States and cities could lose billions annually under a congressional bill that would require businesses to have employed at least one employee in a state for 21 days, or have leased or bought property, before having to pay the state's business taxes.

The National Governors Association has opposed the proposed federal legislation, estimating that the cost of the change will total some $6.6 billion. The Congressional Budget Office has released its own statistics saying that the bill will cost local government $1 billion in its first year and as much as $3 billion annually by 2011 as companies reorganize to take advantage of the rules.

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