Uncategorized

Creating Greater Taxpayer Certainty for Multi-State Corporations

Today’s Revenue Laws Committee heard a proposal to develop an expedited rule-making process for issues in which multi-state corporations are seeking clarity around their taxes owed in the state of North Carolina.  The stated goal is to create greater certainty for these taxpayers.  Certainty and clarity that has not been considered achieved despite legislative action last year and a Department of Revenue directive issued this fall.

A very simple and efficient way to generate such certainty which hasn’t been fully considered is mandatory combined reporting.  As we have written about here and here, mandatory combined reporting would require all parent corporations and their subsidiaries to “combine” for state tax purposes to file a joint tax return.  The profits of the combined corporation are then apportioned by formula to each state in which the corporation does business according to the share of total business activity that has taken place in each state.  This is a way to create certainty that merits more discussion, especially since the majority of states with corporate income taxes have adopted mandatory combined reporting.

Check Also

Now is the time to rebalance the state’s unemployment insurance system

New research from The Century Foundation released today ...

Top Stories from NCPW

  • News
  • Commentary

The UNC Board of Governors is holding its last meeting of 2017 Friday, where the latest of its many [...]

Just south of Candler off the Pisgah Highway is a lovely piece of property on Little Piney Mountain [...]

Veteran North Carolina education policy expert Kris Nordstrom has authored a new and vitally importa [...]

When Joni Robbins, a section chief in the N.C. Department of Public Instruction, closes bidding next [...]

“All speech is free, but some speech is more free than others.” This seems to be the motto of the cu [...]

Trumpists prepare to raze another vital common good law It’s hard to keep up these days with the flo [...]

The post That’s how ‘Humbug’ is done appeared first on NC Policy Watch. [...]

The solid citizens of Johnston County, N.C. – in a fateful quirk of geography – for several years ha [...]

Featured | Special Projects

NC Budget 2017
The maze of the NC Budget is complex. Follow the stories to follow the money.
Read more


NC Redistricting 2017
New map, new districts, new lawmakers. Here’s what you need to know about gerrymandering in NC.
Read more