Source: http://www.mtc.gov/The-Commission/News
Timestamp: 2019-04-23 03:53:10+00:00

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In the case of Franchise Tax Board v. Hyatt, the Commission, along with the National Governors Association and the National Conference of State Legislatures, have filed an amicus brief in support of the California Franchise Tax Board (FTB), asking that the U.S. Supreme Court overrule the 1979 case of Nevada v. Hall. In Hall, the Court ruled for the first time that states and their governmental agencies do not have sovereign immunity in the courts of their sister states. In Hyatt, an individual, who had moved from California to Nevada, sued the FTB alleging that its auditors had committed torts.
Helen Hecht and Lila Disque of the MTC are featured in the Journal of Multistate Taxation and Incentives. The TCJA treats governmental nonshareholder corporate contributions to capital as taxable income for the first time since the federal income tax was imposed.
Elliott Dubin and former policy research intern Parker Armstrong of the MTC, using data from a number of sources, provides a snapshot of current economic condition of the states; and, a forecast of economic conditions in the near future. Needless to say, the current economic conditions of the states vary widely; and, even short-term predictions of the economy are not always precise.
Georgetown Law and the Multistate Tax Commission (“MTC”) have partnered to provide a 20 percent tuition discount to state and local tax government attorneys and qualified non-attorney tax professionals who matriculate in the 2019-2020 LL.M., MSL, or SALT Certificate Distance Learning programs.
The Paralegal’s Perspective and Tax Law: How do I know if I have nexus?
Michelle Lewis of the MTC Voluntary Disclosure Program is featured in the National Capital Area Paralegal Association (NCAPA) OnPoint newsletter. Towards the end of the year, many businesses start to think about what their tax liabilities are, settling those, and filing tax returns, especially when multiple states are involved. The most common question businesses seem to have is “Do I owe tax in the state?” This question can usually lead into, “Do I have nexus?” Many may also wonder “What is nexus and how do I know if I have it?” These are shared questions that businesses all over the country want answered. The good news is that it is really not that difficult to answer!
The Commission was saddened by news of the death of Eugene F. Corrigan, the MTC’s very first executive director, one month shy of his 91st birthday. In July, he impressed us all with his charm and remembrances while with us in Louisville for our 50th anniversary.
The Multistate Tax Commission’s National Nexus Program (NNP) was created by and is composed of member states. One of the chief stated purposes of the NNP is to encourage and facilitate compliance with nexus law by those engaged in interstate commerce. To further this purpose, the NNP offers a multi-state voluntary disclosure program in which non-filers that have tax liabilities arising from potentially misconstrued nexus laws may, through a confidential and substantially uniform process, and a single point of contact, register and begin paying taxes, while limiting the back periods for which tax liability will be assessed and avoiding penalties.
The Multistate Tax Commission marks its 50th anniversary this summer. In celebration of the Commission’s five decades, we will highlight notable happenings over the years during 2017.
You can read more events highlighted in previous weeks in chronological order using the link below.
Helen Hecht and Lila Disque of the MTC are featured in the Journal of Multistate Taxation and Incentives. Entity-level assessment will require states to consider the implications with respect to nexus, apportionment, and conformity.
On June 30, 2017, the Commission filed an amicus brief with the 11th Circuit Court of Appeals in CSX Transportation, Inc. v. Alabama Dept. of Revenue, et al. supporting Alabama’s contention that it does not violate the 4-R Act when it imposes sales and use tax on rail carriers’ diesel purchases while exempting those who use roads or waterways for transit. Based on its language, the Commission concluded that the 4-R Act does not require the state to spend fuel tax revenues in a specific manner, and that CSX must show harm in order to seek a remedy under the act.
On May 8, 2017, the Multistate Tax Commission filed an amicus brief in the Utah Supreme Court regarding Utah State Tax Commission v. See’s Candies, Inc. The case involved the extent to which a tax administrator may use its discretionary authority to disallow deductions for royalties paid to a related insurance company.
The European Commission is pursuing its plan to introduce a common tax system for companies doing business across the European Union. That system would simplify the tax base calculations for thousands of EU companies, which now must comply with 28 different sets of tax rules throughout the European Union. The proposal would establish a common tax base as a first phase, and in a second phase, would require companies to consolidate their EU operations into a single corporate entity. The companies would then distribute the tax base throughout their operations in the European Union using a formula based on the location of the company’s assets, employees, and sales.
State 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.
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.
People fall behind on their taxes - no one is perfect. However, you have the opportunity to do what’s right for New Hampshire and free yourself from outstanding taxes.
Here’s how: Between now and February 15, 2016, individuals and businesses have the opportunity to pay any outstanding taxes without penalty and with 50% of accrued interest through the New Hampshire Department of Revenue Administration’s (DRA) Tax Amnesty Program.
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.
Looking for Information About Changes to Article IV of the Compact?
At its annual business meeting in July 2014, the Commission adopted, as uniformity recommendations to the states, several amendments to provisions within Article IV of the Compact. Article IV of the Compact is composed of the Uniform Division of Income for Tax Purposes Act (UDITPA). There are a couple of remaining sections of Section 18 and conforming amendments throughout Article IV that are awaiting consideration for approval by the Commission. Once consideration of these remaining items has occurred, a revised model Compact will be posted on this website in addition to the original model drafted in 1966.
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.
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.
On February 4, Scott Pattison, Executive Director of the National Association of State Budget Officers (NASBO), spoke to the Tax Economists Forum, a Washington, DC based group of public finance economists, about the current condition of state finances and the outlook for the future. To briefly summarize Mr. Pattison’s presentation: the current fiscal condition of state governments has improved somewhat when compared to fiscal years 2013 and 2014, but have not yet completely recovered from the Great Recession.
In a case where the MTC had filed an amicus brief supporting the Massachusetts Department of Revenue, the Massachusetts Supreme Judicial Court has found in favor of the Department. The case concerned the proper application of MTC model apportionment rules for financial institutions.
The MTC has filed an amicus brief in the Vodafone case before the Supreme Court in Tennessee. The brief addresses the use of UDITPA Section 18 – equitable apportionment authority. The taxpayer argues that under the statutory cost-of-performance rule, sales of mobile telecommunications services to customers in Tennessee should not be sourced to the state.
The Commission sent a letter to U.S. House Judiciary Committee Chair Bob Goodlatte, R-Va., on his draft hybrid origin-sourcing alternative to the Marketplace Fairness Act. The Chair of the Commission, Alabama Commissioner of Revnue Julie Magee, highlighted significant problems with the draft bill, which hasn't been introduced yet but has been circulated for comments.
The Commission filed an amicus brief with the U.S. Supreme Court in Alabama Dept. of Revenue, et al. v. CSX Transportation, Inc. supporting Alabama’s imposition of sales and use tax on rail carriers’ diesel purchases while exempting those who use roads or waterways for transit, arguing that Alabama’s taxes do not discriminate against railroads under the 4-R Act.
The Federation of Tax Administrators (FTA) is seeking a person who can serve as both general counsel and legislative director. FTA provides tax administration-related services to the tax agencies of the 50 states, D.C, New York City and Philadelphia. Please review the job announcement for minimum requirements and more details about the position.
On August 5, 2014, the Commission filed an amicus brief with the U.S. Supreme Court in Comptroller of Maryland v. Wynne, arguing that Maryland should not be required to provide a credit for taxes paid by residents to other states against the tax those residents owe to Maryland.
On July 30, 2014, the Commission awarded the 2014 Paull Mines Award for Contribution to State Tax Jurisprudence to the late C. A. Daw, chief counsel for the Montana Department of Revenue, who lost a battle with cancer in May of this year. His wife, Mari, was present to accept to the award.
This issue contains three articles written by current MTC staff members and by former policy research interns. The first, “The Überexpert,” is by Harold Jennings, senior audit supervisor, and Robert Schauer, computer audit specialist.
State and Local Taxation (SALT) is an area of practice that offers promising career opportunities in major accounting firms, state and local revenue departments, and law firms.
The National Governors Association (NGA) released Guiding Principles on Federal Tax Reform on March 13, 2013, in preparation for comprehensive federal tax reform in the 113th Congress.
In December, 2012, the Multistate Tax Commission Executive Committee approved a public hearing for proposed amendments to Article IV [UDITPA] of the model Multistate Tax Compact.
On October 21, 2013, the Commission filed its amicus curiae brief on the merits in support of California in Gillette v. California Franchise Tax Board now pending at the California Supreme Court. In the brief, the Commission argues that California law may vary from Compact Articles III.1 and IV because the Multistate Tax Compact is an advisory compact, and Articles III.1 and IV of the Compact are more in the nature of a model uniform law.
The Commission’s 2014 Annual Conference and Committee Meetings are being held on July 28 – 31, 2014 in Albuquerque, New Mexico. Registration is required for those attending the Wednesday, July 30 conference and strongly encouraged for anyone attending any of the various committee meetings during the week.

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