Public Law 86-272:

Question

Public Law 86-272:

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Public Law 86-272 was adopted by Congress in 1959 to provide a limitation on the states' ability to impose a net income tax on out-of-state businesses. It specifically relates to businesses whose only activity within the state is the solicitation of orders for sales of tangible personal property, where the orders are sent outside the state for approval and fulfillment. It does not pertain to the sale of stocks and bonds, medical and legal services, nor was it written by the Multistate Tax Commission.