Last week, Congressman Jim Sensenbrenner (R-WI) introduced the Business Activity Tax Simplification Act, which prohibits states from trying to impose business activity taxes on businesses located outside of their borders.  As more and more sales are transacted over the Internet, businesses both large and small have been affected by a lack of clarity of when a state can impose business activity taxes on an out-of-state business.  This bill would give clarity and certainty for businesses and protect them from the imposition of additional tax burdens.

And although this legislation is a separate issue from the Internet sales tax legislation, this bill demonstrates that many Members of Congress are very concerned about unfair burdens placed on small businesses and are prepared to propose new measures to ease the administrative obligations small businesses may otherwise face.

Learn more about Congressman Sensenbrenner and his legislation.