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HR 1439 112th Congress House

Business Activity Tax Simplification Act of 2011

Official title: To regulate certain State taxation of interstate commerce, and for other purposes.

Introduced: June 24, 2011 See on congress.gov
Taxation State and local taxation
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This bill died when the 112th Congress ended
It never became law before the 112th Congress (2011–2012) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 10 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Oct 21, 2011
Placed on the Union Calendar, Calendar No. 173.
Oct 21, 2011
Reported by the Committee on Judiciary. H. Rept. 112-257.
Jul 7, 2011
Ordered to be Reported by Voice Vote.
Jul 7, 2011
Committee Consideration and Mark-up Session Held.
Jul 1, 2011
Subcommittee on Courts, Commercial and Administrative Law Discharged.
Apr 13, 2011
Subcommittee Hearings Held.
Apr 8, 2011
Referred to the Subcommittee on Courts, Commercial and Administrative Law.
Apr 8, 2011
Referred to the House Committee on the Judiciary.
Apr 8, 2011
Sponsor introductory remarks on measure. (CR E674-675)
Apr 8, 2011
Introduced in House
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 Latest action October 21, 2011

Placed on the Union Calendar, Calendar No. 173.

 Plain-English summary Congressional Research Service

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

Business Activity Tax Simplification Act of 2011 - Expands the prohibition against state taxation of interstate commerce to include: (1) taxation of out-of-state sales transactions involving all forms of property, including intangible personal property and services (currently, only sales of tangible personal property are protected); and (2) all other business activity taxes in addition to net income taxes. Exempts from state taxation persons who enter a state merely to furnish information to customers and affiliates, to cover news or other events, or to gather information in the state.

Sets forth jurisdictional standards for states in imposing, assessing, or collecting a net income tax or other business activity tax on interstate activities.  Defines "physical presence in a state" as: (1) being an individual physically in a state or assigning one or more employees to be in a state, (2) using the services of an agent to establish or maintain the market in a state, and (3) leasing or owning tangible personal or real property in a state (excluding the leasing or licensing of computer software).  Excludes from the definition of "physical presence" presence in a state for less than 15 days in a taxable year or presence in a state to conduct limited or transient business activity.

Provides that this Act shall not be construed to modify or affect any state business activity tax on a partnership, an S corporation or limited liability company, or a trust or estate that has a physical presence in the state or to supersede the authority of a state to enact a law or bring a law enforcement action against persons or entities engaged in illegal activity or sham transactions.

Sets forth a rule for computing the net income tax or other business activity tax liability of an affiliated group.

Makes this Act applicable to taxable periods beginning on or after January 1, 2012.

 Bill text 2 versions

Source documents hosted by congress.gov.

 Committees of jurisdiction 2
 Cosponsors 6
All 6 Democratic 3 Republican 1
R
Jordan, Jim
Ohio · Jul 6, 2011
SENSENBRENNER, F.
· Jul 6, 2011
 D
Johnson, Henry C. "Hank"
Georgia · Jun 24, 2011
DUNCAN, JOHN
· May 10, 2011
 D
Thompson, Bennie G.
Mississippi · May 4, 2011
 D
Scott, Robert C. "Bobby"
Virginia · Apr 8, 2011
Cite this page click to expand
APA
U.S. Congress. (2026). H.R. 1439: Business Activity Tax Simplification Act of 2011. 112th Congress. Open America. https://openamerica.io/bill/112-HR-1439/
MLA
"H.R. 1439: Business Activity Tax Simplification Act of 2011." 112th Congress, 2026, Open America, https://openamerica.io/bill/112-HR-1439/.
Bluebook (legal)
H.R. 1439, 112th Cong. (2026), https://openamerica.io/bill/112-HR-1439/.
Markdown link
[H.R. 1439: Business Activity Tax Simplification Act of 2011](https://openamerica.io/bill/112-HR-1439/)
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