Mobile Workforce State Income Tax Simplification Act of 2015

Bill: 114-hr-2315
Sponsor: full_name: Rep. Bishop, Mike [R-MI-8]
Introduced: 2015-05-14
Policy area: Taxation
Subjects: Employment taxes

Intergovernmental relations

State and local taxation
Latest action: action_date: 2016-09-22
text: Received in the Senate.

Summaries:
action_date: 2015-05-14
action_desc: Introduced in House
text: <p><strong>Mobile Workforce State Income Tax Simplification Act of 2015</strong></p> <p>Prohibits the wages or other remuneration earned by an employee who performs employment duties in more than one state from being 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. Exempts employers from withholding of tax and information reporting requirements for employees not subject to income tax under this Act. Allows an employer, for purposes of determining penalties related to employer withholding or reporting requirements, to rely on an employee's annual determination of the time such employee will spend working in a state in the absence of fraud or collusion by such employee. </p> <p>Exempts from the definition of "employee" for purposes of this Act professional athletes, professional entertainers, and public figures who are persons of prominence who perform services for wages or other remuneration on a per-event basis. </p>

action_date: 2016-09-21
action_desc: Passed House without amendment
text: <p>(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)</p> <p><strong>Mobile Workforce State Income Tax Simplification Act of 2015</strong></p> <p>(Sec.2) This bill prohibits the wages or other remuneration earned by an employee who performs employment duties in more than one state from being 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. </p> <p>The bill also exempts employers from state income tax withholding and information reporting requirements for employees not subject to income tax under this bill. </p> <p>For the purpose of determining penalties related to employer withholding or reporting requirements, an employer may rely on an employee's annual determination of the time such employee will spend working in a state in the absence of fraud or collusion by such employee. </p> <p>The bill exempts from the definition of "employee" professional athletes, professional entertainers, and public figures who are persons of prominence who perform services for wages or other remuneration on a per-event basis.</p> <p>(Sec. 3) The bill takes effect on January 1 of the second year that begins after the date of the enactment of this bill. </p>

tv_txt: I 114th CONGRESS 1st Session H. R. 2315 IN THE HOUSE OF REPRESENTATIVES May 14, 2015 Mr. Bishop of Michigan (for himself, Mr. Johnson of Georgia , Mr. Smith of Texas , Mr. Walker , Mr. Ross , Mr. Murphy of Florida , Mr. Cicilline , Mr. Chaffetz , and Mr. Swalwell of California ) 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.

1. Short title This Act may be cited as the Mobile Workforce State Income Tax Simplification Act of 2015 . 2. Limitations on state withholding and taxation of employee income (a) In general No part of the wages or other remuneration 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 commencement date of employment duties in the State during the calendar year. (c) Operating rules For purposes of determining penalties related to an employer’s State income tax withholding and reporting requirements— (1) an employer may rely on an employee’s annual determination 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 determination; 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 employee, 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 employer, at its sole discretion, maintains a time and attendance system that 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 under paragraph (1). (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 performing employment duties within a State for a day if the employee performs more of the employee’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 nonresident 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 employment 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 athlete, professional entertainer, or certain public figures. (3) Professional athlete The term professional 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 performs 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 certain 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 remuneration are paid to such person for services provided 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 Internal Revenue Code of 1986 ( 26 U.S.C. 3401(d) ), unless such term is defined by the State in which the 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 contemporaneous basis to record his work location for every day worked outside of the State in which the employee’s employment duties are primarily performed; and (B) the system is designed to allow the employer 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 performed. 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. (b) Applicability This Act shall not apply to any tax obligation that accrues before the effective date of this Act.

tv_txt: I 114th CONGRESS 2d Session H. R. 2315 IN THE HOUSE OF REPRESENTATIVES AN ACT To limit the authority of States to tax certain income of employees for employment duties performed in other States.

1. Short title This Act may be cited as the Mobile Workforce State Income Tax Simplification Act of 2015 . 2. Limitations on state withholding and taxation of employee income (a) In general No part of the wages or other remuneration 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 commencement date of employment duties in the State during the calendar year. (c) Operating rules For purposes of determining penalties related to an employer’s State income tax withholding and reporting requirements— (1) an employer may rely on an employee’s annual determination 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 determination; 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 employee, 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 employer, at its sole discretion, maintains a time and attendance system that 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 under paragraph (1). (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 performing employment duties within a State for a day if the employee performs more of the employee’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 nonresident 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 employment 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 athlete, professional entertainer, or certain public figures. (3) Professional athlete The term professional 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 performs 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 certain 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 remuneration are paid to such person for services provided 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 Internal Revenue Code of 1986 ( 26 U.S.C. 3401(d) ), unless such term is defined by the State in which the 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 contemporaneous basis to record his work location for every day worked outside of the State in which the employee’s employment duties are primarily performed; and (B) the system is designed to allow the employer 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 performed. 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. (b) Applicability This Act shall not apply to any tax obligation that accrues before the effective date of this Act.

Passed the House of Representatives September 21, 2016. Karen L. Haas, Clerk.

tv_txt: II 114th CONGRESS 2d Session H. R. 2315 IN THE SENATE OF THE UNITED STATES September 22, 2016 Received AN ACT To limit the authority of States to tax certain income of employees for employment duties performed in other States.

1. Short title This Act may be cited as the Mobile Workforce State Income Tax Simplification Act of 2015 . 2. Limitations on state withholding and taxation of employee income (a) In general No part of the wages or other remuneration 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 commencement date of employment duties in the State during the calendar year. (c) Operating rules For purposes of determining penalties related to an employer’s State income tax withholding and reporting requirements— (1) an employer may rely on an employee’s annual determination 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 determination; 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 employee, 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 employer, at its sole discretion, maintains a time and attendance system that 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 under paragraph (1). (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 performing employment duties within a State for a day if the employee performs more of the employee’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 nonresident 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 employment 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 athlete, professional entertainer, or certain public figures. (3) Professional athlete The term professional 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 performs 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 certain 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 remuneration are paid to such person for services provided 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 Internal Revenue Code of 1986 ( 26 U.S.C. 3401(d) ), unless such term is defined by the State in which the 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 contemporaneous basis to record his work location for every day worked outside of the State in which the employee’s employment duties are primarily performed; and (B) the system is designed to allow the employer 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 performed. 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. (b) Applicability This Act shall not apply to any tax obligation that accrues before the effective date of this Act.

Passed the House of Representatives September 21, 2016. Karen L. Haas, Clerk

tv_txt: IB Union Calendar No. 609 114th CONGRESS 2d Session H. R. 2315 [Report No. 114–780] IN THE HOUSE OF REPRESENTATIVES May 14, 2015 Mr. Bishop of Michigan (for himself, Mr. Johnson of Georgia , Mr. Smith of Texas , Mr. Walker , Mr. Ross , Mr. Murphy of Florida , Mr. Cicilline , Mr. Chaffetz , and Mr. Swalwell of California ) introduced the following bill; which was referred to the Committee on the Judiciary September 21, 2016 Additional sponsors: Mr. Farenthold , Mr. Grothman , Mr. Deutch , Mr. Stivers , Mr. Pascrell , Mr. Wilson of South Carolina , Mr. Young of Alaska , Mr. Perlmutter , Mr. Walberg , Mr. LaMalfa , Ms. DelBene , Mr. Moolenaar , Mr. Kilmer , Mr. Marino , Mr. Hensarling , Mr. Fincher , Mr. Trott , Mr. Smith of Missouri , Mr. Kline , Mr. Hardy , Mr. Rokita , Mrs. Miller of Michigan , Mr. Pierluisi , Mr. Collins of Georgia , Mr. Huizenga of Michigan , Mrs. Noem , Mr. Jordan , Ms. Kuster , Mr. Forbes , Mr. Boustany , Mr. Thompson of California , Mr. Johnson of Ohio , Ms. Graham , Mr. Luetkemeyer , Mr. Royce , Mr. Hastings , Mr. Beyer , Mr. Pearce , Mrs. Mimi Walters of California , Mr. Upton , Mr. Olson , Mr. Goodlatte , Mr. Stewart , Mr. Mulvaney , Mr. Austin Scott of Georgia , Mr. Newhouse , Mr. Yoho , Mr. Loebsack , Ms. Sewell of Alabama , Mr. Dold , Mr. Delaney , Ms. Jenkins of Kansas , Mr. Heck of Nevada , Mr. Welch , Mr. Chabot , Ms. Granger , Ms. Sinema , Mr. Brooks of Alabama , Mr. Ratcliffe , Mr. Fleming , Mr. Veasey , Mrs. Kirkpatrick , Mrs. Blackburn , Ms. Eshoo , Mr. Franks of Arizona , Mr. Duncan of South Carolina , Mr. Cohen , Mr. Kelly of Pennsylvania , Mr. Frelinghuysen , Mr. Carter of Georgia , Mr. Lance , Ms. Herrera Beutler , Mr. LoBiondo , Mr. Sessions , Mr. Peterson , Mr. Blum , Mr. Amodei , Mr. McDermott , Mr. Bishop of Utah , Mr. Pompeo , Mr. MacArthur , Mr. Emmer of Minnesota , Mr. Barr , Mr. Rigell , Mr. Latta , Mr. Carson of Indiana , Mr. Fortenberry , Mr. Paulsen , Mr. Rice of South Carolina , Mr. O'Rourke , Mr. Roe of Tennessee , Mr. Guthrie , Mr. Cartwright , Mr. Bera , Mr. Poe of Texas , Mr. Carney , Mrs. Brooks of Indiana , Mr. Sires , Mr. Michael F. Doyle of Pennsylvania , Mr. Rooney of Florida , Mr. Buck , Ms. Gabbard , Mr. Palazzo , Mr. Gohmert , Mr. Conaway , Mr. Peters , Mr. Brat , Mr. Roskam , Mr. Culberson , Mr. Cooper , Mr. Brady of Texas , Mr. Cramer , Mr. Messer , Mr. Scott of Virginia , Mr. David Scott of Georgia , Mr. Gallego , Mr. Heck of Washington , Mr. Brendan F. Boyle of Pennsylvania , Mr. Pallone , Mr. Smith of New Jersey , Mr. Schrader , Ms. Moore , Mr. Young of Iowa , Mr. Abraham , Mr. Castro of Texas , Ms. Esty , Mrs. Comstock , Mr. Huelskamp , Mr. Miller of Florida , Mr. Curbelo of Florida , Mr. Pittenger , Mr. Guinta , Mr. Langevin , Mr. Wittman , Mr. Nunes , Mr. DesJarlais , Mr. Thornberry , Mr. Long , Mr. McCaul , Mrs. Walorski , Mr. Sam Johnson of Texas , Mr. Garrett , Mr. Fleischmann , Mr. Ashford , Mr. Williams , Mr. Ruppersberger , Mr. Kind , Mr. Payne , Mrs. Watson Coleman , Mr. Issa , Mr. Hurd of Texas , Mr. Young of Indiana , Mr. Bucshon , Mr. Gene Green of Texas , Mr. Hinojosa , Mr. Webster of Florida , Mr. Bilirakis , Mr. Reichert , Mr. Courtney , Mr. Smith of Nebraska , Mr. Salmon , Ms. Eddie Bernice Johnson of Texas , Mr. Sensenbrenner , Mrs. Black , Mr. Flores , Mr. Schiff , Mr. Larson of Connecticut , Mr. Yarmuth , Mr. Jenkins of West Virginia , Mr. DeSantis , Mr. Sherman , and Mr. Rouzer September 21, 2016 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed A BILL To limit the authority of States to tax certain income of employees for employment duties performed in other States.

1. Short title This Act may be cited as the Mobile Workforce State Income Tax Simplification Act of 2015 . 2. Limitations on state withholding and taxation of employee income (a) In general No part of the wages or other remuneration 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 commencement date of employment duties in the State during the calendar year. (c) Operating rules For purposes of determining penalties related to an employer’s State income tax withholding and reporting requirements— (1) an employer may rely on an employee’s annual determination 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 determination; 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 employee, 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 employer, at its sole discretion, maintains a time and attendance system that 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 under paragraph (1). (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 performing employment duties within a State for a day if the employee performs more of the employee’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 nonresident 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 employment 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 athlete, professional entertainer, or certain public figures. (3) Professional athlete The term professional 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 performs 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 certain 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 remuneration are paid to such person for services provided 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 Internal Revenue Code of 1986 ( 26 U.S.C. 3401(d) ), unless such term is defined by the State in which the 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 contemporaneous basis to record his work location for every day worked outside of the State in which the employee’s employment duties are primarily performed; and (B) the system is designed to allow the employer 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 performed. 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. (b) Applicability This Act shall not apply to any tax obligation that accrues before the effective date of this Act.

September 21, 2016 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed