Congress and state corporate income taxes

The Congressional Research Service (CRS) recently published a report giving an overview of state corporate income taxes and analyzing current congressional activity affecting those taxes. There are two reasons Congress has a role in state corporate income taxes: (1) interstate commerce regulatory oversight, and (2) federal and state corporate income tax interaction.

The report focuses on four bills that are now before Congress:

H.R. 1956 (pdf, 10p.) and S.2721 (pdf, 10p.) are similar. These bills impose uniformity for nexus determination and expand the definition of goods and services relative to nexus.

S.2152 (pdf, 21p.) and S.2153 (pdf, 29p.) are streamlined sales tax legislation. States would have to simplify their sales and use taxes before they can compel remote vendors to collect those taxes.

State Corporate Income Taxes: A Description and Analysis, CRS Report RL32297 (pdf, 104KB, 19p., from Open CRS), June 30, 2006