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The Business Activity Tax Simplification Act modernizes federal restrictions on state taxation of interstate commerce by amending the Public Law 86-272 framework. It extends protections to digital goods and services, information gathering, and transactions beyond tangible personal property, while establishing a physical presence requirement for states to impose net income or business activity taxes on out-of-state persons. The bill also sets standards for combined reporting and apportionment formulas when affiliated entities are taxed together.
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