States Unbound: Examining the Authority of the Multistate Tax Compact in a Modern, Multijurisdictional Economy

Wayne State University Journal of Business Law, 2018

44 Pages Posted: 3 Sep 2018  

Natasha Varyani

New England Law | Boston

Date Written: August 9, 2016

Abstract

Recent decisions from the high courts of several states have brought attention to a meaningful tension in the goals of the Multistate Tax Compact, an agreement between states. Though the federal government has ruled that no congressional approval is necessary based on the Compact Clause of the U.S. Constitution, this agreement between states has taken its place as an important accord among the vast majority of jurisdictions. Having operated as the most effective solution to the problems identified by Congress in the 1960’s Willis Report, the Compact simultaneously disavows its binding authority and relies on the reliance of States on it to meet its goal of promoting uniformity in state tax administration. With billions of dollars of much needed tax revenue at issue, this article seeks to examine the intricacies of the legal principles applied to this contract among states while understanding its role in the modern economy.

Keywords: State and Local Tax, Multistate Tax Compact, Compact Clause, Tax

Suggested Citation

Varyani, Natasha, States Unbound: Examining the Authority of the Multistate Tax Compact in a Modern, Multijurisdictional Economy (August 9, 2016). Wayne State University Journal of Business Law, 2018. Available at SSRN: https://ssrn.com/abstract=3238172

Natasha Varyani (Contact Author)

New England Law | Boston ( email )

154 Stuart St.
Boston, MA 02116
United States

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