joint letter to house on business activity tax simplification act of 2011

8/3/2019 Joint Letter to House on Business Activity Tax Simplification Act of 2011

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Julv 6.2011

Chairman Lamar SmithChairman Howard CobleHouse Judiciary Committee and

Subcommittee on Courts, Commercial and Administrative LawUnited States House of RepresentativesWashington, DC 20515

Re: H.R. 1439. Business Activity Tax Simplification Act of 2011

Dear Chairmen Smith and Coble:

The below-listed businesses, trade associations and taxp ayer groups stronglysupport H.R. 1439, the Business Activity Tax Simplification Act of 20ll ("BATSA"),and respectfully request that you favorably report the bill out of the Committee as soon aspossible.

BATSA was introduced recently by Representatives Bob Goodlatte (R-VA) andBobby Scott (D-VA). The bill has strong bipartisan support among members of theJudiciary Committee. BATSA would establish a bright-line rule that all states wouldfollow by codiffing the traditional physical presence nexus standard governing stateimposition of corporate income taxes and comparable business activity taxes. The billalso would modernize Public Law 86-272, creating consistent standards for solicitationactivities across lines of industry. This means that a state or locality would continue to bepermitted to impose a business activity tax on a business that is physically present in itsjurisdiction(e.g., having employees, an office or real property there) for more thanfourteen days in a taxable year. A business that has no real presence, de minimls ortransient presence, or one that engages in mere solicitation or certain other activities in astate, would not be subject to taxation by the state in which such limited activities takeplace but in the state where it is physically present and has substantial activities.

BATSA also makes clear that such uniform, simplified tax jurisdiction standardswould determine whether every corporation is subjectto taxation, regardless of whether itis a member of an affiliated or combined group. Thus, it prevents extraterritorial taxationof the economic activify of a corporation merely because of its ownership affiliation.

BATSA establishes minimum tax jurisdictional standards to reduce the burden oninterstate commerce caused by the present hodge-podge of rules and regulations amongthe several taxing jurisdictions that create administrative nightmares for small and largemultistate businesses in the United States and are difficult for state and local govemmentsto administer. The bill would ensure fairness, minimize costly litigation for both stategovemments and taxpayers and create legal certainty and a stable business environmentthat encourages companies to make investments in the United States, expand interstate


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commerce and create new jobs. At the same time, the bill would ensure that businessescontinue to pay business activity taxes to support state governments in providing publicinfrastructure, schools, educational institutions, a trained workforce and other benefitsand protections. Finally, BATSA would end the disconnect between the international taxsystem's pefinanent establishment rule and the current efforts of aggressive states toexpand their tax jurisdiction, thereby eliminating concerns being raised by some of ourcountry' s treaty partners.

Thank you in advance for considering our request. We look forward to workingwithyou, your staff and all members of the House Judiciary Commiuee onthe BusinessActivity Tax Simplification Act of 2011.

Sincerelv.

Abercrombie & Fitch Co.ADCO Products, Inc.Adhesive and Sealant CouncilAgilent Technologies, Inc.Air-Conditioning, Heating and Refrigeration InstituteAlcoa Inc.American Apparel & Footwear AssociationAmerican Bankers AssociationAmerican C ompo site s Manufacturers As so c i ationAmerican Express CompanyAmerican Financial Services AssociationAmerican Homeowners Grassroots AllianceAmerican Legislative Exchange CouncilAmerican Lighting AssociationAmerican Sportfishing AssociationAmerican Trucking AssociationsA.O. Smith CorporationApple Inc.Arch Coal, Inc.Association for Competitive TechnologyAssociation of Equipment ManufacturersAutomotive Aftermarket Industry AssociationAutomotive Parts Remanufacturers AssociationBarclays CapitalBay Beyond Inc.BayerBeall's, Inc.Big Lots Stores, Inc.Birmingham Business AllianceBMC SoftwareBobrick Washroom Equipment, Inc.Boehringer Ingelheim Pharmaceuticals, Inc.


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Brunswick CorporationBurger King CorporationBusiness and Institutional Furniture Manufacturers Association (BIFMA) InternationalBusiness Council of AlabamaCalifornia B ankers AssociationCalifornia Taxpayers AssociationCamping WorldCapital One Financial CorporationCase New Holland Inc.Caterpillar Inc.CBS CorporationCitigroupComputing Technology Industry Association (CompTIA)Consumer Electronics AssociationCouncil On State Taxation (COST)The Cristol Group, Inc.Croplife AmericaCulver Franchising System, Inc., dlbla Culver'sDarden Restaurants, Inc.Dave's Gourmet, Inc.Dick's Sporting GoodsDigital Media AssociationDirect Marketing Association, Inc.Discovery Communications, Inc.The Dow Chemical CompanyeBay Inc.EBSCO Industries, Inc.EmersonFairfax County Chamber of CommerceFarm Equipment Manufacturers AssociationFashion Accessories Shippers AssociationFiesta Air Inc.Filemaker, Inc.Financial Executives International' s Commiftee on Private Company-PolicyFinancial Executives International's Committee on TaxationFinancial Services RoundtableFirehouse Restaurant Group, Inc.Fischer & Wieser Specialty Foods, Inc.Foodservice Equipment Distributors AssociationGap Inc.GE Capital Corp.General Electric Co.Greater Richmond ChamberGerberGreater Pittsburgh Chamber of CommerceGreeting Card Association


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Hatco CorporationH.B. Fuller CompanyThe Hearst CorporationHope Trucking, Inc.The Hosiery AssociationHovnanian Enterprises, Inc.HSBC-North AmericaIllinois Chamber of CommerceIllinois Technology Association (ITA)Imp erial ManufacturingINDA, Association of the Nonwoven Fabrics IndustryIndependent Lubricant Manufacturers A s so ciationIndustrial Fasteners InstituteIndustrial Heating Equipment AssociationInterlocking Concrete Pavement InstituteInternational Bottled Water AssociationInternational Business Machines CorporationInternational Franchise AssociationInvestment Company InstituteJohnson & JohnsonJowat CorporationKenrich Petrochemicals, Inc.Keowee Systems, Inc.Kimberly-C lark CorporationKitchen Cabinet Manufacturers AssociationLeggett &, Platt, IncorporatedLevi Strauss & Co.Limited Brands, Inc.LORD CorporationLouisiana Bankers AssociationLTL Service of Wisconsin" Inc.Macy's, Inc.Magazine Publishers of AmericaMarich ConfectioneryMary Kay Inc.Maryland Chamber of CommerceThe McGraw-Hill Companies, Inc.Media Financial ManagementMerck & Co., Inc.Microsoft CorporationMistco Inc.Montana Chamber of CommerceMontana Taxpayers AssociationMontebello KitchensMonterey BoatsMoodys Corporation


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Mortgage Bankers AssociationMotion Picture Association of AmericaMotor & Equipment Manufacturers AssociationNational Association of ManufacturersNational Council of Textile OrganizationsNational Foreign Trade CouncilNational Marine Manufacturers AssociationNational Restaurant AssociationNational Retail FederationNational Solid Wastes Management AssociationNational Taxpayers UnionNationwide InsuranceNestle Holdings, Inc.NetChoiceNeutral PostureNew Jersey Bankers AssociationNewspaper Association of AmericaNew York Bankers AssociationNiagara Cutter, LLCNorth American Association of Food Equipment ManufacturersNovamelt-Jowat LLCNovartis CorporationOr garization for International InvestmentOwner-Operator Independent Drivers AssociationPartnership for New York CityPasta by Valente, Inc.Pinski-Portugal and Associates, Inc.Poland SpringsPostNet International Franchise CorporationPPG Industries, Inc.PulteGroup, Inc.PurinaRockwell Collins, Inc.Sanofi USSea Fare Foods Corp.Smithfield Foods, Inc.Society of Chemical Manufacturers and AffiliatesSoftware & Information Industry AssociationSoftware Finance & Tax Executives CouncilSony Corporation of AmericaSource Atlantique, Inc.Specialty Equipment Market Association (SEMA)Steel Manufacturers AssociationStonewall Kitchen LLCStuller, Inc.Symantec Corporation


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Synopsys, Inc.TechAmericaTennessee Express, Inc.Texas Bankers AssociationTextile Care Allied Trades AssociationThomson Reuters303 Products, Inc.Time Warner Inc.Tjernlund Products, Inc.Travel Goods AssociationTrendwayT. Rowe Price Group, Inc.Tyson Foods, Inc.UPSUS Banco{pU.S. Chamber of CommerceVerisk Analytics, Inc.Vermeer CorporationViacom, Inc.Virginia B ankers AssociationVirginia Chamber of CommerceWalker Information, Inc.The Walt Disney CompanyWashington Technology Industry AssociationWaste Equipment Technology AssociationWells FargoThe Wendy's CompanyWomen Impacting Public PolicyYum! Brands. Inc.

joint letter to house on business activity tax simplification act of 2011

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