In addition to highlighting the upcoming epic milestone of this temporary/stopgap legislation, this site provides background on this law and links to information about current efforts to update and reform this rule dealing with state taxation of multistate businesses. Information on the UDITPA rewrite is also included since the drafting committee may look into economic nexus.
Is it too early to note this upcoming anniversary? Probably not. The issues surrounding updating and reforming this nexus provision are complex and have already been underway for the past several years. The discussions and debate are likely to last into the 111th Congress and presidency. Perhaps highlighting the 50th anniversary will provide a stimulus for ramping up efforts to resolve the current issues.
| Blog post | PL 86-272 History | Legislative Proposals | Other Proposals |
| Commentary - Business | Commentary - Government | Court Decisions | UDITPA Rewrite Activity |
See the blog post on this topic - please post a comment
The 50th Anniversary of Public Law 86-272, AICPA Corporate Taxation Insider, by Annette Nellen (3/27/08)
House Small Business Committee hearing or 2/14/08 - Business Activity Taxes and their Impact on Small Businesses
Senate Finance Committee hearing of 7/25/06 - How Much Should Borders Matter? Tax Jurisdiction in the New Economy
Congressional Research Service
report (RL32297)
State Corporate Income Taxes: A Description and Analysis
(6/30/06)
Congressman Goodlatte's remarks on introduction of HR 3220
House Judiciary Committee hearing (5/13/04) transcript
Multistate Tax Commission (MTC) Factor Presence Nexus Standard
Information from the federal Advisory Commission on Electronic Commerce - final report (4/00) - see report pages 21-22
Council on State Taxation (COST) policy statement on constitutional jurisdiction to impose business activity taxes
COST-EY study on cost of physical presence standard
COST response to 9/05 NGA report on costs of HR 1956
Tax Foundation Blog Posts 12/12/06 5/9/07
Amicus briefs
COST - Lanco and FIA Card Services (formerly MBNA) cases (5/9/07)
COST - Capital One Bank v. Commissioner of Revenue (2/1/08)
Tax Foundation - FIA Card Services (MBNA)
National Governor's Association (NGA)
Cost estimate report for HR 1956 (9/26/05)
Letter opposing S 2721 (6/1/06)
National Conference of State Legislatures (NCSL)
Floor Alert opposing HR 1956 (7/24/06)
Center on Budget and Policy Priorities (CBPP) - by Michael Mazerov
Counterarguments to those in favor of BAT nexus proposals (6/08)
"Federal "Business Activity Tax Nexus" Legislation: Half of a Two-Pronged Strategy to Gut State Corporate Income Taxes," (11/30/05)
California Budget Project (CBP)
Budget Brief (8/06)
Not Flat - State Income Tax Nexus, AICPA Corporate Taxation Insider, by Annette Nellen, 6/26/08
Tax Commissioner of the State of West Virginia v. MBNA America Bank (S Ct. WV 2006)
Northwestern Cement v. Minn., 358 US 450 (1959)
Wisconsin v. J.C. Penney Co., 311 US 435 (1940)
See the blog on this topic
NCCUSL (National Conference of Commissioners on Uniform State Laws) drafted the Uniform Division of Income for Tax Purposes Act (UDITPA) in 1957. It was last amended in 1966. UDITPA provides rules on apportionment and allocation of multistate business income among states. A committee was appointed to review Section 17 of UDITPA which deals with sourcing of sales that are not of tangible property.
NCCUSL information on the drafting committee to revise UDITPA, background, papers submitted to the committee
List of issues to consider (it includes the possibility of taking on the issue of economic nexus)
First meeting - May 30 & 31, 2008 in Chicago
Background on NCCUSL, UDITPA and the issue raised for which rewriting was requested (FTB paper)
Sutherland, Asbill & Brennan LLP article about a January 2008 MTC meeting, the NCCUSL rewrite process and MTC interests
COST opposition to the project (1/10/08)
This page last revised on July 21, 2008.
Any views and opinions expressed in this page are strictly those of Professor Annette Nellen. The contents of this page have not been reviewed or approved by San José State University