Business Activity Tax Simplification Act of 2006

Bill: 109-hr-1956
Sponsor: Rep. Goodlatte, Bob [R-VA-6]
Introduced: 2005-04-28 in the House
Policy area: Taxation
Subjects: Arts, Culture, Religion
Commerce
Exhibitions
Fees
Government Operations and Politics
Income tax
Interstate commerce
Law
Licenses
Local taxation
Service industries
Sports and Recreation
State taxation

Summary:
action_date: 2005-04-28
text: 
Business Activity Tax Simplification Act of 2005 - Expands the federal prohibition against state taxation of interstate commerce to: (1) include taxation of out-of-state transactions involving all forms of property, including intangible personal property and services (currently, only sales of tangible personal property are protected); and (2) prohibit state taxation of an out-of-state entity unless such entity has a physical presence in the taxing state. Sets forth criteria for determining that a person has a physical presence in a state.

action_date: 2006-07-17
text: 
Business Activity Tax Simplification Act of 2006 - Extends the general federal prohibition against state taxation (i.e., net income taxation) of interstate commerce to include taxation of out-of-state transactions involving all forms of property, including intangible personal property and services (currently, only sales of tangible personal property are protected). Extends such prohibition to other business activity taxes (defined as taxes imposed on or measured by gross receipts, gross income, or gross profits, a business license tax, a business and occupation tax, a franchise tax, a single business tax or a capital stock tax, or any other tax based on business activity). 

Prohibits state taxation of activities in interstate commerce unless the taxpayer has a physical presence in the taxing state. Defines &quot;physical presence in a state&quot; to mean business and leasing activities for more than 21 days in the taxing state. Disregards in determining such 21-day period: (1) activities relating to the purchase of goods or services for a business; (2) news-gathering activities; (3) certain meetings with government officials; (4) attending educational or training conferences; or (5) participation in charitable activities. Reduces the 21-day period to one day for: (1) live performances and sporting events in the taxing state when the audience is more than 100 individuals; (2) sales of tangible personal property made in the taxing state if delivery is completed in such state; and (3) the performance of services that physically affect real property within the taxing state. 

Excludes from this Act's prohibition against state taxation: (1) entities incorporated or formed under the laws of such state; (2) individuals domiciled in such state; and (3) the owner or beneficiary of a partnership, S corporation, limited liability company, or similar entity that has a physical presence in the taxing state.


Legislative actions:
action_date: 2006-07-24
text: Rules Committee Resolution H. Res. 939 Reported to House. Rule provides for consideration of H.R. 1956 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments.
action_date: 2006-07-17
text: Placed on the Union Calendar, Calendar No. 330.
action_date: 2006-07-17
text: Reported (Amended) by the Committee on Judiciary. H. Rept. 109-575.
action_date: 2006-07-17
text: Reported (Amended) by the Committee on Judiciary. H. Rept. 109-575.
action_date: 2006-06-28
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2006-06-28
text: Committee Consideration and Mark-up Session Held.
action_date: 2005-12-13
text: Forwarded by Subcommittee to Full Committee (Amended) by Voice Vote.
action_date: 2005-12-13
text: Subcommittee Consideration and Mark-up Session Held.
action_date: 2005-09-27
text: Subcommittee Hearings Held.
action_date: 2005-06-06
text: Referred to the Subcommittee on Commercial and Administrative Law.
action_date: 2005-04-28
text: Referred to the House Committee on the Judiciary.
action_date: 2005-04-28
text: Introduced in House
action_date: 2005-04-28
text: Introduced in House