The bill amends the Multistate Tax Compact to improve the apportionment of income for various taxpayers, including broadcasters, financial institutions, and telecommunications service providers. It introduces new definitions for "apportionable income," which now encompasses income that is not allocated under state laws but is apportionable under the U.S. Constitution. Taxpayers are given the option to apportion their income according to the laws of the states where they operate, with a framework established for income allocation based on factors such as property, payroll, and sales. The bill also allows adjustments to the threshold for taxpayers with limited sales activities, enabling them to report taxes based on a percentage of gross sales if they do not exceed $100,000, with the Multistate Tax Commission authorized to adjust this figure every five years.

Additionally, the bill introduces provisions for the allocation and apportionment of sales tax, particularly for situations where a taxpayer is not taxable in a state to which a sale is assigned. Such sales will be excluded from the denominator of the sales factor. The tax administrator is granted authority to adopt necessary regulations for implementation, and a previous requirement regarding income-producing activities is removed. The bill establishes the Multistate Tax Commission, which will consist of representatives from each party state and will be responsible for studying tax systems, recommending uniformity proposals, conducting audits, and adopting uniform regulations. The new provisions will apply to tax years beginning on or after January 1, 2027, with an effective date of January 1, 2027, aimed at clarifying tax obligations and enhancing the tax framework for businesses in these sectors.

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