On Thursday, May 8, the Multistate Tax Commission’s Executive Committee met in Washington, DC. During the meeting the Committee voted to advance its amendments to the Multistate Tax Compact’s definition of nonbusiness income, definition of “sales,” factor weighting, and the sourcing of service and intangible revenue. The next step in the Compact’s amendment process—which is identical to the Uniform Division of Income for Tax Purposes Act (UDITPA)—is a “Bylaw VII” survey by the MTC member states. The Committee essentially embraced the MTC’s original proposed amendments and failed to incorporate any of the comments and observations of its Hearing Officer, Professor Richard Pomp.
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