Business Activity Tax Simplification Act of 2026
Rep. Harrigan Proposes Bill to Stop States From Taxing Remote Businesses Without a Physical Office
This bill was recently introduced and is currently being reviewed by the House Committee on the Judiciary. It is in the early stages of the legislative process and is considered active. There are no upcoming votes scheduled at this time.
Legislative Progress
States often oppose these bills because they could lose tax money, and similar efforts have failed to pass in previous years.
Key Points
Impact Analysis
Personal Impact
Gig workers who provide digital services to clients in multiple states could benefit from clearer rules about when a state can tax their income. Under this bill, a state cannot tax a person's income unless they have a physical presence there for at least 15 days. This helps freelancers and independent contractors who serve clients across state lines remotely.
“the term ``physical presence'' shall not include-- (A) presence in a State for less than 15 days in a taxable year (or a greater number of days if provided by State law); or (B) presence in a State to conduct limited or transient business activity.”
Milestones
Referred to the House Committee on the Judiciary.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
2 articlesIs That All from the GOP Congress?
An editorial in the Wall Street Journal argued in favor of another tax bill before the elections, suggesting potential tax items for the package as the House GOP introduces measures like the Business Activity Tax Simplification Act to modernize interstate commerce rules.
Bankers want health savings accounts in reconciliation 3.0
Politico reported on the Republican Study Committee's efforts to lay the groundwork for a third reconciliation bill, which includes a flurry of new tax proposals like the Business Activity Tax Simplification Act introduced by Rep. Pat Harrigan to address state taxing power.
Source Information
Document Type
Congressional Bill
Official Title
Business Activity Tax Simplification Act of 2026
Data Sources
Sponsor
Analysis generated by AI. Always verify with official sources.