Section 18 Regulatory Project


Project Description

Sec. 18 Regulatory Project

The Section 1 and 17 workgroups have identified a list of issues that may need to be addressed by the Uniformity Committee in light of changes to Article IV (UDITPA) adopted by the Commission in 2014 and 2015. The list includes (but is not limited to) the following:
 
  • Address the possible distortion that could be caused by the exclusion of functional receipts from the definition of “receipts” for purposes of the receipts factor in certain circumstances.
  • Consider exceptions to the definition of “receipts,” which now excludes receipts from securities and hedging, where these receipts might represent “transactional” receipts for certain taxpayers (e.g. brokers) as well as how possible distortion might be avoided (e.g. churning of investments).
  • Consider whether receipts from factoring of receivables should ever be included in the receipts factor.
  • Address any situations where general population data, used under the draft Section 17 sourcing rules, might result in distortion and what methods might be used to address that distortion.
  • Consider whether there needs to be a “de minimis rule” for sourcing of receipts in certain instances so that the taxpayer may use a proxy for sourcing, or possibly throw out those receipts from the factor.
  • Address regulations that might be needed to interpret and implement the amendments to Article IV, Section 18 made by the Commission in 2015.
  • Consider other special industry rules that might be necessary.


PUBLIC NOTICE & AGENDA

Compact Article IV Section 18 Proposed Model 
Regulations Working Group 

via Teleconference

Every Tuesday, until further notice
3:00 P.M. - 4:00 P.M. Eastern Time

via Teleconference

 

Dial-In Number: 719-325-2630
Conference Code: 911788#

I. Welcome and Introductions

Holly Coon, Business Audit Manager,  Alabama Department of Revenue
 
II. Initial Public Comment Period 
 
III. Continuation of Drafting Efforts on Model General Regulation for Taxpayers with De Minimis Amounts of “Receipts” Subject to Apportionment. 

IV. Adjournment. (4:00 p.m.) 
















Meeting Materials
 

Additional information on this meeting and agenda may be secured from Bruce Fort, Multistate Tax Commission, 444 North Capitol Street, N.W., Suite 425, Washington, D.C. 20001-1538, Telephone: (202) 650-0300.

 


 

 UDITPA Sec. 18 Regulatory Project  Work Group Meeting
 Reference Information


staff proposal 5-2-16 HH, May 2, 2016The draft of the proposed Model General Regulation as updated Dec. 5, 2016, is found here.Updated clean-up to Section 18 Draft, 4/3/17Updated Section 18 examples Section 18 Draft - Current as of 9/5/17Section 18 Draft - Current as of 9/19/17