Territorial Tax Parity Act of 2019

Bill: 116-hr-411
Sponsor: full_name: Del. Plaskett, Stacey E. [D-VI-At Large]
Introduced: 2019-01-09
Policy area: Taxation
Subjects: American Samoa

Caribbean area

Guam

Northern Mariana Islands

Puerto Rico

Tax administration and collection, taxpayers

Taxation of foreign income

U.S. territories and protectorates

Virgin Islands
Latest action: action_date: 2019-01-09
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2019-01-09
action_desc: Introduced in House
text: <p><b>Territorial Tax Parity Act</b> <b>of 2019</b></p> <p> This bill modifies the income source rules that apply with respect to the taxation of income from U.S. possessions (Guam, American Samoa, the Northern Mariana Islands, Puerto Rico, and the Virgin Islands). </p> <p>Under current law, income is not possession source income if it is treated as (1) income from sources within the United States, or (2) as effectively connected with the conduct of a trade or business within the United States. The bill amends this rule to specify that it applies only to the extent that the income is attributable to an office or fixed place of business within the United States.</p> <p>The bill also modifies the income source rules that apply to certain personal property sales in the Virgin Islands. </p>

tv_txt: I 116th CONGRESS 1st Session H. R. 411 IN THE HOUSE OF REPRESENTATIVES January 9, 2019 Ms. Plaskett introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to modify the source rules to provide for economic recovery in the possessions of the United States.

1. Short title This Act may be cited as the Territorial Tax Parity Act of 2019 . 2. Modification to source rules involving possessions (a) In general Section 937(b)(2) of the Internal Revenue Code of 1986 is amended by inserting , but only to the extent such income is attributable to an office or fixed place of business within the United States (determined under the rules of Section 864(c)(5)) before the period at the end. (b) Source rules for personal property sales Section 865(j)(3) of such Code is amended by inserting , 932, after 931 . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2018.