States Want Tax Preemption Language Stripped From Budget Bill

The National Conference of State Legislatures wants Congress to strip restrictive interstate commerce language from a House budget reconciliation bill, contending the provision would impact revenues and infringe on states’ taxing authorities.

In a letter to House Budget Chairman Rep. Jodey Arrington (R-Texas), the bipartisan association of state lawmakers objected Wednesday to language lifted from the Interstate Commerce Simplification Act (H.R.427) and included in the budget bill the Judiciary Committee marked up April 30. The language would provide new heft to Public Law 86-272, a 1959 federal statute that prohibits states from imposing income taxes on out-of-state businesses ...