What this bill does
AI plain-language summaryRight now, states are not allowed to charge income tax to out-of-state sellers whose only activity in that state is asking for orders for physical products, as long as those orders are approved and shipped from outside the state. Courts have said "asking for orders" includes only activities directly tied to making sales requests with no separate business purpose. This bill would broaden what counts as "asking for orders" to also include business activities that help with getting orders, even if those activities serve another useful business purpose on their own. This change would make it harder for states to tax out-of-state sellers by claiming their in-state activities go beyond just seeking orders.
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