WASHINGTON – America's Community Bankers wrote the House last week as it was preparing to recess encouraging them to pass the Business Activity Tax Simplification Act (H.R. 1956) before they left town.
It was on the calendar for last week but got pulled.
According to ACB Executive Vice President and Managing Director for Government Relations Robert Davis, "BATSA would provide a consistent, national jurisdictional standard for the imposition of state and local business activity taxes on interstate commerce." The bill would clarify the states' ability to impose business activity taxes on companies that do not have a physical presence there.
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"Specifically, the bill would clarify that physical presence is the constitutional standard for imposition of business activity taxes and establish a bright-line physical presence standard. Businesses would continue to pay business activity taxes in those jurisdictions where they receive direct benefits," Davis wrote.
He concluded, "Enactment of the bill would ensure fairness, minimize litigation, promote a level playing field for taxpayers by providing a bright-line standard governing taxation and foster the kind of legally certain and stable business climate that encourages business investment, expands interstate commerce, creates new jobs and leads to a healthy economy."
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