On July 25, 2017, the US House of Representatives Judiciary Committee’s Subcommittee on Regulatory Reform, Commercial and Antitrust Law conducted a hearing on “No Regulation Without Representation: HR 2887 and the Growing Problem of States Regulating Beyond Their Borders.” This hearing was important for several reasons:
- State tax nexus legislation has been one of the most prevalent tax issues debated by state legislatures in the last few legislative seasons.
- This legislation would preempt many of the state attempts to expand physical presence nexus.
- This bill also limits a state’s ability to regulate only those persons who establish a physical presence within the state.