to 
purchase is made outside the State.’’; 
(5) by striking subsection (c) and inserting the 
following new subsection: 
‘‘(c) For purposes of subsection (a) of this section, 
a person shall not be considered to have engaged in busi-
ness activities within a State during any taxable year 
merely— 
‘‘(1) by reason of sales or transactions in such 
State, the solicitation of orders for sales or trans-
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actions in such State, the furnishing of information 
to customers or affiliates in such State, or the cov-
erage of events or other gathering of information in 
such State, on behalf of such person by one or more 
independent contractors; 
‘‘(2) by reason of the maintenance of an office 
in such State by one or more independent contrac-
tors whose activities on behalf of such person in 
such State are limited to making sales or fulfilling 
transactions, soliciting order for sales or trans-
actions, the furnishing of information to customers 
or affiliates, and/or the coverage of events or other 
gathering of information; or 
‘‘(3) by reason of the furnishing of information 
to an independent contractor by such person ancil-
lary to the solicitation of orders or transactions by 
the independent contractor on behalf of such per-
son.’’; and 
(6) in subsection (d)(1)— 
(A) by inserting ‘‘or fulfilling transactions’’ 
after ‘‘selling’’; and 
(B) by striking ‘‘the sale of, tangible per-
sonal property’’ and inserting ‘‘a sale or trans-
action, furnishing information, or covering 
events, or otherwise gathering information’’. 
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