Bill 119 HR 427, also known as the "To amend Public Law 86-272 to expand the prohibition of State taxation relating to certain solicitation of orders," aims to make changes to existing legislation in order to prevent states from imposing taxes on certain types of business activities.
Public Law 86-272 currently prohibits states from taxing businesses that engage in solicitation of orders for sales of tangible personal property if those activities are limited to solicitation only. This bill seeks to expand this prohibition to also include solicitation of orders for sales of services, intangible property, and digital goods.
The purpose of this expansion is to provide clarity and consistency in the application of state tax laws to businesses that operate across state lines. By preventing states from taxing these types of business activities, the bill aims to promote interstate commerce and prevent double taxation on businesses that operate in multiple states.
Overall, Bill 119 HR 427 seeks to update and modernize existing legislation in order to better reflect the current business landscape and provide protections for businesses engaging in interstate commerce.