Resolution to Oppose the Multistate Tax Commission’s Effort to Rewrite the Uniform Division of Income for Tax Purposes Act

Resolution to Oppose the Multistate Tax Commission’s Effort to Rewrite the Uniform Division of Income for Tax Purposes Act

Summary

This resolution opposes the effort being undertaken by the Multistate Tax Commission (MTC) to rewrite the Uniform Division of Income for Tax Purposes Act (UDITPA). This resolution recognizes that state tax competition and the fundamental right of states to design their own tax structures to reflect the unique nature of their geographical, cultural, and political climates weighs against the Multistate Tax Commission’s effort to develop a uniform approach to taxing income. Further, this resolution recognizes that Multistate Tax Commission is funded by state appropriated monies and expresses our concern that Multistate Tax Commission would use such funds on an effort that contravenes the competition among states.

Model Resolution

WHEREAS, a uniform tax on corporate income contravenes the goal of state sovereignty, and

WHEREAS, state legislatures have designed their individual state tax structure to meet the needs of their in-state businesses, thereby distinguishing their state from, and competing directly with, other states, and

WHEREAS, state elected officials strive to differentiate their states with legislative enactment of tax provisions that reflect each state’s unique climate for jobs and investment, and

WHEREAS, the effort to rewrite UDITPA is being driven by the Multistate Tax Commission, an organization of tax administrators seeking uniform corporate income tax apportionment rule throughout the states, and

WHEREAS, uniformity of corporate income taxation is not desirable nor practical, and

WHEREAS, the Multistate Tax Commission is a quasi-state organization funded by appropriated taxpayer dollars.

NOW, THEREFORE, BE IT RESOLVED that {insert state} opposes the Multistate Tax Commission effort to rewrite UDITPA.

BE IT FURTHER RESOLVED that {insert state} urges Multistate Tax Commission to discontinue the effort to rewrite UDITPA as a waste of taxpayer funds.

BE IT FURTHER RESOLVED that {insert state} encourages states to review their appropriation of funds for the Multistate Tax Commission budget.

Adopted by the Tax and Fiscal Policy Task Force at the Spring Task Force Summit, May 17, 2008. Approved by the ALEC Board of Directors June 2008.

Amended by ALEC’s Tax and Fiscal Policy Task Force at the States and Nation Policy Summit

 December 5, 2013.

Approved by ALEC’s Board of Directors on January 9, 2014.

 

Keyword Tags: 2013 SNPS, Competitiveness, Federalism, Multistate tax policy, Tax and Fiscal Policy Task Force