I 
112TH CONGRESS 
1ST SESSION H. R. 1864 
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 
A BILL 
To limit the authority of States to tax certain income of 
employees for employment duties performed in other States. 
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 re-
muneration earned by an employee who performs employ-
VerDate Mar 15 2010 
04:44 May 21, 2011
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1864.IH
H1864
tjames on DSKG8SOYB1PROD with BILLS
ment 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 
income is earned. 
(b) WAGES OR OTHER REMUNERATION.—Wages or 
other remuneration earned in any calendar year are not 
subject to State income tax withholding and reporting un-
less the employee is subject to income tax under subsection 
(a). Income tax withholding and reporting under sub-
section (a)(2) shall apply to wages or other remuneration 
earned as of the commencement date of duties in the State 
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 
employee in the States in which the employee will 
perform duties absent— 
(A) actual knowledge of fraud by the em-
ployee in making the estimate; or 
VerDate Mar 15 2010 
04:44 May 21, 2011
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1864.IH
H1864
tjames on DSKG8SOYB1PROD with BILLS
(B) collusion between the employer and the 
employee to evade tax; 
(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); and 
(3) notwithstanding paragraph (2), if an em-
ployer, at its sole discretion, maintains a time and 
attendance system which tracks where the employee 
performs duties on a daily basis, data from the time 
and attendance system shall be used instead of the 
employee’s determination as set forth in paragraph 
(1). 
(d) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this Act: 
(1) DAY.— 
(A) An employee will be considered present 
and performing employment duties within a 
State for a day if the employee performs the 
preponderance of the employee’s employment 
duties within such State for such day. 
(B) Notwithstanding subsection (d)(1)(A), 
if an employee performs material employment 
duties in a resident state and one nonresident 
VerDate Mar 15 2010 
04:44 May 21, 2011
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1864.IH
H1864
tjames on DSKG8SOYB1PROD with BILLS
state during one day, such employee will be con-
sidered to have performed the preponderance of 
the employee’s employment duties in the non-
resident state for such day. 
(C) For purposes of subsection (d)(1), the 
portion of the day the employee is in transit 
shall not apply in determining the location of 
an employee’s performance of employment du-
ties. 
(2) EMPLOYEE.—The term ‘‘employee’’ shall be 
defined by the State in which the duties are per-
formed, except that the term ‘‘employee’’ shall not 
include a professional athlete, professional enter-
tainer, or certain public figures. 
(3) PROFESSIONAL ATHLETE.—The term ‘‘pro-
fessional 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 ca-
pacity 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 
VerDate Mar 15 2010 
04:44 May 21, 2011
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H1864.IH
H1864
tjames on DSKG8SOYB1PROD with BILLS
are paid to such person for performing services in 
his or her capacity as a professional entertainer. 
(5) CERTAIN
PUBLIC
FIGURES.—The term 
‘‘certain public figures’’ means persons of promi-
nence who perform services for wages or other remu-
neration on a per-event basis, provided that the 
wages or other remuneration are paid to such person 
for services provided at a discrete event in the form 
of a speech, similar presentation or personal appear-
ance. 
(6) EMPLOYER.—The term ‘‘employer’’ has the 
meaning given such term in section 3401(d) of the 
Internal Revenue Code of 1986 (26 U.S.C. 3401(d)) 
or shall be defined by the State in which the duties 
are performed. 
(7) STATE.—The term ‘‘State’’ means each of 
the several States of the United States. 
(8) TIME
AND
ATTENDANCE
SYSTEM.—The 
term ‘‘time and attendance system’’ means a system 
where the employee is required on a contempora-
neous basis to record his work location for every day 
worked outside of the state in which the employee’s 
duties are primarily preformed and the employer 
uses this data to allocate the employee’s wages be-
VerDate Mar 15 2010 
04:44 May 21, 2011
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1864.IH
H1864
tjames on DSKG8SOYB1PROD with BILLS
tween all taxing jurisdictions in which the employee 
performs duties. 
(9) WAGES OR OTHER REMUNERATION.—The 
term ‘‘wages or other remuneration’’ shall be defined 
by the State in which the employment duties are 
performed. 
SEC. 3. EFFECTIVE DATE. 
This Act shall be effective on January 1, 2013. 
Æ 
VerDate Mar 15 2010 
04:44 May 21, 2011
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6301
E:\BILLS\H1864.IH
H1864
tjames on DSKG8SOYB1PROD with BILLS