Function

• The purpose of the act is to prohibit states from taxation on interstate commerce. To this end, the act makes it illegal to states to tax all out-of-state interactions involving property or to tax an individual who does not have physical presence in the state.
  
  

Considerations

• The act clearly defines what it means for an individual to have a physical presence in a sate. Physical presence involves employing any employees in the state, leasing or owning physical property in the state or using a third party to maintain business relationships in the state for more than 15 days in a taxable year.
  
  

History

• The act was proposed by Rep. Frederick Boucher of Virginia on Feb. 13, 2009. As of August 2010, the act had not left the House Judiciary Subcommittee on Commercial and Administrative Law.