Welcome to mtc.gov

This is the Multistate Tax Commission's online hub for information about programs, projects, events, training, and other state tax resources. Click here, If you would like to be added to the Commission's public notice email list.

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Fall Committee Meetings

November 8 - 11, 2021
The SALT Attorney Training session, Uniformity Committee, Audit Committee, Nexus Committee, Strategic Planning Committee, and Executive Committee will be meeting in Alexandria, Virginia and Remotely.

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National Nexus Program

Visit the National Nexus Program page for more information.

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News & Information

VAS Holdings & Investments LLC v. Commissioner of Revenue

The Multistate Tax Commission has filed an amicus brief in the case of VAS Holdings and Investments LLC v. Commissioner of Revenue, Massachusetts Supreme Judicial Court No. SJC-13139. At issue in the case is whether Massachusetts had the statutory and constitutional authority to impose its income tax on the capital gain income recognized by an out of state investor on the sale of its ownership interest in a Massachusetts’-based LLC. The taxpayer concedes that the state had sufficient “nexus” to impose tax on its income derived from operations of the LLC within the state but argues that the absence of a unitary business relationship between the out of state owner and the in-state LLC precludes taxation of capital gain income. To read the article, click the "Read More" button below.

Santa Fe Natural Tobacco Co. v. Dept. of Revenue

The Multistate Tax Commission has filed an amicus brief with the Oregon Tax Court in Santa Fe Natural Tobacco Co. v. Dept. of Revenue. This case considers whether in-state activities conducted by an independent contractor pursuant to a contract with an out-of-state seller negates the seller’s P.L. 86-272 income tax immunity. The Commission’s brief, filed in support of the Oregon Department of Revenue, sets forth the legislative history of P.L. 86-272 and Congress’s narrow intent when enacting the statute. The brief also describes U.S. Supreme Court preemption jurisprudence, which provides that federal preemptions should be narrowly construed and that courts should not interpret federal statutes to preempt state taxing powers unless that is the clear and manifest purpose of Congress. You can read the brief by clicking here .

Mobile Workforce Proposals – A Comparison – November 2021 Update

In 2011, the MTC developed model legislation addressing the issue of workers temporarily in the state for short time-periods (“mobile workers”). This was a response to federal legislation that would have preempted state law and which contained provisions that would have created administrative problems for the states. The Council On State Taxation (COST), long a proponent of this federal legislation, has developed a draft state legislative proposal which contains provisions similar to current federal proposals. During the 2021 state legislative sessions, states have considered, and in some cases passed, bills addressing mobile workers. MTC staff has prepared analysis and a detailed comparison of the MTC model, the COST draft, and the latest federal bill from the current 117th Congress, which shows the significant differences. The Commission has recommended that states wanting to address this issue consider the MTC model. Click here , to access the analysis.

The Commission has Approved Two Uniformity Proposals for Recommendation to the States

The first proposal approved by the Commission is an alternative Model Statute for Combined Reporting following the Finnigan method. This is the method that states are moving toward—which treats the unitary group as a single taxpayer.

The second proposal includes revisions to the Statement Concerning Practices of the Multistate Tax Commission and Supporting States Under Public Law 86-272. These revisions address activities conducted via the Internet. The revised statement is available here.

Anatomy of a Domestic Tax Shelter

Tax Analysts published an article by MTC Senior Counsel Bruce Fort in its May 17, 2021 publications Tax Notes State, Tax Notes Federal and Tax Notes International entitled, “Anatomy of a Domestic Tax Shelter” regarding the use of so-called 80/20 companies as a means to artificially shift profits to non-taxed entities. The article describes the genesis of the domestic 80/20 company exclusion from the states’ water’s edge combined reporting regimes in the 1980’s, when states moved away from world-wide combined reporting in response to threatened federal preemption. Currently 16 states exclude U.S. companies with predominately foreign property and payroll factors from their combined reports.

To read the article, click the "Read More" button below.

An Insider’s View of the MTC’s P.L. 86-272 Project

In the fall of 2018, the MTC’s Uniformity Committee tasked a work group consisting of representatives from a dozen states to update the “Statement Concerning Practices of the Multistate Tax Commission and Signatory States Under Public Law 86-272.” The Statement was last revised in 2001.

In this article, Brian Hamer, MTC counsel, describes the proposed revisions to the Statement and the path that the work group pursued to reach the decisions they made. He also responds to criticisms that have been raised to the proposed revisions and explains why those criticisms are not well founded.

The Commission will consider adopting the proposed revisions for recommendation to the states at its 2021 annual meeting in August. To read the article, click the ‘Read More’ button below.