[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1864 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 1864
To limit the authority of States to tax certain income of employees for
employment duties performed in other States.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 12, 2011
Mr. Coble (for himself and Mr. Johnson of Georgia) introduced the
following bill; which was referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To limit the authority of States to tax certain income of employees for
employment duties performed in other States.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Mobile Workforce State Income Tax
Simplification Act of 2011''.
SEC. 2. LIMITATIONS ON STATE WITHHOLDING AND TAXATION OF EMPLOYEE
INCOME.
(a) In General.--No part of the wages or other remuneration earned
by an employee who performs employment duties in more than one State
shall be subject to income tax in any State other than--
(1) the State of the employee's residence; and
(2) the State within which the employee is present and
performing employment duties for more than 30 days during the
calendar year in which the income is earned.
(b) Wages or Other Remuneration.--Wages or other remuneration
earned in any calendar year are not subject to State income tax
withholding and reporting unless the employee is subject to income tax
under subsection (a). Income tax withholding and reporting under
subsection (a)(2) shall apply to wages or other remuneration earned as
of the commencement date of duties in the State during the calendar
year.
(c) Operating Rules.--For purposes of determining an employer's
State income tax withholding and information return obligations--
(1) an employer may rely on an employee's determination of
the time expected to be spent by such employee in the States in
which the employee will perform duties absent--
(A) actual knowledge of fraud by the employee in
making the estimate; or
(B) collusion between the employer and the employee
to evade tax;
(2) if records are maintained by an employer recording the
location of an employee for other business purposes, such
records shall not preclude an employer's ability to rely on an
employee's determination as set forth in paragraph (1); and
(3) notwithstanding paragraph (2), if an employer, at its
sole discretion, maintains a time and attendance system which
tracks where the employee performs duties on a daily basis,
data from the time and attendance system shall be used instead
of the employee's determination as set forth in paragraph (1).
(d) Definitions and Special Rules.--For purposes of this Act:
(1) Day.--
(A) An employee will be considered present and
performing employment duties within a State for a day
if the employee performs the preponderance of the
employee's employment duties within such State for such
day.
(B) Notwithstanding subsection (d)(1)(A), if an
employee performs material employment duties in a
resident state and one nonresident state during one
day, such employee will be considered to have performed
the preponderance of the employee's employment duties
in the nonresident state for such day.
(C) For purposes of subsection (d)(1), the portion
of the day the employee is in transit shall not apply
in determining the location of an employee's
performance of employment duties.
(2) Employee.--The term ``employee'' shall be defined by
the State in which the duties are performed, except that the
term ``employee'' shall not include a professional athlete,
professional entertainer, or certain public figures.
(3) Professional athlete.--The term ``professional
athlete'' means a person who performs services in a
professional athletic event, provided that the wages or other
remuneration are paid to such person for performing services in
his or her capacity as a professional athlete.
(4) Professional entertainer.--The term ``professional
entertainer'' means a person who performs services in the
professional performing arts for wages or other remuneration on
a per-event basis, provided that the wages or other
remuneration are paid to such person for performing services in
his or her capacity as a professional entertainer.
(5) Certain public figures.--The term ``certain public
figures'' means persons of prominence who perform services for
wages or other remuneration on a per-event basis, provided that
the wages or other remuneration are paid to such person for
services provided at a discrete event in the form of a speech,
similar presentation or personal appearance.
(6) Employer.--The term ``employer'' has the meaning given
such term in section 3401(d) of the Internal Revenue Code of
1986 (26 U.S.C. 3401(d)) or shall be defined by the State in
which the duties are performed.
(7) State.--The term ``State'' means each of the several
States of the United States.
(8) Time and attendance system.--The term ``time and
attendance system'' means a system where the employee is
required on a contemporaneous basis to record his work location
for every day worked outside of the state in which the
employee's duties are primarily preformed and the employer uses
this data to allocate the employee's wages between all taxing
jurisdictions in which the employee performs duties.
(9) Wages or other remuneration.--The term ``wages or other
remuneration'' shall be defined by the State in which the
employment duties are performed.
SEC. 3. EFFECTIVE DATE.
This Act shall be effective on January 1, 2013.
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