update on mobile workforce state income tax simplification act



We are pleased to announce that the Mobile Workforce State Income Tax Simplification Act was introduced in the U.S. Senate on February 5, 2015 as S. 386. The legislation would set a thirty day safe harbor from personal income tax and withholding obligations for traveling employees and their employers, including businesses, associations, governments and unions. Employees traveling to a nonresident state for fewer than thirty days would incur no personal income tax liability in the nonresident state, and the employer would have no withholding obligation. Employers and employees would continue to fulfill tax obligations to the state of residency during the 30-day safe harbor. Our lead sponsors from the 113th Senate, Senators John Thune (R-SD) and Sherrod Brown (D-OH), have reintroduced language identical to that which passed the full U.S. House of Representatives in May 2012 (H.R. 1864). Senators Brown and Thune are both members of the Senate Finance Committee where S. 386 will likely be referred.  

"We're very pleased that Senator Thune and Senator Brown - our chief cosponsors from prior sessions of Congress - have reintroduced S. 386, the Mobile Workforce State Income Tax Simplification Act.  This important bill strikes a balance between state sovereignty and the need to ensure that the mobility of our national workforce is not encumbered by 50 separate state rules applicable to nonresident traveling employees and their employers. We look forward to working with our sponsors to move the bill forward this Congress,” said Douglas L. Lindholm, President & CEO of the Council On State Taxation (COST), leader of the 270+ member coalition of supporting organizations.   

Introduction of a similar bill is likewise expected very soon in the U.S. House of Representatives. If you are interested in keeping abreast of this legislation or assisting in COST’s advocacy efforts, please contact Maureen Riehl