Multistate Tax Compact publications, State and Local Tax

The following PwC publications address the  various developments on taxpayer challenges to Compact member states’ denials of the Article III election.  In addition, these publications address general developments involving the Compact.


MTC and the Fallacy of Its Florida Resolution

September 14, 2015 - In this article, the authors argue that it is fallacious that the Multistate Tax Commission relies on the Florida Resolution as support for its assertion that partial repeal of the Multistate Tax Compact is possible.


From Moorman to Gillette: Uniformity Abandoned by the MTC

Monday, August 17, 2015 - In this viewpoint, Michael Herbert and Bryan Mayster assert that the Multistate Tax Commission’s position regarding a mandatory single-sales-factor formula is inconsistent with its amicus brief filed in Moorman Manufacturing and suggest that the change is driven by a desire to prevent taxpayer refunds and preserve state revenue.


The MTC and Its Joint Audit Program State Not the Obvious

Monday, July 28, 2014 - The Multistate Tax Commission is in the development stages of a transfer pricing audit program and a remote seller single-audit program regarding the Marketplace Fairness Act of 2013. As the Commission considers expanding its current income and sales tax audit programs, it is time to review the Commission’s functions and powers under the state statutes implementing the MultistateTax Compact, as well as its organizational status.


The Show-Me State Shows How It’s Done:
Missouri Is a Model MTC State

Thursday, November 21, 2013 - In this October 21, 2013, Tax Analysts article, David Kennedy, Michael Herbert, and Bryan Mayster examine how Missouri allows taxpayers to make the Multistate Tax Compact equally weighted three-factor apportionment election and how such treatment may serve as a model for other compact states to follow.


The journey of the MTC's joint audit program

Tuesday, October 8, 2013 - In this September 2013 article, Michael Herbert and Bryan Mayster explore the journey of the Multistate Tax Commission's joint audit program in light of the Commission’s early purpose of fighting for uniformity, efficiency, and compatibility of tax laws governing multistate businesses.


D.C. modifies combined reporting, decreases sales tax, and repeals/re-enacts the Compact

Friday, August 9, 2013 - D.C. modifies combined reporting, decreases sales tax, and repeals/re-enacts the Compact


Gillette files Answer Brief on Merits - Submits previously uncovered documents

Monday, July 22, 2013 - Gillette Company and Subsidiaries v. California Franchise Tax Board, numerous documents submitted for the record that were only recently discovered


US Supreme Court sheds light on Compact debate

Thursday, June 27, 2013 - In Tarrant Regional Water District v. Herrmann, US Supreme Court sheds light on Compact debate


Michigan - Trial court rules MTC is a binding compact, apportionment election applicable to business income tax base of the MBT

Tuesday, June 11, 2013 - Trial court rules MTC is a binding compact


The impact of multistate tax compact withdrawals on the joint audit program

Thursday, June 6, 2013 - With the recent state withdrawals from the Multistate Tax Compact, a number of issues arise, including the impact they will have on the joint audit program authorized under Article VIII of the Compact. Will the states that have repealed the Compact but re-enacted all provisions except for Articles III and IV still be considered “members” of the Compact and be able to continue to participate in the joint audit program?


200 Years of interstate cooperation: Could a state tax case be the end

Monday, April 15, 2013 - At issue in Gillette is much more than a state tax matter. The decision will have ramifications for the over 200 existing interstate compacts addressing matters as wide ranging as environmental control to interstate transfers of violent criminals.


Utah repeals Multistate Tax Compact and temporarily reinstates select Compact provisions

Wednesday, April 3, 2013 - On April 1, 2013, Utah Governor Gary Herbert signed Senate Bill 247, which repeals Multistate Tax Compact provisions from Utah law


Michigan - 2011 tax year refund based on MTC election due April 1

Friday, March 8, 2013 - Opportunity exists for a taxpayer to elect to use the equally weighted three-factor formula under the Multistate Tax Compact in lieu of the single sales factor


Michigan: Taxpayers may not elect to apportion income based on MTC three-factor formula

Friday, November 30, 2012 - Michigan Court of Appeals denied a taxpayer's right to elect to apportion its income using the equally weighted three-factor formula


FTB files petition for review of Gillette in the California Supreme Court

Friday, November 16, 2012 - CA FTB petitioned the California Supreme Court for review of the Court of Appeal's decision in Gillette


The Multistate Tax Compact - A Promise Forgotten

Friday, November 9, 2012 - A Promise Forgotten - As the myriad of tax, legal and constitutional issues the Gillette case has created weave their way through the courts and state capitols, interested parties would do well to look back at the reasons for the Compact's adoption. Through this prism, one might find it difficult to reconcile the past history with the present day statements of the FTB and Multistate Tax Commisssion.


Texas Comptroller issues first post-Gillette denial of MTC apportionment election

Friday, October 19, 2012 - Texas Comptroller denied a taxpayer's election to apportion its Texas margin tax using the equally weighted three-factor apportionment formula


California Court of Appeal issues opinion in Gillette rehearing

Thursday, October 4, 2012 - The Court's opinion on rehearing is substantially similar to its original opinion, with a few notable exceptions. Gillette v. Franchise Tax Board.


Oregon provides guidance on MTC apportionment election

Tuesday, October 2, 2012 - Multistate Tax Compact apportionment election is not available in Oregon. However, taxpayers may file a protective claim to secure the right to a refund.


Texas Comptroller denies use of MTC apportionment election

Friday, September 21, 2012 - Texas Comptroller of Public Accounts denied a taxpayer's election to apportion its Texas margin tax using the equally-weighted three factor formula


California - Taxpayers may elect to apportion income under the Multistate Tax Compact's equally weighted three-factor formula

Wednesday, July 25, 2012 - California - Multistate Tax Compact's equally weighted three-factor formula