The bill amends the Multistate Tax Compact to enhance the clarity of income apportionment for various taxpayers, including broadcasters, financial institutions, and telecommunications service providers. It introduces a definition for "apportionable income," which refers to income subject to apportionment under the U.S. Constitution and not allocated under state laws. Taxpayers are given the option to apportion their income based on either state laws or the compact's provisions. The bill also establishes criteria for income allocation from sources such as rents, royalties, and capital gains, while modifying the treatment of non-apportionable income and clarifying the factors used to calculate apportionable income, including property, payroll, and sales factors.

Additionally, the bill creates the Multistate Tax Commission, outlining its organization, responsibilities, and powers, including the study of tax systems and the development of uniform regulations. It allows for the exclusion of certain sales from the sales factor denominator when a sale cannot be assigned to a taxable state. The bill also removes a previous requirement related to income-producing activities across multiple states based on incurred costs. New provisions for specific industries will take effect for tax years beginning on or after January 1, 2027, aiming to ensure compliance with the Multistate Tax Compact and promote consistency in tax practices across states.

Statutes affected:
HB0280A, AM HB 280, introduced 01/23/2026: 43.19.010, 43.20.143, 43.20.144, U.S.C, 43.20.145, 43.20.142, 43.20.148, 43.20.146
HB0280B, AM CSHB 280(FIN), introduced 03/27/2026: 43.19.010, 43.20.148, 43.20.149
HB0280C, AM SCS CSHB 280(FIN), introduced 05/18/2026: 43.19.010, 43.20.148, 43.20.149
HB0280Z, AM Enrolled HB 280, introduced 05/20/2026: 43.19.010, 43.20.148, 43.20.149