Resolution to Oppose NCCUSL Effort to Rewrite the Uniform Division of Income for Tax Purposes Act
Summary
This resolution opposes the effort being undertaken by the National Conference of Commissioners on Uniform State Laws (NCCUSL) 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 NCCUSL effort to develop a uniform approach to taxing income. Further, this resolution recognizes that NCCUSL is funded by state appropriated monies and expresses our concern that NCCUSL would use such funds on an effort that contravenes the competition among states.
Model Resolution
WHEREAS, a uniform tax on corporate income contravenes ALEC’s mission to support 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 NCCUSL effort to rewrite UDITPA is being driven by the Multistate Tax Compact, 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, thus failing to meet NCCUSL’s own criteria for drafting a uniform act, and
WHEREAS, NCCUSL is a quasi-state organization funded by appropriated taxpayer dollars.
NOW, THEREFORE, BE IT RESOLVED that {insert state} opposes the NCCUSL effort to rewrite UDITPA.
BE IT FURTHER RESOLVED that {insert state} urges NCCUSL 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 NCCUSL budget.
Approved by the ALEC Board of Directors June 2008.