Multistate Tax Commission Finalizes Compact Provision Amendments

On July 30, at its annual meeting, the Multistate Tax Commission (MTC) approved amendments to key provisions of Article IV of the Multistate Tax Compact.¹ Article IV concerns the division of income and incorporates the provisions of the Uniform Division of Income for Tax Purposes Act (UDITPA). These amendments address such topics as apportionment factor weighting, the definition of business income, the adoption of market-based sourcing, the definition of sales, and alternative apportionment. Furthermore, on July 31, the MTC's Executive Committee approved separate proposed amendments concerning the use of alternative apportionment that are being sent to the member states for consideration.