Multi-State – Public Hearings Regarding MTC’s Income Apportionment Provisions

1/29/2013

SALT Report 2090 – The Multistate Tax Commission has scheduled two hearings that will allow the public to comment on the Commission’s proposed amendments to Article IV of the Multistate Tax Compact which governs the division of income for multistate taxpayers.

The proposed amendments would:

  • Replace the current cost-of-performance sourcing rule for receipts from sales of intangible property and services with market-based sourcing rules,
  • Replace the Compact’s current equally-weighted apportionment formula with the adopting state’s apportionment formula,
  • Replace the definition of “business income” with “apportionable income” and replace the definition of “non-business income” with “non-apportionable income,”
  • Narrow the definition of “gross receipts” included in the receipts factor to exclude treasury function, hedging, and production property-related receipts, and
  • Provide authorization for industry-wide or issue-wide alternative apportionment rules

Hearing Schedule

  • Washington, D.C. – March 28 and 29 from 1:00 to 5:00 p.m.
  • Denver, Colorado – April 4 from 9:00 a.m. to 5:00 p.m.

The second hearing in Denver will only be held if there is sufficient interest. The Commission requests that interested parties rsvp by February 11, 2013. The Commission will announce on February 12, 2013 if they plan to cancel the second hearing.

If you would like to make a presentation you must submit your written comments along with your oral presentation by Monday, March 11, 2013.

For Further Information

Multistate Tax Commission – Notice of Public Hearings

Proposed Amendments

Multistate Tax Compact Article IV Recommended Amendments