In a rare special meeting on February 24, 2017, the Multistate Tax Commission (MTC) adopted amendments to the MTC’s Model General Allocation and Apportionment Regulations that it has worked on since 2014. Among other things, the 94-page Model Regulations:
- Provide a new section related to market-based sourcing of receipts from the sale of services and intangibles.
- Clarify the definition of “apportionable income,” narrow the definition of “receipts” and remove the requirement for equal weighting of the three-factor apportionment formula.
- Eliminate the portion of Section 18 related to the receipts factor along with the corresponding examples.