Referred to the House Committee on the Judiciary.
This bill adds a new section to Title 4 of the U.S. Code that restricts States from taxing compensation of nonresident telecommuters and multi-State workers except when the worker is physically present in the taxing State. It forbids States from using "convenience of the employer" or similar tests to attribute presence, prevents States from reclassifying compensated work time done in another State as nonwork or unpaid time, defines key terms, and takes effect on enactment.
Worker fairness and reduced double-taxation versus state revenue loss concerns
Relative to its intended legislative type, this bill is a clear substantive statute that establishes a specific limitation on State income taxation of nonresident telecommuters and multi-State workers.
This bill adds a new section to Title 4 of the U.S. Code that restricts States from taxing compensation of nonresident telecommuters and multi-State workers except when the worker is physically present in the taxing State.
It forbids States from using "convenience of the employer" or similar tests to attribute presence, prevents States from reclassifying compensated work time done in another State as nonwork or unpaid time, defines key terms, and takes effect on enactment.
Technically clear but federally preemptive tax change faces significant Senate hurdles and state opposition; moderate House prospects.
Relative to its intended legislative type, this bill is a clear substantive statute that establishes a specific limitation on State income taxation of nonresident telecommuters and multi-State workers. It contains well-defined core rules and definitions and an immediate effective date, but it stops short of providing detailed implementation guidance, fiscal/administrative acknowledgment, or mechanisms for enforcement, oversight, and resolution of foreseeable boundary cases.
Worker fairness and reduced double-taxation versus state revenue loss concerns
These are examples from the analysis, not a ranked list of the most-affected groups.
Worker fairness and reduced double-taxation versus state revenue loss concerns
Likely broadly supportive because the bill protects workers from being double-taxed and clarifies telework tax fairness.
Concern may arise about lost state revenue and potential impacts on funding for social programs, so they'd seek safeguards or offsets.
Generally favorable because it simplifies tax rules and reduces complexity for telecommuters, but wary about state fiscal impacts and legal preemption.
Would favor clarifications, temporary reviews, or safeguards to balance fairness and state budgets.
Likely strongly supportive because the bill limits state taxation, protects individual taxpayers, and reduces regulatory burdens.
Some conservatives might object to federal limits on state sovereignty, but many will favor the pro-taxpayer, pro-market result.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Technically clear but federally preemptive tax change faces significant Senate hurdles and state opposition; moderate House prospects.
The bill has not accumulated any surfaced votes yet.
Worker fairness and reduced double-taxation versus state revenue loss concerns
Technically clear but federally preemptive tax change faces significant Senate hurdles and state opposition; moderate House prospects.
Relative to its intended legislative type, this bill is a clear substantive statute that establishes a specific limitation on State income taxation of nonresident telecommuters and multi-State workers. It contains well-…
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