S. 3027 · Where this bill is now
In committee
Introduced in the Senate, Oct 22, 2025
What this bill does
In plain words · AI-written from the official summaryExpands tax protection for out-of-state sellers
Ever wondered how states decide whether they can tax businesses that sell things across state lines. This bill changes the legal definition of what counts as just taking orders from customers. Right now, states can't tax out-of-state sellers if their only activity in the state is requesting orders that get filled from elsewhere. The bill expands that protection to include business activities that help with taking orders, even if those activities serve other purposes too.
How it affects you
This mainly affects out-of-state businesses that sell products to people in your state. If they do certain kinds of business activities in your state beyond just taking orders, they may now have more protection from state income taxes on those activities. States could see changes in how much tax revenue they collect from these businesses.
Read the official summary (Introduced in Senate, Oct 22, 2025)
Interstate Commerce Simplification Act of 2025
This bill expands the definition of solicitation of orders to include business activities that serve an independently valuable business function apart from the solicitation of orders for purposes of the limitation on a state’s authority to impose a net income tax on an out-of-state seller.
Under current law, a state is prohibited from imposing a net income tax on income derived from within the state from interstate commerce if the only business activity within the state is the solicitation of orders for the sale of tangible personal property, provided that the orders are approved (or rejected) and filled by shipment or delivery from outside of the state. Further, the Supreme Court has held that the term solicitation of orders includes (1) activities that are strictly essential to making requests for purchases, and (2) ancillary activities that serve no independent business function apart from their connection to requests for purchases.
Under the bill, the definition of solicitation of orders is expanded to include business activities that facilitate the solicitation of orders even if such business activities serve an independently valuable business function apart from the solicitation.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 3027
A BILL
Interstate Commerce Simplification Act of 2025
Sponsor: Sen. Ron Johnson (R-WI) · Introduced Oct 22, 2025 · Taxation · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Oct 22, 2025: “Read twice and referred to the Committee on Finance.”