PlainBillCongress, translated.Legislation. Context. Public interest.Rules Committee Resolution H. Res. 939 Reported to House. Rule provides for consideration of H.R. 1956 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments.
Congressional Research Service
Version 17 · Reported to House with amendment(s) · Jul 17, 2006
Business Activity Tax Simplification Act of 2006 - Extends the general federal prohibition against state taxation (i.e., net income taxation) of interstate commerce to include taxation of out-of-state transactions involving all forms of property, including intangible personal property and services (currently, only sales of tangible personal property are protected). Extends such prohibition to other business activity taxes (defined as taxes imposed on or measured by gross receipts, gross income, or gross profits, a business license tax, a business and occupation tax, a franchise tax, a single business tax or a capital stock tax, or any other tax based on business activity).
Prohibits state taxation of activities in interstate commerce unless the taxpayer has a physical presence in the taxing state. Defines "physical presence in a state" to mean business and leasing activities for more than 21 days in the taxing state. Disregards in determining such 21-day period: (1) activities relating to the purchase of goods or services for a business; (2) news-gathering activities; (3) certain meetings with government officials; (4) attending educational or training conferences; or (5) participation in charitable activities. Reduces the 21-day period to one day for: (1) live performances and sporting events in the taxing state when the audience is more than 100 individuals; (2) sales of tangible personal property made in the taxing state if delivery is completed in such state; and (3) the performance of services that physically affect real property within the taxing state.
Excludes from this Act's prohibition against state taxation: (1) entities incorporated or formed under the laws of such state; (2) individuals domiciled in such state; and (3) the owner or beneficiary of a partnership, S corporation, limited liability company, or similar entity that has a physical presence in the taxing state.
People & committees
Rep. Goodlatte, Bob [R-VA-6] · R–VA
Legislative record
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Rules Committee Resolution H. Res. 939 Reported to House. Rule provides for consideration of H.R. 1956 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments.
Placed on the Union Calendar, Calendar No. 330.
Reported (Amended) by the Committee on Judiciary. H. Rept. 109-575.
Reported (Amended) by the Committee on Judiciary. H. Rept. 109-575.
Ordered to be Reported (Amended) by Voice Vote.
Committee Consideration and Mark-up Session Held.
Forwarded by Subcommittee to Full Committee (Amended) by Voice Vote.
Subcommittee Consideration and Mark-up Session Held.
Subcommittee Hearings Held.
Referred to the Subcommittee on Commercial and Administrative Law.
Referred to the House Committee on the Judiciary.
Introduced in House
Introduced in House
Primary sources
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Source last updated: Apr 7, 2025. Consult Congress.gov for the current record.
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Analyze H.R.1956 as objectively as possible. Explain its main provisions, who would be affected, possible benefits and harms, implementation, exceptions, and uncertainties. Present the strongest arguments for and against it, and identify evidence needed to assess its public impact.
Examine H.R.1956 through a progressive lens, focusing on fairness, access, economic inequality, and effects on vulnerable communities. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and distinguish stated goals from demonstrated outcomes.
Examine H.R.1956 through a conservative lens, focusing on fiscal responsibility, institutional stability, federalism, and the scope of government. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and any provisions that challenge this perspective.
Examine H.R.1956 through a civil-liberties and limited-government lens. Consider individual rights, privacy, voluntary choice, accountability, and government power. Explain tradeoffs, possible safeguards, and the strongest counterarguments without assuming the proposal is beneficial or harmful.