Bishop’s Bipartisan Bill to Simplify State Income Tax Regulations Passes House
WASHINGTON – Congressman Mike Bishop’s second bipartisan bill, the Mobile Workforce State Income Tax Simplification Act of 2017 (H.R. 1393), passed the House by voice vote on Tuesday. Joined by Congressman Hank Johnson (GA-4) and 57 Republican and Democrat co-sponsors, the legislation simplifies state income tax laws for employees who work multiple days per year outside the state of their residence.
“The House has taken a major step toward streamlining the state income tax reporting and filing process today,” said Rep. Bishop. “Currently, employers and their traveling employees must navigate their way through a complicated maze of varying state income tax laws when they leave their home state for work. By simplifying these requirements across America, we can reduce compliance costs and confusing paperwork for everyone involved. I applaud the House for passing our bipartisan legislation and urge the Senate to join us in supporting our mobile workforce and economy.”
“This is an important bill for Americans who work across multiple states," said Rep. Johnson. "It reflects the needs of businesses throughout the country which benefit from the work Americans do as they contribute to the nation’s economy. This bill would simplify the patchwork of confusing state tax rules by requiring that individuals only pay taxes in a jurisdiction where they work for 30 or more days in a calendar year. This pragmatic bill furthers consistency and business opportunities that will continue to spur our economy.”
Like its companion bill S. 540, led by Senators John Thune (R-South Dakota) and Sherrod Brown (D-Ohio), the “Mobile Workforce bill” provides that an employee would only be subject to another state’s taxes if he or she works there more than 30 days per calendar year. An employee’s earnings would still remain subject to full tax in the state of his or her residence.
House Judiciary Committee Chairman Bob Goodlatte said the legislation “eases the regulatory burdens on small businesses and their employees who work across state lines, while creating a fair balance with states wishing to collect taxes on income earned in the state.”
The bill is supported by more than 300 organizations across numerous industries, including the Michigan Association of CPAs. Last Congress, the Mobile Workforce bill passed the House in September 2016. Congressman Bishop and Senator Thune’s 2015 op-ed about the bill in the Ripon Forum can be found here.