The Continuing Multistate Tax Compact Litigation: What Happens if State Courts Can't Figure It Out?

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

The election provision of the Multistate Tax Compact gained notoriety as a means of lowering corporate income taxes in Compact states when the California Court of Appeal in Gillette determined that the state was bound by Compact provisions. In response to this mid-level court decision, nearly one-quarter of the Compact states have decided to withdraw from the Compact. Grant Thornton LLP partners Brian Murphy and Giles Sutton, principal Jamie Yesnowitz, and directors Dale Busacker and Chuck Jones discuss the impact of Gillette and other Compact litigation on the viability of the Compact and the Multistate Tax Commission, and on taxpayers looking for multistate clarity on Compact issues.