49 Annual Conference & Committee Meetings

The Commission’s 2016 Annual Conference and Committee Meetings are held on July 25– 28, 2016 in Kansas City, Missouri.  Visit our Schedule of Events webpage for additional details.

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California Supreme Court Vindicates California and Commission in Gillette

On December 31, 2015, the California Supreme Court ruled unanimously that California was not barred from disabling the corporate income tax apportionment election contained in Article III of the Multistate Tax Compact and mandating that all taxpayers apportion their income to California by double-weighing the sales factor.

California enacted the Uniform Division of Income for Tax Purposes Act (UDITPA) in 1966.  Pursuant to UDITPA, California taxpayers were required to use an equally weighted three factor formula (property, payroll and sales) to apportion their income.  In 1974, California joined the Multistate Tax Compact.  Article III of the Compact provided an election for taxpayers to apportion their income using either the UDITPA formula or any other apportionment formula allowed by state law.  At the time, the election was superfluous because the only apportionment formula in California was the UDITPA formula.

MTC is featured in State Tax Notes

Tax-Analyst2.jpgState Tax Notes recognizes the Multistate Tax Commission for its influence on state tax policy and practice in 2015.

"The MTC had a blockbuster year, despite having a full plate and a thin staff," said University of Connecticut law professor Richard Pomp, State Tax Notes' 2013 Person of the Year for his work as hearing officer on the MTC's proposed revisions to the Uniform Division of Income for Tax Purposes Act.
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Alabama Notice for Out-of-State Sellers

Alabama has issued the following notice to all persons, firms and corporations located outside Alabama and making retail sales of tangible personal property into the State of Alabama:

Effective October 1, 2015, for tax returns which are due on or before November 20, 2015, Legislative Act No. 2015-448, entitled the “Simplified Seller Use Tax Remittance Act,” allows eligible sellers to participate in a program to collect, report and remit a flat eight percent (8%) sellers use tax on all sales made into Alabama.  An eligible seller is one that sells tangible personal property or a service into the State of Alabama from an inventory or location outside the state but does not have a physical presence in the State of Alabama and who is not otherwise required by law to collect tax on sales made into the state.
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DMA and the Overture to Overturn Quill

Helen Hecht and Lila Disque of the MTC consider Justice Kennedy’s concurrence in the Direct Marketing Association case inviting states to bring a challenge to Quill, and the general problems in mounting such a test case. The article also discusses what Justice Kennedy’s plurality opinion in the recent personal jurisdiction case, J. Mcintyre, might say about whether at least some of the Justices on the Court are rethinking the due process principles supporting state adjudicatory jurisdiction and if so, whether this might also signal a willingness to revisit Quill’s due process and related Commerce Clause underpinnings.  
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Commission Files Brief in Supreme Court

The MTC has filed an amicus brief in support of California's petition for certiorari in the United States Supreme Court. The case, Hyatt, raises the issue of state sovereignty, as it considers to what extent one state must extend legal immunities to another state. The MTC filed its brief to point out the impact that lawsuits like this one could have on state tax enforcement and on our system of cooperative federalism.
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MTC Sends Letter on Digital Goods Act

The Commission sent a letter to the chairmen and ranking members of the Senate Committee on Finance and the House Judiciary Committee regarding H.R. 1643/S. 851, the Digital Goods and Services Tax Fairness Act of 2015.  The Chair of the Commission, Alabama Commissioner of Revenue Julie Magee, expressed concerns about the bill, highlighting some flaws in the legislation --
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Trends in State Corporate Income Taxes Revisited (Again)

This article updates the article that appeared in the Winter 2007 issue of the Multistate Tax Commission Review which, in turn, updated a similar article that appeared in the Fall 2000 issue of that Review. The previous article was written at a time when state corporate income taxes were growing at unprecedented rates. However, in the recent past, this revenue source has been growing much more slowly. 
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