Business activity tax federal bill re-introduced, including Joyce rule; hearing scheduled

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On Friday, April 8, 2011, US Representatives Bob Goodlatte (R-VA) and Bobby Scott (D-VA) introduced H.R. 1439, the Business Activity Tax Simplification Act of 2011.

While the legislation is substantially similar to legislation introduced in prior sessions -- including expansions of Public Law 86-272, a codified physical presence nexus standard, a 15-day de minimis period for the imposition of a business activity tax, and other changes -- it also includes a "Joyce" standard for including in the numerator of the apportionment factors only those entities "that are themselves subject to taxation by the State" pursuant to the Act's revised nexus standard.

The legislation would apply to taxable periods beginning on or after January 1, 2012. A hearing in the House Judiciary Subcommittee on Courts, Commercial and Administrative Law has been scheduled for Wednesday, April 13, 2011.



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