Domestic Corporation Taxation Equality Act of 1991

Domestic Corporation Taxation Equality Act of 1991 - Amends the Internal Revenue Code to prohibit, with specified exceptions, the States from imposing tax on corporate taxpayers on a worldwide unitary basis, unless a taxpayer unconditionally elects to be taxed that way. Includes an express prohibition against the unitary method with respect to a domestic corporation whose average U.S. payroll, property, and sales represent less than 20 percent of its total payroll, property, and sales.

Permits a State to tax dividends received by domestic corporations from their foreign affiliates only to the extent that the State excludes from the tax base of the U.S. corporation: (1) at least 85 percent of such dividends; or (2) the portion of such dividends that effectively bears no Federal income tax after application of the foreign tax credit.