S. 785Senate110th Congress (2007-2009)In Committee

Telecommuter Tax Fairness Act of 2007

Introduced March 6, 2007

Legislative Activity

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2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S2721)

March 6, 2007

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SenateIntro Referral

Introduced in Senate

March 6, 2007

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S2720-2721)

March 6, 2007

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S2721)

March 6, 2007

Floor Debate

16 members

What members said about S. 785 on the floor

4 Republicans12 Democrats
Richard Burr
Sen. Richard BurrR-NC · Mar 6, 2007

Mr. President, I wish to talk about education, something many in this body take very seriously. I rise today to address the Nation's dropout crisis. Each day that our schools are open, approximately…

Edward M. Kennedy
Sen. Edward M. KennedyD-MA · Mar 6, 2007

Mr. President, one of the most profound economic shifts of the past century has been the entry of women into the workforce in tremendous numbers. In 1900, women made up only 18.4 percent of the…

Larry E. Craig
Sen. Larry E. CraigR-ID · Mar 6, 2007

Mr. President, today I am reintroducing the Withholding Tax Relief Act of 2007, which would repeal Section 511 of the Tax Increase Prevention and Reconciliation Act of 2005. Last year, Congress…

Ken Salazar
Sen. Ken SalazarD-CO · Mar 6, 2007

Mr. President, today I am introducing the Troops to Teachers Improvement Act of 2007, which will help more of our veterans and service members find second careers in our classrooms. This bill will…

Tom Harkin
Sen. Tom HarkinD-IA · Mar 6, 2007

Mr. President, our Nation faces a public health crisis of the first order. Poor diet and physical inactivity are contributing to growing rates of chronic disease in the U.S. These problems do not…

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John D. Rockefeller IV
Sen. John D. Rockefeller IVD-WV · Mar 6, 2007

Mr. President, I am proud today to join with my colleagues, Senator Kohl, Senator Coleman, Senator Feingold, and Senator Vitter, to introduce the Railroad Antitrust Enforcement Act of 2007. If…

Barack Obama
Sen. Barack ObamaD-IL · Mar 6, 2007

Mr. President, 33 years ago, this Nation faced a crisis that touched every American. In 1973, in the shadow of a war against Israel, the Arab nations of OPEC decided to embargo shipments of crude oil…

Christopher J. Dodd
Sen. Christopher J. DoddD-CT · Mar 6, 2007

Mr. President, I rise today, together with my colleague Senator Lieberman, to introduce the Telecommuter Tax Fairness Act of 2007. The Telecommuter Tax Fairness Act of 2007 will end an outdated legal…

Christopher J. Dodd
Sen. Christopher J. DoddD-CT · Mar 6, 2007

Mr. President, I rise today, together with my colleague Senator Lieberman, to introduce the Telecommuter Tax Fairness Act of 2007. The Telecommuter Tax Fairness Act of 2007 will end an outdated legal…

Herb Kohl
Sen. Herb KohlD-WI · Mar 6, 2007

Mr. President, as Chairman of the Senate Antitrust Subcommittee, I believe it is my role to investigate and help end-- monopolistic practices that exploit American consumers. In that spirit, I rise…

Thomas R. Carper
Sen. Thomas R. CarperD-DE · Mar 6, 2007

Mr. President, today I join my good friend, Sen. George Voinovich, in introducing a bill to study the current state and future needs of our national infrastructure, including rail, airports,…

Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · Mar 6, 2007

Mr. President, I come before the Senate today to re- introduce--with some changes--a bill that I first introduced on April 6, 2004, in the 108th Congress and which I reintroduced in the 109th…

Hillary Rodham Clinton
Sen. Hillary Rodham ClintonD-NY · Mar 6, 2007

Mr. President, I rise today to reintroduce the Paycheck Fairness Act in recognition of Women's History Month. I'd like to thank my colleagues Senators Kennedy, Harkin, Boxer, Cantwell, Dodd,…

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Chuck Grassley
Sen. Chuck GrassleyR-IA · Mar 6, 2007

Mr. President, Senator Feingold and I have in the past sponsored the Transparency for Independent Livestock Producers Act, or what we have generally referred to as the ``Transparency Act.'' Today we…

John Warner
Sen. John WarnerR-VA · Mar 6, 2007

Mr. President, I rise today to introduce legislation to provide some relief for our Nation's retired Federal employees from the severe increases in Federal Employee Health Benefit program (FEHBP)…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Mar 6, 2007

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Harry Reid
Sen. Harry ReidD-NV · Mar 6, 2007

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

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Introduced in SenateIssued March 6, 2007

II

110th CONGRESS

1st Session

S. 785

IN THE SENATE OF THE UNITED STATES

March 6, 2007

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 limit the extent to which States may tax the compensation earned by nonresident telecommuters.

1.

Short title

This Act may be cited as the Telecommuter Tax Fairness Act of 2007.

2.

Limitation on State taxation of compensation earned by nonresident telecommuters

(a)

In general

Chapter 4 of title 4, United States Code, is amended by adding at the end the following new section:

127.

Limitation on State taxation of compensation earned by nonresident telecommuters

(a)

In general

In applying its income tax laws to the compensation of a nonresident individual, a State may deem such nonresident individual to be present in or working in such State for any period of time only if such nonresident individual is physically present in such State for such period and such State may not impose nonresident income taxes on such compensation with respect to any period of time when such nonresident individual is physically present in another State.

(b)

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—

(1)

such nonresident individual is present at or working at home for convenience, or

(2)

such nonresident individual's work at home or office at home fails any convenience of the employer test or any similar test.

(c)

Determination of periods of time with respect to which compensation is paid

For purposes of determining the periods of time with respect to which compensation is paid, no State may deem a period of time during which a nonresident individual is physically present in another State and performing certain tasks in such other State to be—

(1)

time that is not normal work time unless such individual’s employer deems such period to be time that is not normal work time,

(2)

nonworking time unless such individual’s employer deems such period to be nonworking time, or

(3)

time with respect to which no compensation is paid unless such individual’s employer deems such period to be time with respect to which no compensation is paid.

(d)

Definitions

As used in this section—

(1)

State

The term State means each of the several States (or any subdivision thereof), the District of Columbia, and any territory or possession 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)

Employee

The term employee means an employee as defined by the State in which the nonresident individual is physically present and performing personal services for compensation.

(6)

Employer

The term employer means the person having control of the payment of an individual’s compensation.

(7)

Compensation

The term compensation means the salary, wages, or other remuneration earned by an individual for personal services performed as an employee or as an independent contractor.

(e)

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. Limitation on State taxation of compensation earned by nonresident telecommuters.

.

(c)

Effective date

The amendments made by this section shall take effect on the date of the enactment of this Act.