On December 31, 2015, the California Supreme Court closed the book on California’s Multistate Tax Compact election saga, unanimously holding that the Compact is not a binding contract among its members and the State was not bound by its provisions before the State’s repeal of the Compact in 2012. 

Citing the Multistate Tax Commission’s amicus curiae brief as much as the Franchise Tax Board’s brief and largely ignoring the Court of Appeal’s lengthy decision, the Supreme Court concluded that the Compact does not satisfy any of the indicia of binding interstate compacts contemplated by the United States Supreme Court in Northeast Bancorp v. Board of Governors, FRS (1985) 472 U.S. 159.

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