A bill to provide for Federal judicial review of the application of jurisdictional guidelines for the State taxation of interstate commerce and for the apportionment of interstate income among the States.

Summary

Title I: Sales and Use Taxes - States that no State or political subdivision thereof shall have the power to require a person to collect a sales or use tax with respect to a sale of tangible personal property unless the person has a business location in the State or regularly makes household deliveries in the State. Prohibits a State or political subdivision thereof from imposing a sales tax or requiring a seller to collect a sales tax or use tax with respect to an interstate sale of tangible personal property unless the destination of the sale is in that State or in a State or political subdivision for which the tax is required to be collected. Prohibits a State from imposing a use tax with respect to tangible personal property of a person without a business location in the State or an individual without a dwelling place in the State. Provides that the amount of any use tax imposed with respect to tangible personal property shall be reduced by the amount of any sales or use tax previously paid by the taxpayer with respect to the same property on account of liability to another State or political subdivision thereof. Prohibits a State or political subdivision thereof from imposing a sales tax, use tax, or other nonrecurring tax measured by cost or value with respect to household goods, including motor vehicles, brought into the State by a person who establishes residence in that State if the goods were acquired by that person 30 days or more before he establishes such residence. Immunizes sellers from liability for the collection or payment of a sales or use tax with respect to an interstate sale of tangible personal property if the purchaser of such property furnishes to the seller a registration number showing he has registered with the jurisdiction imposing the tax, or a certificate showing a basis for exemption from the tax. Stipulates that no seller shall be required by a State or political subdivision thereof to classify interstate sales for sales tax accounting purposes according to geographic areas of the State in any manner other than to account for interstate sales with destinations in political subdivisions in which the seller has a business location or regularly makes household deliveries. Title II: Gross Receipts Taxes - Prohibits a State or political subdivision thereof from imposing a gross receipts tax with respect to the interstate sale of tangible personal property unless the sale is solicited directly through a business office of the seller in the State or political subdivision thereof. Title III: Net Income Taxes - Prohibits a State or political subdivision thereof from imposing for any taxable year on a corporation taxable in more than one State, other than a bank or an insurance company, a net income tax measured by an amount of income in excess of an amount determined by a specified formula which weights the presence of the corporation in the State. Title IV: Jurisdiction of Federal Courts - Grants jurisdiction to the United States Court of Claims to review de novo any issues relating to a dispute arising under this Act. Makes determinations of the Court of Claims binding for the taxable years involved upon any State given notice or appearing as a party, subject only to review by the United States Supreme Court through certiorari. Title V: Miscellaneous Provisions - Stipulates that no charge may be imposed by a State or political subdivision thereof to cover any part of the cost of conducting outside that State an audit for a tax to which this Act applies.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 4 October 1977

   Introduced

   Referred to Senate Committee on Finance.

   Source: IntroReferral

2. 4 October 1977

   Introduced

   Introduced in Senate

   Source: IntroReferral

Votes

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Versions

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Documents

1 official file

• Introduced in Senate

  summary · EN · 4 October 1977

  Open at official source

Sponsors

• Sen. Mathias, Charles McC., Jr. [R-MD] · R · Sponsor
• · ssju00 · Standing
• · ssfi00 · Standing

Related records

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