State Tax Snapshot: MTC Uniformity Committee Declines to Adopt Pomp’s Recommendations

The Uniformity Committee of the Multistate Tax Commission is recommending its own proposed amendments on apportionment and sourcing provisions over those of MTC hearing officer, Professor Richard Pomp, Bloomberg BNA Daily Tax Report’s Tripp Baltz reported March 14.

After discussing several differences between Pomp's report, which was released in October, and its own draft, committee members approved a motion March 12 expressing a preference for its recommendations, according to the Daily Tax Report.

The MTC Uniformity Committee’s action comes after Professor Pomp told the Daily Tax Report earlier that same week that the business community was eagerly watching the MTC's uniformity committee to see if it would absorb his recommendations. The committee's response, he said, “will signal its willingness to modernize the compact and work with taxpayers.” 

But some doubted that Pomp’s recommendations would have much impact even if they were adopted by the committee.  Jamie Yesnowitz, a principal and state and local tax practice leader in the Washington office of Grant Thornton LLP, told the Daily Tax Report:

I think it is an excellent intellectual exercise for the MTC to [propose amendments] and I think it is an excellent intellectual exercise to see Professor Pomp make comments in the hearing officer's report regarding what should be in Article IV and what should not be But is that going to have an effect on the states? I don't know that it motivates the states so much. I am pessimistic with respect to the compact provisions all of a sudden becoming something the states will want to adopt.

Continue the conversation on LinkedIn: are the MTC’s proposed amendments to UDITPA a worthwhile endeavor?  

By Steven Roll

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