On April 26, the Multistate Tax Commission (MTC) Income & Franchise Tax Uniformity Subcommittee (Subcommittee) held the first of three scheduled meetings to revise corporate income tax apportionment. Specifically, the MTC is seeking to limit the definition of “sales” under Article IV.1(g) of the Uniform Division of Income for Tax Purposes Act (UDITPA) for purposes of calculating the sales apportionment factor. The effect of the proposed limitation will lead to reducing the sales factor denominator in certain situations—and increasing state apportionable income.
Read the Sutherland SALT Team’s legal alert, “No Sale! MTC Proposes to Limit Receipts Included in the Sales Factor,” and be sure to vote in our poll on the MTC’s proposal.