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Reforming The State Corporate Income Tax: A Market State Approach To The Sourcing Of Services, John A. Swain
Reforming The State Corporate Income Tax: A Market State Approach To The Sourcing Of Services, John A. Swain
John A Swain
The state corporate income tax is about to undergo its most serious re-examination in over 50 years. The National Conference of Commissioners on Uniform State Laws has initiated a review of the Uniform Division of Income for Tax Purposes Act (UDITPA), which either has been adopted by most states or has been used as a model for similar statutes. UDIPTA employs a three-factor formula to apportion the income of multistate businesses. The property and payroll factors reflect the contribution of the production states, while the sales factor is intended to reflect the contribution of the market states. A weakness of …