The Multistate Tax Commission’s (MTC) Sales and Use Tax Uniformity Subcommittee is moving forward with a broad sales tax nexus model statute that includes click-through, affiliate and attributional nexus provisions. The Subcommittee also discussed a memorandum related to class actions and false claims acts. The nexus and class action projects are in the educational stage and will be discussed at subsequent MTC meetings. In addition, the MTC’s Uniformity Committee voted to advance its non-income taxpayer project to the MTC Executive Committee for possible adoption as a model act. This proposal is concerning particularly to those entities that are not subject to net income taxes (e.g., insurance companies) and that own interests in pass-through entities.
For additional details, read our legal alert “Update From the MTC’s Winter Committee Meetings: Sales Tax “Associate” Nexus, Class Actions/False Claims Act, and Pass-through Tax Projects.”