,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #biib  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,augu/ #b1 #bjac ,mr4 
,s5s5br5n] 7= himself1 ,mr4 ,goodlatte1 
,mr4 ,scott ( ,virg9ia1 ,mr4 ,ba*us1    
,mr4 ,*abot1 ,mr4 ,duncan ( ,s\?        
,c>ol9a1 ,mr4 ,jordan1 & ,mr4 ,ha/+s (  
,florida7 introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ! ,judici>y  
,a ,,bill  ,to regulate c]ta9 ,/ate     
taxation ( int]/ate comm]ce1 & = o!r    
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,bus9ess ,activity ,tax    
,simplification ,act ( #bjac4  #b4      
,mod]nization ( ,public ,law #hf-bgb    
7a7 ,solicitations ,) ,respect to ,sales
 & ,transactions ( ,o!r ,?an ,tangible  
,p]sonal ,prop]ty ,section #aja ( ! ,act
 entitl$ ,an ,act relat+ to ! p[] ( !   
,/ates to impose net income taxes on    
income d]iv$ f int]/ate comm]ce1 &      
au?oriz+ /udies by congressional        
committees ( matt]s p]ta9+ !reto1       
approv$ ,septemb] #ad1 #aiei 7#ae       
,u4,s4,c4 #cha et seq471 is am5d$--     

7#a7 9 section 7a71 by /rik+ ei!r1 or   
bo?1 & ins]t+ any "o or m2  7#b7 9      
subsection 7a77#a71 by /rik+ by su*     
p]son & all t foll[s & ins]t+  7:i* are 
s5t outside ! ,/ate = approval or       
rejection7 or cu/om]s by su* p]son1 or 8
 repres5tative1 9 su* ,/ate = sales or  
transactions1 :i* are-- 7,a7 9 ! case ( 
tangible p]sonal prop]ty1 fill$ by      
%ipm5t or deliv]y f a po9t outside !    
,/ate2 &  7,b7 9 ! case ( all o!r =ms ( 
prop]ty1 s]vices1 & o!r transactions1   
fulfill$ or di/ribut$ f a po9t outside !
 ,/ate2  2  7#c7 9 subsection 7a77#b71  
by /rik+ ! p]iod at ! end & ins]t+ a    
semicolon2  7#d7 9 subsection 7a71 by   
add+ at ! end ! foll[+ new p>agraphs3   
7#c7 ! furni%+ ( in=mation to cu/om]s or
 affiliates 9 su* ,/ate1 or ! cov]age ( 
ev5ts or o!r ga!r+ ( in=mation 9 su*    
,/ate by su* p]son1 or 8 repres5tative1 
:i* in=mation is us$ or dissem9at$ f a  
po9t outside ! ,/ate2 &  7#d7 ^? bus9ess
 activities directly relat$ to su*      
p]son's pot5tial or actual pur*ase (    

goods or s]vices )9 ! ,/ate if ! f9al   
decision to pur*ase is made outside !   
,/ate4  2  7#e7 by /rik+ subsection 7c7 
& ins]t+ ! foll[+ new subsection3  7c7  
,= purposes ( subsection 7a7 ( ?is      
section1 a p]son %all n be consid]$ to h
 engag$ 9 bus9ess activities )9 a ,/ate 
dur+ any taxable ye> m]ely--  7#a7 by   
reason ( sales or transactions 9 su*    
,/ate1 ! solicitation ( ord]s = sales or
 transactions 9 su* ,/ate1 ! furni%+ (  
in=mation to cu/om]s or affiliates 9 su*
 ,/ate1 or ! cov]age ( ev5ts or o!r     
ga!r+ ( in=mation 9 su* ,/ate1 on behalf
 ( su* p]son by "o or m indep5d5t       
contractors2  7#b7 by reason ( !        
ma9t5ance ( an (fice 9 su* ,/ate by "o  
or m indep5d5t contractors ^: activities
 on behalf ( su* p]son 9 su* ,/ate are  
limit$ to mak+ sales or fulfill+        
transactions1 solicit+ ord] = sales or  
transactions1 ! furni%+ ( in=mation to  
cu/om]s or affiliates1 &_/or ! cov]age (
 ev5ts or o!r ga!r+ ( in=mation2 or     
7#c7 by reason ( ! furni%+ ( in=mation  

to an indep5d5t contractor by su* p]son 
ancill>y to ! solicitation ( ord]s or   
transactions by ! indep5d5t contractor  
on behalf ( su* p]son4  2 &  7#f7 9     
subsection 7d77#a7--  7,a7 by ins]t+ or 
fulfill+ transactions aft] sell+2 &     
7,b7 by /rik+ ! sale (1 tangible p]sonal
 prop]ty & ins]t+ a sale or transaction1
 furni%+ in=mation1 or cov]+ ev5ts1 or  
o!rwise ga!r+ in=mation4  7b7           
,application ( ,prohibitions to ,o!r    
,bus9ess ,activity ,taxes ,title ,i ( ! 
,act entitl$ ,an ,act relat+ to ! p[] ( 
! ,/ates to impose net income taxes on  
income d]iv$ f int]/ate comm]ce1 &      
au?oriz+ /udies by congressional        
committees ( matt]s p]ta9+ !reto1       
approv$ ,septemb] #ad1 #aiei 7#ae       
,u4,s4,c4 #cha et seq471 is am5d$ by    
add+ at ! end ! foll[+3  #aje4 ,=       
taxable p]iods beg9n+ on or aft] ,janu>y
 #a1 #bjad1 ! prohibitions ( section    
#aja t apply ) respect to net income    
taxes %all also apply ) respect to ea*  
o!r bus9ess activity tax1 z def9$ 9     

section #e7;a77#b7 ( ! ,bus9ess         
,activity ,tax ,simplification ,act (   
#bjac4 ,a ,/ate or political subdivision
 !re( may n assess or collect any tax   
:i* by reason ( ?is section ! ,/ate or  
political subdivision may n impose4  4  
#c4 ,m9imum jurisdictional /&>d = /ate &
 local net income taxes & o!r bus9ess   
activity taxes  7a7 ,9 ,g5]al ,no tax+  
au?ority ( a ,/ate %all h p[] to impose1
 assess1 or collect a net income tax or 
o!r bus9ess activity tax on any p]son   
relat+ to su* p]son's activities 9      
int]/ate comm]ce unless su* p]son has a 
physical pres5ce 9 ! ,/ate dur+ !       
taxable p]iod ) respect to :i* ! tax is 
impos$4  7b7 ,requirem5ts = ,physical   
,pres5ce  7#a7 ,9 g5]al ,= purposes (   
subsection 7a71 a p]son has a physical  
pres5ce 9 a ,/ate only if su* p]son's   
bus9ess activities 9 ! ,/ate include any
 ( ! foll[+ dur+ su* p]son's taxable    
ye>3  7,a7 ,be+ an individual physically
 9 ! ,/ate1 or assign+ "o or m employees
 to be 9 ! ,/ate4  7,b7 ,us+ ! s]vices (

 an ag5t 7exclud+ an employee7 to       
e/abli% or ma9ta9 ! m>ket 9 ! ,/ate1 if 
su* ag5t does n p]=m bus9ess s]vices 9 !
 ,/ate = any o!r p]son dur+ su* taxable 
ye>4  7,c7 ,! leas+ or own+ ( tangible  
p]sonal prop]ty or ( real prop]ty 9 !   
,/ate4  7#b7 ,de m9imis physical pres5ce
 ,= purposes ( ?is section1 ! t]m       
physical pres5ce %all n include--  7,a7 
pres5ce 9 a ,/ate = less ?an #ae days 9 
a taxable ye> 7or a great] numb] ( days 
if provid$ by ,/ate law72 or  7,b7      
pres5ce 9 a ,/ate to conduct limit$ or  
transi5t bus9ess activity4  7c7 ,taxable
 ,p]iods ,n ,consi/+ ( a ,ye> ,if !     
taxable p]iod = :i* ! tax is impos$ is n
 a ye>1 !n any requirem5ts express$ 9   
days = e/abli%+ physical pres5ce "u ?is 
,act %all be adju/$ pro rata accord+ly4 
7d7 ,m9imum ,jurisdictional ,/&>d ,?is  
section provides = m9imum jurisdictional
 /&>ds & %all n be con/ru$ to modify1   
affect1 or sup]s$e ! au?ority ( a ,/ate 
or any o!r provision ( ,f$]al law all[+ 
p]sons to conduct great] activities )\t 

! imposition ( tax jurisdiction4  7e7   
,exceptions  7#a7 ,dome/ic bus9ess      
entities & individuals domicil$ 91 or   
resid5ts (1 ! /ate ,subsection 7a7 does 
n apply ) respect to--  7,a7 a p]son    
7o!r ?an an individual7 t is incorporat$
 or =m$ "u ! laws ( ! ,/ate 7or domicil$
 9 ! ,/ate7 9 :i* ! tax is impos$2 or   
7,b7 an individual :o is domicil$ 91 or 
a resid5t (1 ! ,/ate 9 :i* ! tax is     
impos$4  7#b7 ,taxation ( p>tn]s &      
simil> p]sons ,?is section %all n be    
con/ru$ to modify or affect any ,/ate   
bus9ess activity tax liability ( an own]
 or b5efici>y ( an entity t is a        
p>tn]%ip1 a ,s corporation 7z def9$ 9   
section #acfa ( ! ,int]nal ,rev5ue ,code
 ( #aihf71 a limit$ liability company   
7classifi$ z a p>tn]%ip = ,f$]al income 
tax purposes71 a tru/1 an e/ate1 or any 
o!r simil> entity1 if ! entity has a    
physical pres5ce 9 ! ,/ate 9 :i* ! tax  
is impos$4  7#c7 ,pres]vation ( au?ority
 ,?is section %all n be con/ru$ to      
modify1 affect1 or sup]s$e ! au?ority ( 

a ,/ate to enact a law & br+ an en=cem5t
 action "u su* law or exi/+ law aga9/ a 
p]son or p]sons or an entity or         
entities1 includ+ b n limit$ to relat$  
p]sons or entities1 t is or are engag$ 9
 an illegal activity1 a %am transaction1
 or an actual abuse 9 its or _! bus9ess 
activities 9 ord] to ensure a prop]     
reflection ( its or _! tax liabilities1 
nor %all x sup]s$e ! au?ority ( a ,/ate 
to require comb9$ report+4  #d4 ,gr\p   
returns ,if1 9 comput+ ! net income tax 
or o!r bus9ess activity tax liability ( 
a p]son = a taxable ye>1 ! net income or
 o!r economic results ( affiliat$ p]sons
 is tak5 into acc\nt1 ! portion ( su*   
comb9$ or consolidat$ net income or o!r 
economic results t may be subject to tax
 by ! ,/ate %all be comput$ us+ !       
me?odology t is g5]ally applicable to   
bus9esses conduct+ simil> bus9ess       
activities &1 if t g5]ally applicable   
me?odology employs an apportionm5t      
=mula1 ! d5om9ator or d5om9ators ( t    
=mula %all include ! aggregate factors (

 all p]sons ^: net income or o!r        
economic results are includ$ 9 su*      
comb9$ or consolidat$ net income or o!r 
economic results & ! num]ator or        
num]ators %all include ! factors        
attributable to ! /ate ( only ^? p]sons 
t are !mselves subject to taxation by ! 
,/ate pursuant to ! provisions ( ?is    
,act & subject to all o!r legal         
con/ra9ts on ,/ate taxation ( int]/ate  
or =eign comm]ce4  #e4 ,def9itions &    
effective date  7a7 ,def9itions ,=      
purposes ( ?is ,act3  7#a7 ,net income  
tax ,! t]m net income tax has ! mean+   
giv5 t t]m = ! purposes ( ! ,act entitl$
 ,an ,act relat+ to ! p[] ( ! ,/ates to 
impose net income taxes on income d]iv$ 
f int]/ate comm]ce1 & au?oriz+ /udies by
 congressional committees ( matt]s      
p]ta9+ !reto1 approv$ ,septemb] #ad1    
#aiei 7#ae ,u4,s4,c4 #cha et seq474     
7#b7 ,o!r bus9ess activity tax  7,a7 ,9 
g5]al ,! t]m o!r bus9ess activity tax   
means any tax 9 ! nature ( a net income 
tax or tax measur$ by ! am\nt (1 or     

economic results (1 bus9ess or relat$   
activity conduct$ 9 ! ,/ate4  7,b7      
,exclusion ,! t]m o!r bus9ess activity  
tax does n include a sales tax1 a use   
tax1 or a simil> transaction tax1 impos$
 on ! sale or acquisition ( goods or    
s]vices1 :e!r or n d5om9at$ a tax impos$
 on ! privilege ( do+ bus9ess4  7#c7    
,p]son ,! t]m p]son has ! mean+ giv5 su*
 t]m by section #a ( title #a ( ! ,unit$
 ,/ates ,code4 ,ea* corporation t is a  
memb] ( a gr\p ( affiliat$ corporations1
 :e!r unit>y or n1 is itself a sep>ate  
p]son4  7#d7 ,/ate ,! t]m ,/ate means   
any ( ! sev]al ,/ates1 ! ,di/rict (     
,columbia1 or any t]ritory or possession
 ( ! ,unit$ ,/ates1 or any political    
subdivision ( any ( ! =ego+4  7#e7      
,tangible p]sonal prop]ty ,= purposes ( 
section #c7;b77#a77;,c71 ! leas+ or own+
 ( tangible p]sonal prop]ty does n      
include ! leas+ or lic5s+ ( comput]     
s(tw>e4  7b7 ,effective ,date ,?is ,act 
%all apply ) respect to taxable p]iods  
beg9n+ on or aft] ,janu>y #a1 #bjad4