Question

What are the two constitutional limitations and one public law that serve to limit the ability to tax out-of-state taxpayers?

Answer 1

Question 1) Two constitutional limitations that serve to limit the ability to tax out-of-state taxpayers.

1) First, the Constitution prohibits states from levying any Imposts or Duties on Imports or Exports, plus specifying that no Tax or Duty shall be laid on Articles exported from any State.

2) Second, No state shall impose any tax on interstate commerce.

Above is major two constitutional limitations that serves to limit the ability to tax out-of-state taxpayers.

Question 2) One public law that serve to limit the ability to tax out-of-state taxpayers.

Public law 86-272 serve to limt the abikity to tax out-of-state taxpayers.

It bars a state from imposing a net income tax on a business located outside that state that sells tangible personal property located outside that state for delivery to customers in that state - as long as the business's activities in that state are limited to the solicitation of orders, and all orders are approved by the business outside that state.

Thank you.