Rep. Peters Helps Pass Bill to Simplify State Income Tax Requirements
Today, U.S. Congressman Scott Peters (CA-52) helped pass the Mobile Workforce State Income Tax Simplification Act to make filing taxes easier for entrepreneurs and small businesses that operate across state lines. The bill creates a clearer framework for when states can tax individuals who do work in that state, but don’t reside there. Specifically it prevents states from taxing individuals unless they work in that state for at least 30 days. Currently, states decide for themselves how many days a non-resident must work there before they are subject to that state’s income taxes. California requires any non-resident who works there for more than 45 days to file state income taxes.
“Compliance costs hit entrepreneurs and small businesses particularly hard,” said Rep. Scott Peters. “Simplifying the tax code is one way to reduce this burden and allow entrepreneurs to focus more on growing their businesses and creating jobs. This bipartisan bill will make filing state income taxes clearer and simpler for small businesses and entrepreneurs that do work across state lines.”