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

April 2013
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200 years of interstate cooperation: Could a state tax case be the end?

At a glance

In this Viewpoint article published April 15, 2013 in State Tax Notes, Michael Herbert and Bryan Mayster of PwC's State and Local Tax practice examine Gillette v FTB , a state tax case with great significance for how interstate agreements are interpreted.

Drawing on analogies to compacts in other areas of state law, they point out that this decision will have ramifications for the over 200 existing interstate compacts, impacting matters as wide-ranging as environmental control of Lake Tahoe to interstate transfers of violent criminals.

Since the position advanced by the FTB and Multistate Tax Commission in Gillette could have a significant effect on many of today's interstate compacts if adopted, Herbert and Mayster provide a background on the broad array of interstate issues addressed by such agreements. The authors argue that given the significance of these agreements, as well as the diversity of problems and challenges they address, any decision in Gillette affecting the Multistate Tax Compact will reach well beyond the state tax realm.