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Tuesday, June 21, 2011

The Mobile Workforce State Income Tax Simplification Act of 2011

Kudos to US Representative Hank Johnson (GA) for cosponsoring the Mobile Workforce State Income Tax Simplification Act of 2011. This bill was proposed in a previous session of Congress. At the end of each session, all bills and resolutions that haven’t passed are cleared. Rep Johnson has reintroduced the bill with Rep Coble (NC).

The concept is simple: if an employer sends employees temporarily across state lines, the employer will not have to register with and withhold taxes for the other state. Temporary is defined as 30 days or less.

Rep Johnson comments:

The tax system is already too burdensome and complicated as it is. This simplifies the code and would prevent Americans who work in multiple jurisdictions from being taxed by state and local governments other than the places in which they live or perform duties over an extended period.”

The hearing was May 25, 2011 before the Subcommittee on Courts, Commercial and Administrative Law.

As someone who has had to worry about this very same issue, I am pleased that someone up in Washington “gets it.”

Perhaps they should include sales taxes and also call in bureaucrats from Texas to explain their position on trade shows. Consider this gem. The Texas Comptroller determined that an out-of-state seller of dental equipment was required to collect sales taxes because it attended an annual trade show in Texas. Mind you, the orders were filled, shipped and billed from outside Texas, but the company did send a person to attend that trade show. Yipes!

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