Business Activity Tax Simplification Act

A bipartisan group of lawmakers are pressing for the passage of the Business Activity Tax Simplification Act (“BATSA”). The federal legislation would prohibit states and localities from levying certain taxes, including franchise taxes, on businesses that do not keep employees or property in that jurisdiction for more than two weeks during the year.

In a recent op-ed in support of the legislation, Reps. Goodlatte and Scott noted that a growing number of state and local governments have adopted standards to tax out-of-state businesses that may conflict with the Supreme Court’s interpretations of the Commerce Clause. The aim of BATSA is to impose uniformity among jurisdictions in the imposition of business-activity taxes. BATSA has garnered support from various business organizations, including the International Franchise Association.

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