
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 15USC381]

 
                      TITLE 15--COMMERCE AND TRADE
 
     CHAPTER 10B--STATE TAXATION OF INCOME FROM INTERSTATE COMMERCE
 
                     SUBCHAPTER I--NET INCOME TAXES
 
Sec. 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) of this section 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

    For purposes of subsection (a) of this section, a person shall not 
be considered to have engaged in business activities within a State 
during any taxable 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, or tangible personal property.

(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, Sec. 101, Sept. 14, 1959, 73 Stat. 555.)


  Study and Report by Congressional Committees of State Taxation From 
                           Interstate Commerce

    Title II of Pub. L. 86-272, as amended by Pub. L. 87-17, Apr. 7, 
1961, 75 Stat. 41; Pub. L. 87-435, Apr. 21, 1962, 76 Stat. 55; Pub. L. 
88-42, June 21, 1963, 77 Stat. 67; Pub. L. 88-286, Mar. 18, 1964, 78 
Stat. 166, and repealed by Pub. L. 94-455, title XXI, Sec. 2121(a), Oct. 
4, 1976, 90 Stat. 1914, provided for a study by the Committee on the 
Judiciary of the House of Representatives and the Committee on Finance 
of the United States Senate, acting separately or jointly, or any duly 
authorized subcommittee thereof, of all matters pertaining to the 
taxation of interstate commerce by the States, territories, and 
possessions of the United States, the District of Columbia, and the 
Commonwealth of Puerto Rico, or any political or taxing subdivision of 
the foregoing, and for a report together with their proposals for 
legislation on or before June 30, 1965.

                  Section Referred to in Other Sections

    This section is referred to in section 382 of this title.
