MultiTax Commission

An intergovernmental state tax agency whose mission is to promote uniform and consistent tax policy and administration among the states, assist taxpayers in achieving compliance with existing tax laws, and advocate for state and local sovereignty in the development of tax policy.

https://mtc.gov/wp-content/uploads/2023/06/Draft-Revision-to-MTC-Airlines-Rule-6-7-23.docxModel Receipts Sourcing Regulation Review Project

 

 

Description of Project

 

 

 

 

At its August 2, 2022 meeting, the Uniformity Committee agreed to undertake a project and form a work group to review its model receipts (sales) sourcing regulations for income apportionment purposes, including special industry regulations and more recently adopted market-based sourcing regulations. The goal of this project is to identify updates, corrections, or conforming changes, to consider issues that may not be sufficiently addressed by existing model regulations, and to make recommendations to the committee for its action. Those interested in the project can follow the process on this web page and can also contact Brian Hamer, MTC counsel.

 

 

 

 

NEXT MEETING – Thursday – 3:00 P. M. Eastern
Log in from your computer, tablet or smartphone.
https://meet.goto.com/955848405

 

 

Or dial in using your phone
United States: (872) 240-3212
Access Code: 955-848-405

 

 

AGENDA for December 15, 2022 Meeting
(See links to documents that follow)

 

 

 

 

I. Welcome and Introductions – Katie Frank, Chair (California)
II. Initial Public Comment
III.

Discussion of MTC Special Airlines Sourcing Rule, including sourcing of receipts from airline codeshare revenue and capacity purchase arrangements

Current MTC model Special Airlines Sourcing Rule

MTC Airlines Rule sales factor fraction

Alaska Airlines case (Oregon Tax Court) which addresses the sourcing of codeshare revenue

Sourcing of Airlines revenue – State chart\

Draft Revision of MTC Airlines Rule – 6-7-23

 

 
IV. Solicitation of Additional Topics for Consideration
V. Adjourn

 

 

Documents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At this meeting, we hope that both state and private sector attendees will present information and analysis regarding the sourcing of package delivery and transportation receipts.  Here are specific topics that we hope participants will speak to:

 

 

 

 

 

    1. How does your state currently source package delivery receipts; have there been problems or issues administering your rule?

 

 

    1. What are the pros and cons to sourcing of package delivery services based on miles, location of pick up and/or delivery, the so-called volume method described in the New Mexico UPS decision, or other approaches?

 

 

    1. What sourcing rule best reflects the market for package delivery services?  Is a sourcing rule based on mileage a market-based sourcing rule?

 

 

    1. Does it make sense to source receipts of package delivery companies differently than receipts of other trucking companies; is it possible to distinguish between package delivery companies and other transportation companies?

 

 

    1. Consider the following example:  a package delivery company picks up a package in New York and delivers it to California, traveling through Illinois.  To which of these states should the delivery charge be sourced?  What is the theory or reason supporting your answer?