Interstate Commerce Simplification Act of 2025

Bill: 119-hr-427
Sponsor: full_name: Rep. Fitzgerald, Scott [R-WI-5]
Introduced: 2025-01-15
Policy area: Taxation
Latest action: action_date: 2025-01-15
text: Referred to the House Committee on the Judiciary.

Summaries:
action_date: 2025-01-15
action_desc: Introduced in House
text: <p><strong>Interstate Commerce Simplification Act of 2025</strong></p><p>This bill expands the definition of <em>solicitation of orders</em> to include business activities that serve an independently valuable business function apart from the solicitation of orders for purposes of the limitation on a state’s authority to impose a net income tax on an out-of-state seller.</p><p>Under current law, a state is prohibited from imposing a net income tax on income derived from within the state from interstate commerce if the only business activity within the state is the solicitation of orders for the sale of tangible personal property, provided that the orders are approved (or rejected) and filled by shipment or delivery from outside of the state. Further, the Supreme Court has held&nbsp;that the term&nbsp;<em>solicitation of orders</em> includes (1) activities that are strictly essential to making requests for purchases, and (2) ancillary activities that serve no independent business function apart from their connection to requests for purchases.</p><p>Under the bill, the definition of <em>solicitation of orders</em> is expanded to include business activities that facilitate the solicitation of orders even if such business activities serve an independently valuable business function apart from the solicitation.&nbsp;</p>

tv_txt: I 119th CONGRESS 1st Session H. R. 427 IN THE HOUSE OF REPRESENTATIVES January 15, 2025 Mr. Fitzgerald (for himself, Mr. Grothman , Mr. Tiffany , and Mr. Steil ) introduced the following bill; which was referred to the Committee on the Judiciary A BILL To amend Public Law 86–272 to expand the prohibition of State taxation relating to certain solicitation of orders.

1. Short title This Act may be cited as the Interstate Commerce Simplification Act of 2025 . 2. Amendment Section 101(d) of Public Law 86–272 (73 Stat. 555) is amended— (1) in paragraph (1) by striking and at the end, (2) in paragraph (2) by striking the period at the end and inserting ; and , and (3) by adding at the end the following: (3) the term solicitation of orders means any business activity that facilitates the solicitation of orders even if that activity may also serve some independently valuable business function apart from solicitation. .