[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2785 Introduced in Senate (IS)]
108th CONGRESS
2d Session
S. 2785
To amend title 4 of the United States Code to prohibit the double
taxation of telecommuters and others who work at home.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 9, 2004
Mr. Dodd (for himself and Mr. Lieberman) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend title 4 of the United States Code to prohibit the double
taxation of telecommuters and others who work at home.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Telecommuter Tax Fairness Act of
2004''.
SEC. 2. PROHIBITION ON DOUBLE TAXATION OF TELECOMMUTERS.
(a) In General.--Chapter 4 of title 4, United States Code, is
amended by adding at the end the following new section:
``Sec. 127. Prohibition on double taxation of telecommuters and others
who work at home
``(a) Physical Presence Required.--
``(1) In general.--In applying its income tax laws to the
salary of a nonresident individual, a State may only deem such
nonresident individual to be present in or working in such
State for any period of time if such nonresident individual is
physically present in such State for such period and such State
may not impose nonresident income taxes on such salary with
respect to any period of time when such nonresident individual
is physically present in another State.
``(2) Determination of physical presence.--For purposes of
determining physical presence, no State may deem a nonresident
individual to be present in or working in such State on the
grounds that such nonresident individual is present at or
working at home for the nonresident individual's convenience.
``(b) Definitions.--As used in this section--
``(1) State.--The term `State' includes any political
subdivision of a State, the District of Columbia, and the
possessions of the United States.
``(2) Income tax.--The term `income tax' has the meaning
given such term by section 110(c).
``(3) Income tax laws.--The term `income tax laws' includes
any statutes, regulations, administrative practices,
administrative interpretations, and judicial decisions.
``(4) Nonresident individual.--The term `nonresident
individual' means an individual who is not a resident of the
State applying its income tax laws to such individual.
``(5) Salary.--The term `salary' means the compensation,
wages, or other remuneration earned by an individual for
personal services performed as an employee or as an independent
contractor.
``(c) No Inference.--Nothing in this section shall be construed as
bearing on--
``(1) any tax laws other than income tax laws,
``(2) the taxation of corporations, partnerships, trusts,
estates, limited liability companies, or other entities,
organizations, or persons other than nonresident individuals in
their capacities as employees or independent contractors,
``(3) the taxation of individuals in their capacities as
shareholders, partners, trust and estate beneficiaries, members
or managers of limited liability companies, or in any similar
capacities, and
``(4) the income taxation of dividends, interest,
annuities, rents, royalties, or other forms of unearned
income.''.
(b) Clerical Amendment.--The table of sections of such chapter 4 is
amended by adding at the end the following new item:
``127. Prohibition on double taxation of telecommuters and others who
work at home.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of enactment of this Act.
<all>