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Multistate Tax Commission Says States Adopting its P.L. 86-272 Statement Should Also Adopt its Factor Presence Nexus Standard
Multistate Tax Commission 55th Annual Meeting Agenda, Multistate Tax Commission (8/3/22); Resolution No. 2022A – Recommending that States that Adopt the Statement of Information Concerning Practices of the Multistate Tax Commission and Supporting States Under Public Law 86-272 also Adopt the Model Factor Presence Nexus Standard for Business Activity Taxes, Multistate Tax Commission (8/3/22). At its recent annual meeting, the Multistate Tax Commission (MTC) approved a resolution recommending that states adopting the MTC’s revised “Statement of Information Concerning Practices of the Multistate Tax Commission and Supporting States Under Public Law 86-272” (“P.L. 86-272 Statement”) from 2021 that incorporates activities regularly undertaken by businesses today, including selling goods over the internet, also adopt the MTC’s “Model Factor Presence Nexus Standard for Business Activity Taxes” (“Model Factor Presence Standard”) from 2002. In doing so, the MTC explains that it continues to support adoption by states of the Model Factor Presence Standard as a “means of reducing the burdens of multistate tax compliance on businesses with minimal presence in states and also of reducing unnecessary burdens on state revenue departments.” Please contact us with any questions.
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