Income/Franchise:
Multistate Tax Commission Adopts Changes to P.L. 86-272 Statement and Combined Reporting Model Statute

Multistate Tax Commission 54th Annual Business Meeting Agenda, Multistate Tax Commission (8/4/21); Revised Statement on PL 86-272, Multistate Tax Commission (8/4/21); Resolution on Revisions to PL 86-272 Statement, Multistate Tax Commission (8/4/21); Model Statute for Combined Filing – Finnigan, Multistate Tax Commission (8/4/21); Resolution on Finnigan Combined Filing Model, Multistate Tax Commission (8/4/21). At its recent annual meeting, the Multistate Tax Commission (MTC) approved revisions to its:

1. “Statement of Information Concerning Practices of Multistate Tax Commission and Signatory States Under Public Law 86-272” (“P.L. 86-272 Statement”) as part of an effort to incorporate activities “regularly undertaken by businesses today, including selling goods over the Internet,” and
2. “Model Statute for Combined Reporting” that include a “Finnigan” alternative to the existing “Joyce” approach.

Amendments to the P.L. 86-272 Statement interpret “business activity” to include some interactive internet activity and, according to the underlying MTC Uniformity Committee’s “P.L. 86-272 Statement of Information Work Group,” provide a framework to determine whether P.L. 86-272 protects non-solicitation business activities conducted via the internet. The P.L. 86-272 Statement revisions add several factual scenarios indicating, in each case, whether the business activity is or is not protected by P.L. 86-272, as well as update referenced case law – including inserting Wayfair. Please contact us with any questions.