Interstate Taxation Act of 1979

Interstate Taxation Act of 1979 - Title I: Sales and Use Taxes - Denies authority to a State or its political subdivisions to require a person to collect a sales or use tax with respect to a sale or use of tangible personal property unless that person: (1) has a business location in that State; (2) regularly solicits sales in that State, unless the activity consists solely of solicitation by direct mail or media advertising; or (3) regularly makes deliveries in that State other than by common carrier or by mail. Prohibits a State or its political subdivisions from including separately stated freight charges which are incident to interstate sales in the measure of a sales or use tax imposed by such State.

Limits the authority of a State to impose a sales tax or require the collection of sales or use taxes with respect to an interstate sale of tangible personal property to instances where the destination of the sale is in such State, or in a State or locality for which the tax is required to be collected by an agreement between the State of destination and the State requiring the collection of the tax, and the seller has a business location in the State requiring such collection. Limits the authority of a political subdivision of a State to impose a sales or use tax to instances where the interstate sale of tangible personal property occurs within the political subdivision. Denies the authority of a State or its political subdivision to impose a sales or use tax upon interstate sellers whose annual receipts from taxable retail sales of tangible personal property with a destination in such State are less than $20,000. Exempts States and their political subdivisions from any limits on their power to impose sales or use taxes with respect to motor vehicles and boats registered in such jurisdictions or with respect to motor fuels consumed in such jurisdictions.

Provides that the amount of any use tax imposed with respect to tangible personal property shall be reduced by the amount of any sales or use tax previously paid by the taxpayer with respect to the same property on account of liability to another State or its political subdivisions.

Exempts sellers from liability for the collection or payment of a sales or use tax with respect to an interstate sale of tangible personal property if the purchaser of such property furnishes to the seller a registration certificate showing registration with the jurisdiction imposing the tax, or a certificate showing the basis for the seller's exemption from the tax.

Permits an out-of-state seller who has less than $100,000 in annual sales to elect to collect and remit to the State of sale a combined State and local sales tax. Requires the purchaser to certify in writing the correct rate or amount applicable to the sale.

Stipulates that no seller shall be required by a State or political subdivision to classify interstate sales for sales tax accounting purposes according to geographic areas of the State in any manner other than to account for interstate sales with destinations in political subdivisions in which the seller has a business location or regularly makes household deliveries.

Permits a State or its political subdivisions to impose and collect a use tax from a purchaser or user of tangible personal property which is: (1) acquired in an interstate sale from an out-of-state seller who is not required to collect such a tax with respect to such sale; or (2) acquired outside the State and brought in by such purchaser or user.

Prohibits a State or its political subdivision from assessing a sales or use tax against any individual for periods prior to the enactment of this Act unless during such periods the individual had a business location in the State, regularly solicited orders by means of employees present in such State, or regularly made deliveries in such State other than by mail or common carrier.

Title II: Gross Receipts Taxes - Prohibits a State or its political subdivision from imposing a gross receipts tax with respect to the interstate sale of tangible personal property unless the sale is solicited directly through a business office of the seller in the State or its political subdivisions.

Title III: Net Income taxes - Prohibits a State or its political subdivisions from imposing for any taxable year on a corporation taxable in more than one State, other than banks, insurance companies, common carriers, and utilities, a net income tax measured by an amount of income in excess of an amount determined by a specified formula which weighs the presence of the corporation in the State.

Title IV: Jurisdiction of Federal Courts - Grants jurisdiction to the United States Court of Claims to review de novo any issues relating to a dispute arising under this Act. Makes determinations of the Court of Claims binding for the taxable years involved upon any State given notice or appearing as a party, subject only to review by the United States Supreme Court through a writ of certiorari.

Title V: Miscellaneous Provisions - Stipulates that no charge may be imposed by a State or political subdivision to cover any part of the cost of conducting an audit outside that State for a tax to which this Act applies.