WASHINGTON Is the third time a charm for federal legislation that would restrict states from imposing corporate income and other business taxes on interstate commerce unless those involved in the activities have a substantial nexus, or connection, with the state seeking to impose the tax?

Congress is currently considering a bill, titled Business Activities Tax Simplification Act of 2010 (H.R. 1083), that would put limits on the states ability to impose their taxes on businesses engaged in interstate commerce.

Similar legislation has been introduced in at least the last three sessions of Congress, and the earlier bills received hearings but stalled.

Last month, the House Subcommittee on Commercial and Administrative Law of the Judiciary Committee held a hearing on the latest version of the legislation, H.R. 1083.

As the bill is currently written, it would do little for interstate motor carriers, a group of businesses that are at least as much exposed to unfair taxes of this sort as any other kinds of business.

But efforts are being made to submit language that would go a long way toward solving many carriers nexus problems, as well as making state practices in this respect more uniform.

Live witnesses at last months hearing were limited to one representative from business and one from state government, along with an academic.

As would be expected, the representative of the states urged Congress to back off, saying the states are best equipped to handle the issue fairly on their own.

However, written testimony has been submitted, pointing to several areas where state tax practices have forced Congress to enact legislation protecting interstate carriers, and noting that states are beginning to retaliate against one anothers motor carriers, a situation that would seem to require federal action.