Collapse to view only § 384. Separability
- § 381. Imposition of net income tax
- § 382. Assessment of net income taxes
- § 383. “Net income tax” defined
- § 384. Separability
§ 381. Imposition of net income tax
(a) Minimum standards
No State, or political subdivision thereof, shall have power to impose, for any taxable year ending after September 14, 1959, 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 representative, 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 representative, 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) Domestic corporations; persons domiciled in or residents of a State
The provisions of subsection (a) shall not apply to the imposition of a net income tax by any State, or political subdivision thereof, with respect to—
(1) any corporation which is incorporated under the laws of such State; or
(2) any individual who, under the laws of such State, is domiciled in, or a resident of, such State.
(c) Sales or solicitation of orders for sales by independent contractors
(d) Definitions
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.
(Pub. L. 86–272, title I, § 101, Sept. 14, 1959, 73 Stat. 555.)
§ 382. Assessment of net income taxes
(a) Limitations
(b) Collections
The provisions of subsection (a) shall not be construed—
(1) to invalidate the collection, on or before September 14, 1959, of any net income tax imposed for a taxable year ending on or before such date, or
(2) to prohibit the collection, after September 14, 1959, of any net income tax which was assessed on or before such date for a taxable year ending on or before such date.
(Pub. L. 86–272, title I, § 102, Sept. 14, 1959, 73 Stat. 556.)
§ 383. “Net income tax” defined
For purposes of this chapter, the term “net income tax” means any tax imposed on, or measured by, net income.
(Pub. L. 86–272, title I, § 103, Sept. 14, 1959, 73 Stat. 556.)
§ 384. Separability
If any provision of this chapter or the application of such provision to any person or circumstance is held invalid, the remainder of this chapter or the application of such provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby.
(Pub. L. 86–272, title I, § 104, Sept. 14, 1959, 73 Stat. 556.)