TAX CODE
SUBTITLE D. COMPACTS AND UNIFORM LAWS
CHAPTER 141. MULTISTATE TAX COMPACT
§ 141.001. ADOPTION OF MULTISTATE TAX COMPACT. The
Multistate Tax Compact is adopted and entered into with all
jurisdictions legally adopting it to read as follows:
MULTISTATE TAX COMPACT
ARTICLE I. PURPOSES
The purposes of this compact are to:
1. Facilitate proper determination of state and local tax
liability of multistate taxpayers, including the equitable
apportionment of tax bases and settlement of apportionment
disputes.
2. Promote uniformity or compatibility in significant
components of tax systems.
3. Facilitate taxpayer convenience and compliance in the
filing of tax returns and in other phases of tax administration.
4. Avoid duplicative taxation.
ARTICLE II. DEFINITIONS
As used in this compact:
1. "State" means a state of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, or any territory or
possession of the United States.
2. "Subdivision" means any governmental unit or special
district of a state.
3. "Taxpayer" means any corporation, partnership, firm,
association, governmental unit or agency or person acting as a
business entity in more than one state.
4. "Income tax" means a tax imposed on or measured by net
income including any tax imposed on or measured by an amount arrived
at by deducting expenses from gross income, one or more forms of
which expenses are not specifically and directly related to
particular transactions.
5. "Capital stock tax" means a tax measured in any way by the
capital of a corporation considered in its entirety.
6. "Gross receipts tax" means a tax, other than a sales tax,
which is imposed on or measured by the gross volume of business, in
terms of gross receipts or in other terms, and in the determination
of which no deduction is allowed which would constitute the tax an
income tax.
7. "Sales tax" means a tax imposed with respect to the
transfer for a consideration of ownership, possession or custody of
tangible personal property or the rendering of services measured by
the price of the tangible personal property transferred or services
rendered and which is required by state or local law to be
separately stated from the sales price by the seller, or which is
customarily separately stated from the sales price, but does not
include a tax imposed exclusively on the sale of a specifically
identified commodity or article or class of commodities or
articles.
8. "Use tax" means a nonrecurring tax, other than a sales tax,
which (a) is imposed on or with respect to the exercise or enjoyment
of any right or power over tangible personal property incident to
the ownership, possession or custody of that property or the
leasing of that property from another including any consumption,
keeping, retention, or other use of tangible personal property and
(b) is complementary to a sales tax.
9. "Tax" means an income tax, capital stock tax, gross
receipts tax, sales tax, use tax, and any other tax which has a
multistate impact, except that the provisions of Articles III, IV
and V of this compact shall apply only to the taxes specifically
designated therein and the provisions of Article IX of this compact
shall apply only in respect to determinations pursuant to Article
IV.
ARTICLE III. ELEMENTS OF INCOME TAX LAWS
Taxpayer Option, State and Local Taxes
1. Any taxpayer subject to an income tax whose income is
subject to apportionment and allocation for tax purposes pursuant
to the laws of a party state or pursuant to the laws of subdivisions
in two or more party states may elect to apportion and allocate his
income in the manner provided by the laws of such state or by the
laws of such states and subdivisions without reference to this
compact, or may elect to apportion and allocate in accordance with
Article IV. This election for any tax year may be made in all party
states or subdivisions thereof or in any one or more of the party
states or subdivisions thereof without reference to the election
made in the others. For the purposes of this paragraph, taxes
imposed by subdivisions shall be considered separately from state
taxes and the apportionment and allocation also may be applied to
the entire tax base. In no instance wherein Article IV is employed
for all subdivisions of a state may the sum of all apportionments
and allocations to subdivisions within a state be greater than the
apportionment and allocation that would be assignable to that state
if the apportionment or allocation were being made with respect to a
state income tax.
Taxpayer Option, Short Form
2. Each party state or any subdivision thereof which imposes
an income tax shall provide by law that any taxpayer required to
file a return, whose only activities within the taxing jurisdiction
consist of sales and do not include owning or renting real estate or
tangible personal property, and whose dollar volume of gross sales
made during the tax year within the state or subdivision, as the
case may be, is not in excess of $100,000 may elect to report and pay
any tax due on the basis of a percentage of such volume, and shall
adopt rates which shall produce a tax which reasonably approximates
the tax otherwise due. The Multistate Tax Commission, not more than
once in five years, may adjust the $100,000 figure in order to
reflect such changes as may occur in the real value of the dollar,
and such adjusted figure, upon adoption by the commission, shall
replace the $100,000 figure specifically provided herein. Each
party state and subdivision thereof may make the same election
available to taxpayers additional to those specified in this
paragraph.
Coverage
3. Nothing in this article relates to the reporting or
payment of any tax other than an income tax.
ARTICLE IV. DIVISION OF INCOME
1. As used in this article, unless the context otherwise
requires:
(a) "Business income" means income arising from
transactions and activity in the regular course of the taxpayer's
trade or business and includes income from tangible and intangible
property if the acquisition, management, and disposition of the
property constitute integral parts of the taxpayer's regular trade
or business operations.
(b) "Commercial domicile" means the principal place
from which the trade or business of the taxpayer is directed or
managed.
(c) "Compensation" means wages, salaries, commissions
and any other form of remuneration paid to employees for personal
services.
(d) "Financial organization" means any bank, trust
company, savings bank, industrial bank, land bank, safe deposit
company, private banker, savings and loan association, credit
union, cooperative bank, small loan company, sales finance company,
investment company, or any type of insurance company.
(e) "Nonbusiness income" means all income other than
business income.
(f) "Public utility" means any business entity (1)
which owns or operates any plant, equipment, property, franchise,
or license for the transmission of communications, transportation
of goods or persons, except by pipe line, or the production,
transmission, sale, delivery, or furnishing of electricity, water
or steam; and (2) whose rates of charges for goods or services have
been established or approved by a federal, state or local
government or governmental agency.
(g) "Sales" means all gross receipts of the taxpayer
not allocated under paragraphs of this article.
(h) "State" means any state of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, any
territory or possession of the United States, and any foreign
country or political subdivision thereof.
(i) "This state" means the state in which the relevant
tax return is filed or, in the case of application of this article
to the apportionment and allocation of income for local tax
purposes, the subdivision or local taxing district in which the
relevant tax return is filed.
2. Any taxpayer having income from business activity which is
taxable both within and without this state, other than activity as a
financial organization or public utility or the rendering of purely
personal services by an individual, shall allocate and apportion
his net income as provided in this article. If a taxpayer has
income from business activity as a public utility but derives the
greater percentage of his income from activities subject to this
article, the taxpayer may elect to allocate and apportion his
entire net income as provided in this article.
3. For purposes of allocation and apportionment of income
under this article, a taxpayer is taxable in another state if (1) in
that state he is subject to a net income tax, a franchise tax
measured by net income, a franchise tax for the privilege of doing
business, or a corporate stock tax, or (2) that state has
jurisdiction to subject the taxpayer to a net income tax regardless
of whether, in fact, the state does or does not.
4. Rents and royalties from real or tangible personal
property, capital gains, interest, dividends or patent or copyright
royalties, to the extent that they constitute nonbusiness income,
shall be allocated as provided in paragraphs 5 through 8 of this
article.
5. (a) Net rents and royalties from real property located in
this state are allocable to this state.
(b) Net rents and royalties from tangible personal
property are allocable to this state: (1) if and to the extent that
the property is utilized in this state, or (2) in their entirety if
the taxpayer's commercial domicile is in this state and the
taxpayer is not organized under the laws of or taxable in the state
in which the property is utilized.
(c) The extent of utilization of tangible personal
property in a state is determined by multiplying the rents and
royalties by a fraction, the numerator of which is the number of
days of physical location of the property in the state during the
rental or royalty period in the taxable year and the denominator of
which is the number of days of physical location of the property
everywhere during all rental or royalty periods in the taxable
year. If the physical location of the property during the rental or
royalty period is unknown or unascertainable by the taxpayer,
tangible personal property is utilized in the state in which the
property was located at the time the rental or royalty payer
obtained possession.
6. (a) Capital gains and losses from sales of real property
located in this state are allocable to this state.
(b) Capital gains and losses from sales of tangible
personal property are allocable to this state if (1) the property
had a situs in this state at the time of the sale, or (2) the
taxpayer's commercial domicile is in this state and the taxpayer is
not taxable in the state in which the property had a situs.
(c) Capital gains and losses from sales of intangible
personal property are allocable to this state if the taxpayer's
commercial domicile is in this state.
7. Interest and dividends are allocable to this state if the
taxpayer's commercial domicile is in this state.
8. (a) Patent and copyright royalties are allocable to this
state: (1) if and to the extent that the patent or copyright is
utilized by the payer in this state, or (2) if and to the extent that
the patent or copyright is utilized by the payer in a state in which
the taxpayer is not taxable and the taxpayer's commercial domicile
is in this state.
(b) A patent is utilized in a state to the extent that
it is employed in production, fabrication, manufacturing, or other
processing in the state or to the extent that a patented product is
produced in the state. If the basis of receipts from patent
royalties does not permit allocation to states or if the accounting
procedures do not reflect states of utilization, the patent is
utilized in the state in which the taxpayer's commercial domicile
is located.
(c) A copyright is utilized in a state to the extent
that printing or other publication originates in the state. If the
basis of receipts from copyright royalties does not permit
allocation to states or if the accounting procedures do not reflect
states of utilization, the copyright is utilized in the state in
which the taxpayer's commercial domicile is located.
9. All business income shall be apportioned to this state by
multiplying the income by a fraction, the numerator of which is the
property factor plus the payroll factor plus the sales factor, and
the denominator of which is three.
10. The property factor is a fraction, the numerator of which
is the average value of the taxpayer's real and tangible personal
property owned or rented and used in this state during the tax
period and the denominator of which is the average value of all the
taxpayer's real and tangible personal property owned or rented and
used during the tax period.
11. Property owned by the taxpayer is valued at its original
cost. Property rented by the taxpayer is valued at eight times the
net annual rental rate. Net annual rental rate is the annual rental
rate paid by the taxpayer less any annual rental rate received by
the taxpayer from subrentals.
12. The average value of property shall be determined by
averaging the values at the beginning and ending of the tax period
but the tax administrator may require the averaging of monthly
values during the tax period if reasonably required to reflect
properly the average value of the taxpayer's property.
13. The payroll factor is a fraction, the numerator of which
is the total amount paid in this state during the tax period by the
taxpayer for compensation and the denominator of which is the total
compensation paid everywhere during the tax period.
14. Compensation is paid in this state if:
(a) the individual's service is performed entirely
within the state;
(b) the individual's service is performed both within
and without the state, but the service performed without the state
is incidental to the individual's service within the state; or
(c) some of the service is performed in the state and
(1) the base of operations or, if there is no base of operations,
the place from which the service is directed or controlled is in the
state, or (2) the base of operations or the place from which the
service is directed or controlled is not in any state in which some
part of the service is performed, but the individual's residence is
in this state.
15. The sales factor is a fraction, the numerator of which is
the total sales of the taxpayer in this state during the tax period,
and the denominator of which is the total sales of the taxpayer
everywhere during the tax period.
16. Sales of tangible personal property are in this state if:
(a) the property is delivered or shipped to a
purchaser, other than the United States government, within this
state regardless of the f. o. b. point or other conditions of the
sale; or
(b) the property is shipped from an office, store,
warehouse, factory, or other place of storage in this state and (1)
the purchaser is the United States government or (2) the taxpayer is
not taxable in the state of the purchaser.
17. Sales, other than sales of tangible personal property,
are in this state if:
(a) the income-producing activity is performed in this
state; or
(b) the income-producing activity is performed both in
and outside this state and a greater proportion of the
income-producing activity is performed in this state than in any
other state, based on costs of performance.
18. If the allocation and apportionment provisions of this
article do not fairly represent the extent of the taxpayer's
business activity in this state, the taxpayer may petition for or
the tax administrator may require, in respect to all or any part of
the taxpayer's business activity, if reasonable:
(a) separate accounting;
(b) the exclusion of any one or more of the factors;
(c) the inclusion of one or more additional factors
which will fairly represent the taxpayer's business activity in
this state; or
(d) the employment of any other method to effectuate
an equitable allocation and apportionment of the taxpayer's income.
ARTICLE V. ELEMENTS OF SALES AND USE TAX LAWS
Tax Credit
1. Each purchaser liable for a use tax on tangible personal
property shall be entitled to full credit for the combined amount or
amounts of legally imposed sales or use taxes paid by him with
respect to the same property to another state and any subdivision
thereof. The credit shall be applied first against the amount of
any use tax due the state, and any unused portion of the credit
shall then be applied against the amount of any use tax due a
subdivision.
Exemption Certificates, Vendors May Rely
2. Whenever a vendor receives and accepts in good faith from a
purchaser a resale or other exemption certificate or other written
evidence of exemption authorized by the appropriate state or
subdivision taxing authority, the vendor shall be relieved of
liability for a sales or use tax with respect to the transaction.
ARTICLE VI. THE COMMISSION
Organization and Management
1. (a) The Multistate Tax Commission is hereby established.
It shall be composed of one "member" from each party state who shall
be the head of the state agency charged with the administration of
the types of taxes to which this compact applies. If there is more
than one such agency the state shall provide by law for the
selection of the commission member from the heads of the relevant
agencies. State law may provide that a member of the commission be
represented by an alternate but only if there is on file with the
commission written notification of the designation and identity of
the alternate. The attorney general of each party state or his
designee, or other counsel if the laws of the party state
specifically provide, shall be entitled to attend the meetings of
the commission, but shall not vote. Such attorneys general,
designees, or other counsel shall receive all notices of meetings
required under paragraph 1(e) of this article.
(b) Each party state shall provide by law for the
selection of representatives from its subdivisions affected by this
compact to consult with the commission member from that state.
(c) Each member shall be entitled to one vote. The
commission shall not act unless a majority of the members are
present, and no action shall be binding unless approved by a
majority of the total number of members.
(d) The commission shall adopt an official seal to be
used as it may provide.
(e) The commission shall hold an annual meeting and
such other regular meetings as its bylaws may provide and such
special meetings as its executive committee may determine. The
commission bylaws shall specify the dates of the annual and any
other regular meetings, and shall provide for the giving of notice
of annual, regular and special meetings. Notices of special
meetings shall include the reasons therefor and an agenda of the
items to be considered.
(f) The commission shall elect annually, from among
its members, a chairman, a vice-chairman and a treasurer. The
commission shall appoint an executive director who shall serve at
its pleasure, and it shall fix his duties and compensation. The
executive director shall be secretary of the commission. The
commission shall make provision for the bonding of such of its
officers and employees as it may deem appropriate.
(g) Irrespective of the civil service, personnel or
other merit system laws of any party state, the executive director
shall appoint or discharge such personnel as may be necessary for
the performance of the functions of the commission and shall fix
their duties and compensation. The commission bylaws shall provide
for personnel policies and programs.
(h) The commission may borrow, accept or contract for
the services of personnel from any state, the United States, or any
other governmental entity.
(i) The commission may accept for any of its purposes
and functions any and all donations and grants of money, equipment,
supplies, materials and services, conditional or otherwise, from
any governmental entity, and may utilize and dispose of the same.
(j) The commission may establish one or more offices
for the transacting of its business.
(k) The commission shall adopt bylaws for the conduct
of its business. The commission shall publish its bylaws in
convenient form, and shall file a copy of the bylaws and any
amendments thereto with the appropriate agency or officer in each
of the party states.
(l) The commission annually shall make to the governor
and legislature of each party state a report covering its
activities for the preceding year. Any donation or grant accepted
by the commission or services borrowed shall be reported in the
annual report of the commission, and shall include the nature,
amount and conditions, if any, of the donation, gift, grant or
services borrowed and the identity of the donor or lender. The
commission may make additional reports as it may deem desirable.
Committees
2. (a) To assist in the conduct of its business when the full
commission is not meeting, the commission shall have an executive
committee of seven members, including the chairman, vice-chairman,
treasurer and four other members elected annually by the
commission. The executive committee, subject to the provisions of
this compact and consistent with the policies of the commission,
shall function as provided in the bylaws of the commission.
(b) The commission may establish advisory and
technical committees, membership on which may include private
persons and public officials, in furthering any of its activities.
Such committees may consider any matter of concern to the
commission, including problems of special interest to any party
state and problems dealing with particular types of taxes.
(c) The commission may establish such additional
committees as its bylaws may provide.
Powers
3. In addition to powers conferred elsewhere in this compact,
the commission shall have power to:
(a) Study state and local tax systems and particular
types of state and local taxes.
(b) Develop and recommend proposals for an increase in
uniformity or compatibility of state and local tax laws with a view
toward encouraging the simplification and improvement of state and
local tax law and administration.
(c) Compile and publish information as in its judgment
would assist the party states in implementation of the compact and
taxpayers in complying with state and local tax laws.
(d) Do all things necessary and incidental to the
administration of its functions pursuant to this compact.
Finance
4. (a) The commission shall submit to the governor or
designated officer or officers of each party state a budget of its
estimated expenditures for such period as may be required by the
laws of that state for presentation to the legislature thereof.
(b) Each of the commission's budgets of estimated
expenditures shall contain specific recommendations of the amounts
to be appropriated by each of the party states. The total amount of
appropriations requested under any such budget shall be apportioned
among the party states as follows: one-tenth in equal shares; and
the remainder in proportion to the amount of revenue collected by
each party state and its subdivisions from income taxes, capital
stock taxes, gross receipts taxes, sales and use taxes. In
determining such amounts, the commission shall employ such
available public sources of information as, in its judgment,
present the most equitable and accurate comparisons among the party
states. Each of the commission's budgets of estimated expenditures
and requests for appropriations shall indicate the sources used in
obtaining information employed in applying the formula contained in
this paragraph.
(c) The commission shall not pledge the credit of any
party state. The commission may meet any of its obligations in
whole or in part with funds available to it under paragraph 1(i) of
this article: provided that the commission takes specific action
setting aside such funds prior to incurring any obligation to be met
in whole or in part in such manner. Except where the commission
makes use of funds available to it under paragraph 1(i), the
commission shall not incur any obligation prior to the allotment of
funds by the party states adequate to meet the same.
(d) The commission shall keep accurate accounts of all
receipts and disbursements. The receipts and disbursements of the
commission shall be subject to the audit and accounting procedures
established under its bylaws. All receipts and disbursements of
funds handled by the commission shall be audited yearly by a
certified or licensed public accountant and the report of the audit
shall be included in and become part of the annual report of the
commission.
(e) The accounts of the commission shall be open at any
reasonable time for inspection by duly constituted officers of the
party states and by any persons authorized by the commission.
(f) Nothing contained in this article shall be
construed to prevent commission compliance with laws relating to
audit or inspection of accounts by or on behalf of any government
contributing to the support of the commission.
ARTICLE VII. UNIFORM REGULATIONS AND FORMS
1. Whenever any two or more party states, or subdivisions of
party states, have uniform or similar provisions of law relating to
an income tax, capital stock tax, gross receipts tax, sales or use
tax, the commission may adopt uniform regulations for any phase of
the administration of such law, including assertion of jurisdiction
to tax, or prescribing uniform tax forms. The commission may also
act with respect to the provisions of Article IV of this compact.
2. Prior to the adoption of any regulation, the commission
shall:
(a) As provided in its bylaws, hold at least one public
hearing on due notice to all affected party states and subdivisions
thereof and to all taxpayers and other persons who have made timely
request of the commission for advance notice of its
regulation-making proceedings.
(b) Afford all affected party states and subdivisions
and interested persons an opportunity to submit relevant written
data and views, which shall be considered fully by the commission.
3. The commission shall submit any regulations adopted by it
to the appropriate officials of all party states and subdivisions
to which they might apply. Each such state and subdivision shall
consider any such regulation for adoption in accordance with its
own laws and procedures.
ARTICLE VIII. INTERSTATE AUDITS
1. This article shall be in force only in those party states
that specifically provide therefor by statute.
2. Any party state or subdivision thereof desiring to make or
participate in an audit of any accounts, books, papers, records or
other documents may request the commission to perform the audit on
its behalf. In responding to the request, the commission shall have
access to and may examine, at any reasonable time, such accounts,
books, papers, records, and other documents and any relevant
property or stock of merchandise. The commission may enter into
agreements with party states or their subdivisions for assistance
in performance of the audit. The commission shall make charges, to
be paid by the state or local government or governments for which it
performs the service, for any audits performed by it in order to
reimburse itself for the actual costs incurred in making the audit.
3. The commission may require the attendance of any person
within the state where it is conducting an audit or part thereof at
a time and place fixed by it within such state for the purpose of
giving testimony with respect to any account, book, paper,
document, other record, property or stock of merchandise being
examined in connection with the audit. If the person is not within
the jurisdiction, he may be required to attend for such purpose at
any time and place fixed by the commission within the state of which
he is a resident: provided that such state has adopted this
article.
4. The commission may apply to any court having power to issue
compulsory process for orders in aid of its powers and
responsibilities pursuant to this article and any and all such
courts shall have jurisdiction to issue such orders. Failure of any
person to obey any such order shall be punishable as contempt of the
issuing court. If the party or subject matter on account of which
the commission seeks an order is within the jurisdiction of the
court to which application is made, such application may be to a
court in the state or subdivision on behalf of which the audit is
being made or a court in the state in which the object of the order
being sought is situated. The provisions of this paragraph apply
only to courts in a state that has adopted this article.
5. The commission may decline to perform any audit requested
if it finds that its available personnel or other resources are
insufficient for the purpose or that, in the terms requested, the
audit is impracticable of satisfactory performance. If the
commission, on the basis of its experience, has reason to believe
that an audit of a particular taxpayer, either at a particular time
or on a particular schedule, would be of interest to a number of
party states or their subdivisions, it may offer to make the audit
or audits, the offer to be contingent on sufficient participation
therein as determined by the commission.
6. Information obtained by any audit pursuant to this article
shall be confidential and available only for tax purposes to party
states, their subdivisions or the United States. Availability of
information shall be in accordance with the laws of the states or
subdivisions on whose account the commission performs the audit,
and only through the appropriate agencies or officers of such
states or subdivisions. Nothing in this article shall be construed
to require any taxpayer to keep records for any period not otherwise
required by law.
7. Other arrangements made or authorized pursuant to law for
cooperative audit by or on behalf of the party states or any of
their subdivisions are not superseded or invalidated by this
article.
8. In no event shall the commission make any charge against a
taxpayer for an audit.
9. As used in this article, "tax," in addition to the meaning
ascribed to it in Article II, means any tax or license fee imposed
in whole or in part for revenue purposes.
ARTICLE IX. ARBITRATION
1. Whenever the commission finds a need for settling disputes
concerning apportionments and allocations by arbitration, it may
adopt a regulation placing this article in effect, notwithstanding
the provisions of Article VII.
2. The commission shall select and maintain an arbitration
panel composed of officers and employees of state and local
governments and private persons who shall be knowledgeable and
experienced in matters of tax law and administration.
3. Whenever a taxpayer who has elected to employ Article IV,
or whenever the laws of the party state or subdivision thereof are
substantially identical with the relevant provisions of Article IV,
the taxpayer, by written notice to the commission and to each party
state or subdivision thereof that would be affected, may secure
arbitration of an apportionment or allocation, if he is
dissatisfied with the final administrative determination of the tax
agency of the state or subdivision with respect thereto on the
ground that it would subject him to double or multiple taxation by
two or more party states or subdivisions thereof. Each party state
and subdivision thereof hereby consents to the arbitration as
provided herein, and agrees to be bound thereby.
4. The arbitration board shall be composed of one person
selected by the taxpayer, one by the agency or agencies involved,
and one member of the commission's arbitration panel. If the
agencies involved are unable to agree on the person to be selected
by them, such person shall be selected by lot from the total
membership of the arbitration panel. The two persons selected for
the board in the manner provided by the foregoing provisions of this
paragraph shall jointly select the third member of the board. If
they are unable to agree on the selection, the third member shall be
selected by lot from among the total membership of the arbitration
panel. No member of a board selected by lot shall be qualified to
serve if he is an officer or employee or is otherwise affiliated
with any party to the arbitration proceeding. Residence within the
jurisdiction of a party to the arbitration proceeding shall not
constitute affiliation within the meaning of this paragraph.
5. The board may sit in any state or subdivision party to the
proceeding, in the state of the taxpayer's incorporation, residence
or domicile, in any state where the taxpayer does business, or in
any place that it finds most appropriate for gaining access to
evidence relevant to the matter before it.
6. The board shall give due notice of the times and places of
its hearings. The parties shall be entitled to be heard, to present
evidence, and to examine and cross-examine witnesses. The board
shall act by majority vote.
7. The board shall have power to administer oaths, take
testimony, subpoena and require the attendance of witnesses and the
production of accounts, books, papers, records, and other
documents, and issue commissions to take testimony. Subpoenas may
be signed by any member of the board. In case of failure to obey a
subpoena, and upon application by the board, any judge of a court of
competent jurisdiction of the state in which the board is sitting or
in which the person to whom the subpoena is directed may be found
may make an order requiring compliance with the subpoena, and the
court may punish failure to obey the order as a contempt. The
provisions of this paragraph apply only in states that have adopted
this article.
8. Unless the parties otherwise agree the expenses and other
costs of the arbitration shall be assessed and allocated among the
parties by the board in such manner as it may determine. The
commission shall fix a schedule of compensation for members of
arbitration boards and of other allowable expenses and costs. No
officer or employee of a state or local government who serves as a
member of a board shall be entitled to compensation therefor unless
he is required on account of his service to forego the regular
compensation attaching to his public employment, but any such board
member shall be entitled to expenses.
9. The board shall determine the disputed apportionment or
allocation and any matters necessary thereto. The determinations
of the board shall be final for purposes of making the apportionment
or allocation, but for no other purpose.
10. The board shall file with the commission and with each tax
agency represented in the proceeding: the determination of the
board; the board's written statement of its reasons therefor; the
record of the board's proceedings; and any other documents
required by the arbitration rules of the commission to be filed.
11. The commission shall publish the determinations of boards
together with the statements of the reasons therefor.
12. The commission shall adopt and publish rules of procedure
and practice and shall file a copy of such rules and of any
amendment thereto with the appropriate agency or officer in each of
the party states.
13. Nothing contained herein shall prevent at any time a
written compromise of any matter or matters in dispute, if
otherwise lawful, by the parties to the arbitration proceeding.
ARTICLE X. ENTRY INTO FORCE AND WITHDRAWAL
1. This compact shall enter into force when enacted into law
by any seven states. Thereafter, this compact shall become
effective as to any other state upon its enactment thereof. The
commission shall arrange for notification of all party states
whenever there is a new enactment of the compact.
2. Any party state may withdraw from this compact by enacting
a statute repealing the same. No withdrawal shall affect any
liability already incurred by or chargeable to a party state prior
to the time of such withdrawal.
3. No proceeding commenced before an arbitration board prior
to the withdrawal of a state and to which the withdrawing state or
any subdivision thereof is a party shall be discontinued or
terminated by the withdrawal, nor shall the board thereby lose
jurisdiction over any of the parties to the proceeding necessary to
make a binding determination therein.
ARTICLE XI. EFFECT ON OTHER LAWS AND JURISDICTION
Nothing in this compact shall be construed to:
(a) Affect the power of any state or subdivision thereof to
fix rates of taxation, except that a party state shall be obligated
to implement Article III 2 of this compact.
(b) Apply to any tax or fixed fee imposed for the
registration of a motor vehicle or any tax on motor fuel, other than
a sales tax; provided that the definition of "tax" in Article VIII
9 may apply for the purposes of that article and the commission's
powers of study and recommendation pursuant to Article VI 3 may
apply.
(c) Withdraw or limit the jurisdiction of any state or local
court or administrative officer or body with respect to any person,
corporation or other entity or subject matter, except to the extent
that such jurisdiction is expressly conferred by or pursuant to
this compact upon another agency or body.
(d) Supersede or limit the jurisdiction of any court of the
United States.
ARTICLE XII. CONSTRUCTION AND SEVERABILITY
This compact shall be liberally construed so as to effectuate
the purposes thereof. The provisions of this compact shall be
severable and if any phrase, clause, sentence or provision of this
compact is declared to be contrary to the constitution of any state
or of the United States or the applicability thereof to any
government, agency, person or circumstance is held invalid, the
validity of the remainder of this compact and the applicability
thereof to any government, agency, person or circumstance shall not
be affected thereby. If this compact shall be held contrary to the
constitution of any state participating therein, the compact shall
remain in full force and effect as to the remaining party states and
in full force and effect as to the state affected as to all
severable matters.
Acts 1981, 67th Leg., p. 1528, ch. 389, § 1, eff. Jan. 1, 1982.
§ 141.002. COMMISSION MEMBER FOR THIS STATE. The
governor shall appoint the comptroller to represent this state on
the Multistate Tax Commission created by Article VI of the compact.
The comptroller may designate a principal deputy or assistant as an
alternate representative on the commission.
Acts 1981, 67th Leg., p. 1540, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1985, 69th Leg., ch. 479, § 208, eff. Sept. 1,
1985; Acts 1989, 71st Leg., ch. 24, § 1, eff. Sept. 1, 1989.
§ 141.003. NOTICE OF MEETINGS. The comptroller shall
file with the secretary of state for publication in the Texas
Register a notice of the general meetings of the Multistate Tax
Commission.
Acts 1981, 67th Leg., p. 1540, ch. 389, § 1, eff. Jan. 1, 1982.
Amended by Acts 1989, 71st Leg., ch. 24, § 1, eff. Sept. 1, 1989.
§ 141.005. INTERSTATE AUDIT ARTICLE ADOPTED. The
provisions of Article VIII of the compact, relating to interstate
audits, are in force with respect to this state.
Acts 1981, 67th Leg., p. 1540, ch. 389, § 1, eff. Jan. 1, 1982.
§ 141.006. REPORT. Before October 1 of each year, the
comptroller shall prepare and file with the presiding officer of
each house of the legislature a complete and detailed report
describing the activities of and accounting for all funds received
and disbursed by the comptroller's office relating to the compact
in the preceding fiscal year. The report must be included as a part
of the annual financial report of the comptroller's office.
Added by Acts 1989, 71st Leg., ch. 24, § 1, eff. Sept. 1, 1989.
