S. 2524 (86th): An Act relating to the power of the States to impose net income taxes on income derived ...

...from interstate commerce, and authorizing studies by congressional committees of matters pertaining thereto

86th Congress, 1959–1960. Text as of Sep 14, 1959 (Passed Congress/Enrolled Bill).

Status & Summary | PDF | Source: GPOStatutes at Large

73 S T A T . ]     PUBLIC LAW 86-272-SEPT. 14, 1959                                               555

  SEC. 2. There are hereby authorized to be appropriated such sums, Appropriation.
in addition to the sum of $6,339,000 authorized to be appropriated
for the Crooked River Federal reclamation project in section 5 of the
Act of August 6, 1956 (70 Stat. 1058), as may be required to carry 43 use 615j.
out the purposes of this Act.
  Approved September 14, 1959.


Public Law 86-272
                                 AN ACT                                        September 14, 1959
Relating to the power of the States to impose net income taxes on income             [s. 2524]
  derived from interstate commerce, and authorizing studies by congressional
 committees of matters pertaining thereto.

 Be it enacted hy the Senate and House of Representatives            of the
United States of America in Congress assembled^                                  Taxes.
                                                                                  Income d e r i vel
                                                                               from i n t e r s t a t e
                                                                               commerce.
      T I T L E I—IMPOSITION OF MINIMUM STANDARD

   SEC. 101. (a) No State, or political subdivision thereof, shall have
power to impose, for any taxable year ending after the date of the
enactment of this Act, a net income tax on the income derived within
such State by any person from interstate commerce if the only business
activities within such State by or on behalf of such person during such
taxable year are either, or both, of the following:
        (1) the solicitation of orders by such person, or his repre-
     sentative, in such State for sales of tangible personal property,
     which orders are sent outside the State for approval or rejection,
     and, if approved, are filled by shipment or delivery from a point
     outside the State; and
        (2) the solicitation of orders by such person, or his repre-
     sentative, in such State in the name of or for the benefit of a
     prospective customer of such person, if orders by such customer
     to such person to enable such customer to fill orders resulting
     from such solicitation are orders described in paragraph (1).
   (b) The provisions of subsection (a) shall not apply to the impo-
sition of a net income tax by any State, or political subdivision thereof,
with respect to—
        (1) any corporation which is incorporated under the law^s of
     such State; or
        (2) any individual who, under the laws of such State, is domi-
     ciled in, or a resident of, such State.
   (c) For purposes of subsection ( a ) , a person shall not be considered
to have engaged in business activities within a State during any tax-
able year merely by reason of sales in such State, or the solicitation
of orders for sales in such State, of tangible personal property on
behalf of such person by one or more independent contractors, or by
reason of the maintenance of an office in such State by one or more
independent contractors whose activities on behalf of such person in
such State consist solely of making sales, or soliciting orders for sales,
of tangible personal property.                                                    Definitions.
   (d) For purposes of this section—
        (1) the term "independent contractor" means a commission
     agent, broker, or other independent contractor who is engaged
     in selling, or soliciting orders for the sale of, tangible personal
     property for more than one principal and who holds himself out
     as such in the regular course of his business activities; and
        (2) the term "representative" does not include an independent
     contractor.
   32716 O-60—38

556 PUBLIC LAW 86-273~SEPT. 14, 1959 [73 ST A T . Restrictions. SEC. 102. (a) No State, or political subdivision thereof, shall have power to assess, after the date of the enactment of this Act, anj net income tax which was imposed by such State or political subdivision, as the case may be, for any taxable year ending on or before such date, on the income derived within such State by any person from inter- state commerce, if the imposition of such tax for a taxable year ending after such date is prohibited by section 101. (b) The provisions of subsection (a) shall not be construed— (1) to invalidate the collection, on or before the date of the enactment of this Act, of any net income tax imposed for a taxable year ending on or before such date, or (2) to prohibit the collection, after the date of the enactment of this Act, of any net income tax which was assessed on or before such date for a taxable year ending on or before such date. Definition. ;SEC. 103. For purposes of this title, the term "net income tax" means any tax imposed on, or measured by, net income. Savings SEC. 104. If any provision of this title or the application of such vision. provision to any person or circumstance is held invalid, the remainder of this title or the application of such provision to persons or circum- stances other than those to which it is held invalid, shall not be affected thereby. TITLE II—STUDY AND REPORT BY CONGRESSIONAL COMMITTEES SEC. 201. The Comumittee on the Judiciary of the House of Repre- sentatives and the Committee on Finance of the United States Senate, acting separately or jointly, or both, or any duly authorized sub- committees thereof, shall make full and complete studies of all matters pertaining to the taxation by the States of income derived within the States from the conduct of business activities which are exclusively in furtherance of interstate commerce or which are a p a r t of interstate commerce, for the purpose of recommending to the Congress proposed legislation providing uniform standards to be observed by the States in imposing income taxes on income so derived. SEC. 202. The Committees shall report to their respective Houses the results of such studies together with their proposals for legisla- tion on or before J u l y 1,1962. Approved September 14, 1959. Public Law 86-273 September 14, 1959 AN ACT [H. R. 6781] To authorize the Secretary of the Interior to acquire certain additional prop- erty to be included within the Independence National Historical Park. Be it enacted hy the Senate and House of Representatives of the Ind ep e nd ence United States of America in Congress assembled, That the Secretary N at i onal Histori- cal Park. of the Interior is authorized to acquire by donation or with donated Additional land. funds, or to acquire by purchase, from the Redevelopment Authority of the City of Philadelphia the land and interests in land immediately adjacent to, but not including, the Old Saint Joseph's Church prop- erty in the city of Philadelphia, Pennsylvania, which land and inter- ests in land are identified on the records of the city of Philadelphia as 324, 826, 328, 330, 332, 334 and 336 Walnut Street, for inclusion in the Independence National Historical P a r k : Provided, That the Secretary shall first enter into an agreement with the proprietor or proprietors