Business Activity Tax Simplification Act of 2026 regulates state taxation of interstate commerce.

The Business Activity Tax Simplification Act of 2026 aims to regulate state taxation of interstate commerce by prohibiting states from imposing net income taxes or other business activity taxes on persons without a physical presence in the state. This Act modernizes Public Law 86-272, extending its protections to cover other business activity taxes. It defines physical presence to include activities such as being an individual physically in the state or assigning employees to be in the state.

Business Activity Tax Simplification Act of 2026 regulates state taxation of interstate commerce.

The Business Activity Tax Simplification Act of 2026 aims to regulate state taxation of interstate commerce by prohibiting states from imposing net income taxes or other business activity taxes on persons without a physical presence in the state. This Act modernizes Public Law 86-272, extending its protections to cover other business activity taxes. It defines physical presence to include activities such as being an individual physically in the state or assigning employees to be in the state.