This bill amends a 1959 federal law that protects interstate commerce from state taxation by expanding what counts as "solicitation of orders." Currently, states cannot tax certain sales activities conducted by out-of-state businesses, but the definition of what qualifies has created disputes. The legislation broadens this protection to include any business activity that facilitates order solicitation, even if that activity also serves other business purposes. This change would help out-of-state sellers and service providers avoid state taxation on a wider range of activities when they're primarily focused on taking customer orders. The bill affects e-commerce companies, mail order businesses, and other interstate sellers who operate across multiple states, and it was referred to the Senate Finance Committee for consideration in September 2024.
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