On June 24, the House Judiciary Committee’s Subcommittee on Commercial and Administrative Law held a hearing on the Business Activity Tax (BAT) Simplification Act (H.R. 5267). Testifying at the hearing were the bill’s sponsors, Representatives Rick Boucher (D-VA) and Bob Goodlatte (R-VA), representatives from the business community and small business, and advocates for the states’ position.
The BAT legislation would modernize a 49-year-old federal statute that determines when states can impose income taxes on the sale of tangible personal goods. The bill would define physical presence, giving each state identical guidelines in order to ensure no state has the ability to hinder interstate commerce. Many Members attended the hearing to show their support for the legislation, but urged the business community --which supports the legislation -- and state representatives – who are opposed -- to find points of compromise before this or similar legislation would pass. MPA, working with the BAT Nexus Coalition, will continue to support this legislation.
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