,,ii  #aadth ,,congress  #b;d ,session  
,s4 #bhac  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,april #ah1    
#bjaf,mr4 ,blumenthal 7for himself and  
,mr4 ,murphy7 introduced the following  
bill2 which was read twice and referred 
to the ,committee on ,finance  ,a ,,bill
  ,to amend title #d of the ,united     
,states ,code to limit the extent to    
which ,states may tax the compensation  
earned by nonresident telecommuters and 
other multi-,state workers4  #a4 ,short 
title ,this ,act may be cited as the    
,multi-,state ,worker ,tax ,fairness    
,act of #bjaf4  #b4 ,limitation on      
,state taxation of compensation earned  
by nonresident telecommuters and other  
multi-,state workers  7a7 ,in general   
,chapter #d of title #d1 ,united ,states
 ,code1 is amended by adding at the end 
the following3  #abg4 ,limitation on    
,state taxation of compensation earned  
by nonresident telecommuters and other  
multi-,state workers  7a7 ,in general   
,in applying its income tax laws to the 

compensation of a nonresident           
individual1 a ,state may deem such      
nonresident individual to be present in 
or working in such ,state for any period
 of time only if such nonresident       
individual is physically present in such
 ,state for such period and such ,state 
may not impose nonresident income taxes 
on such compensation with respect to any
 period of time when such nonresident   
individual is physically present in     
another ,state4  7b7 ,determination of  
physical presence ,for purposes of      
determining physical presence1 no ,state
 may deem a nonresident individual to be
 present in or working in such ,state on
 the grounds that--  7#a7 such          
nonresident individual is present at or 
working at home for convenience1 or     
7#b7 such nonresident individual's work 
at home or office at home fails any     
convenience of the employer test or any 
similar test4  7c7 ,determination of    
periods of time with respect to which   
compensation is paid ,for purposes of   

determining the periods of time with    
respect to which compensation is paid1  
no ,state may deem a period of time     
during which a nonresident individual is
 physically present in another ,state   
and performing certain tasks in such    
other ,state to be--  7#a7 time that is 
not normal work time unless such        
individual's employer deems such period 
to be time that is not normal work time1
  7#b7 nonworking time unless such      
individual's employer deems such period 
to be nonworking time1 or  7#c7 time    
with respect to which no compensation is
 paid unless such individual's employer 
deems such period to be time with       
respect to which no compensation is     
paid4  7d7 ,definitions ,as used in this
 section-- 7#a7 ,state ,the term ,state 
means each of the several ,states 7or   
any subdivision thereof71 the ,district 
of ,columbia1 and any territory or      
possession of the ,united ,states4  7#b7
 ,income tax ,the term income tax has   
the meaning given such term by section  

#aaj7;c74  7#c7 ,income tax laws ,the   
term income tax laws includes any       
statutes1 regulations1 administrative   
practices1 administrative               
interpretations1 and judicial decisions4
  7#d7 ,nonresident individual ,the term
 nonresident individual means an        
individual who is not a resident of the 
,state applying its income tax laws to  
such individual4  7#e7 ,employee ,the   
term employee means an employee as      
defined by the ,state in which the      
nonresident individual is physically    
present and performing personal services
 for compensation4  7#f7 ,employer ,the 
term employer means the person having   
control of the payment of an            
individual's compensation4  7#g7        
,compensation ,the term compensation    
means the salary1 wages1 or other       
remuneration earned by an individual for
 personal services performed as an      
employee or as an independent           
contractor4  7e7 ,no inference ,nothing 
in this section shall be construed as   

bearing on-- 7#a7 any tax laws other    
than income tax laws1  7#b7 the taxation
 of corporations1 partnerships1 trusts1 
estates1 limited liability companies1 or
 other entities1 organizations1 or      
persons other than nonresident          
individuals in their capacities as      
employees or independent contractors1   
7#c7 the taxation of individuals in     
their capacities as shareholders1       
partners1 trust and estate              
beneficiaries1 members or managers of   
limited liability companies1 or in any  
similar capacities1 and  7#d7 the income
 taxation of dividends1 interest1       
annuities1 rents1 royalties1 or other   
forms of unearned income4  4  7b7       
,clerical amendment ,the table of       
sections of chapter #d of title #d1     
,united ,states ,code1 is amended by    
adding at the end the following new     
item3  #abg4 ,limitation on ,state      
taxation of compensation earned by      
nonresident telecommuters and other     
multi-,state workers4  4  7c7 ,effective

 date ,the amendments made by this      
section shall take effect on the date of
 the enactment of this ,act4