Business Activity Tax Simplification Act of 2006
Latest action · Jul 24, 2006 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.
Progress
Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.
- IntroducedApr 28, 2005
- Passed HouseNot reached
- Passed SenateNot reached
- To the PresidentNot reached
- Became lawNot reached
Summary
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 "physical presence in a state" 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.
Cosponsors 40
Members who signed on, in the order they did. Signatures ran from Apr 28, 2005 to Mar 1, 2006, with 12 there on the day it was introduced.
| Seat | Cosponsor | Signed on | |
|---|---|---|---|
| R-VA | Eric Cantor | Original | Apr 28, 2005 |
| D-NY | Gregory W. Meeks | Original | Apr 28, 2005 |
| R-VA | J. Randy Forbes | Original | Apr 28, 2005 |
| D-VA | James P. Moran | Original | Apr 28, 2005 |
| R-OH | John A. Boehner | Original | Apr 28, 2005 |
| D-NY | Joseph Crowley | Original | Apr 28, 2005 |
| R-TX | Lamar Smith | Original | Apr 28, 2005 |
| R-OH | Patrick J. Tiberi | Original | Apr 28, 2005 |
| D-VA | Rick Boucher | Original | Apr 28, 2005 |
| R-AL | Spencer Bachus | Original | Apr 28, 2005 |
| R-OH | Steve Chabot | Original | Apr 28, 2005 |
| R-VA | Thelma D. Drake | Original | Apr 28, 2005 |
| R-MI | Fred Upton | May 4, 2005 | |
| R-SC | Joe Wilson | May 4, 2005 | |
| R-TN | Marsha Blackburn | May 4, 2005 |
Actions 11
Everything that happened, newest first.
- Jul 24, 2006Rules 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.
- Jul 17, 2006Placed on the Union Calendar, Calendar No. 330.
- Jul 17, 2006Reported (Amended) by the Committee on Judiciary. H. Rept. 109-575.
- Jun 28, 2006Committee Consideration and Mark-up Session Held.
- Jun 28, 2006Ordered to be Reported (Amended) by Voice Vote.
Related bills 2
Companion bills and other measures the record links to this one.
| Bill | Title | Relationship | Latest action |
|---|---|---|---|
| HRES 939 | Providing for consideration of the bill (H.R. 1956) to regulate certain State taxation of interstate commerce, and for other purposes. | Procedurally related | Dec 7, 2006 |
| S 2721 | Business Activity Tax Simplification Act of 2006 | Related bill | May 4, 2006 |
Subjects
Assigned by the Library of Congress. Policy area: Taxation.
Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov.