California repeals MTC election effective immediately


"Hours after budget trailer bill S.B. 1015, which repeals all provisions in California law related to the Multistate Tax Compact, passed both Houses of the California legislature on June 27th, Gov. Jerry Brown signed the bill into law. Effective immediately, the MTC is repealed in California.

As previously reported, S.B. 1015 did not pass either house with a 2/3 vote. The absence of such a vote in either house may render the legislation susceptible to challenge under Proposition 26, which requires revenue-raising bills to pass each legislative house by a 2/3 vote.

Please view the following link to read our June 15, 2012 publication summarizing California's recent apportionment issues and developments, including S.B. 1015 and other proposed legislation repealing MTC provision and the potential impact of the upcoming Court of Appeals Gillette decision.

Needless to say, it is unlikely this legislation will settle the MTC issue in California. PwC will continue to monitor all developments in this area."

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