32.200. Multistate tax compact.
Multistate tax compact.
32.200. The "Multistate Tax Compact" is hereby enacted into law andentered into with all jurisdictions legally joining therein, in the formsubstantially as follows:
MULTISTATE TAX COMPACT
Article I
The purposes of this compact are to:
1. Facilitate proper determination of state and local tax liability ofmultistate taxpayers, including the equitable apportionment of tax bases andsettlement of apportionment disputes.
2. Promote uniformity or compatibility in significant components of taxsystems.
3. Facilitate taxpayer convenience and compliance in the filing of taxreturns and in other phases of tax administration.
4. Avoid duplicative taxation.
Article II
As used in this compact:
1. "State" means a state of the United States, the District of Columbia,the Commonwealth of Puerto Rico, or any territory or possession of the UnitedStates.
2. "Subdivision" means any governmental unit or special district of astate.
3. "Taxpayer" means any corporation, partnership, firm, association,governmental unit or agency or person acting as a business entity in more thanone state.
4. "Income tax" means a tax imposed on or measured by net incomeincluding any tax imposed on or measured by an amount arrived at by deductingexpenses from gross income, one or more forms of which expenses are notspecifically and directly related to particular transactions.
5. "Capital stock tax" means a tax measured in any way by the capital ofa corporation considered in its entirety.
6. "Gross receipts tax" means a tax, other than a sales tax, which isimposed on or measured by the gross volume of business, in terms of grossreceipts or in other terms, and in the determination of which no deduction isallowed which would constitute the tax an income tax.
7. "Sales tax" means a tax imposed with respect to the transfer for aconsideration of ownership, possession or custody of tangible personalproperty or the rendering of services measured by the price of the tangiblepersonal property transferred or services rendered and which is required bystate or local law to be separately stated from the sales price by the seller,or which is customarily separately stated from the sales price, but does notinclude a tax imposed exclusively on the sale of a specifically identifiedcommodity or article or class of commodities or articles.
8. "Use tax" means a nonrecurring tax, other than a sales tax, which
(a) is imposed on or with respect to the exercise or enjoyment of anyright or power over tangible personal property incident to the ownership,possession or custody of that property or the leasing of that property fromanother including any consumption, keeping, retention, or other use oftangible personal property; and
(b) is complementary to a sales tax.
9. "Tax" means an income tax, capital stock tax, gross receipts tax,sales tax, use tax, and any other tax which has a multistate impact, exceptthat the provisions of articles III, IV and V of this compact shall apply onlyto the taxes specifically designated therein and the provisions of article IXof this compact shall apply only in respect to determinations pursuant toarticle IV.
Article III
1. Any taxpayer subject to an income tax whose income is subject toapportionment and allocation for tax purposes pursuant to the laws of a partystate or pursuant to the laws of subdivisions in two or more party states mayelect to apportion and allocate his income in the manner provided by the lawsof such state or by the laws of such states and subdivisions without referenceto this compact, or may elect to apportion and allocate in accordance witharticle IV. This election for any tax year may be made in all party states orsubdivisions thereof or in any one or more of the party states or subdivisionsthereof without reference to the election made in the others. For thepurposes of this paragraph, taxes imposed by subdivisions shall be consideredseparately from state taxes and the apportionment and allocation also may beapplied to the entire tax base. In no instance wherein article IV is employedfor all subdivisions of a state may the sum of all apportionments andallocations to subdivisions within a state be greater than the apportionmentand allocation that would be assignable to that state if the apportionment orallocation were being made with respect to a state income tax.
2. Each party state or any subdivision thereof which imposes an incometax shall provide by law that any taxpayer required to file a return, whoseonly activities within the taxing jurisdiction consist of sales and do notinclude owning or renting real estate or tangible personal property, and whosedollar volume of gross sales made during the tax year within the state orsubdivision, as the case may be, is not in excess of $100,000 may elect toreport and pay any tax due on the basis of a percentage of such volume, andshall adopt rates which shall produce a tax which reasonably approximates thetax otherwise due. The multistate tax commission, not more than once in fiveyears, may adjust the $100,000 figure in order to reflect such changes as mayoccur in the real value of the dollar, and such adjusted figure, upon adoptionby the commission, shall replace the $100,000 figure specifically providedherein. Each party state and subdivision thereof may make the same electionavailable to taxpayers additional to those specified in this paragraph.
3. Nothing in this article relates to the reporting or payment of anytax other than an income tax.
Article IV
1. As used in this article, unless the context otherwise requires:
(1) "Business income" means income arising from transactions andactivity in the regular course of the taxpayer's trade or business andincludes income from tangible and intangible property if the acquisition,management, and disposition of the property constitute integral parts of thetaxpayer's regular trade or business operations.
(2) "Commercial domicile" means the principal place from which the tradeor business of the taxpayer is directed or managed.
(3) "Compensation" means wages, salaries, commissions and any other formof remuneration paid to employees for personal services.
(4) "Financial organization" means any bank, trust company, savingsbank, industrial bank, land bank, safe deposit company, private banker,savings and loan association, credit union, cooperative bank, small loancompany, sales finance company, investment company, or any type of insurancecompany.
(5) "Nonbusiness income" means all income other than business income.
(6) "Public utility" means any business entity
(a) which owns or operates any plant, equipment, property, franchise, orlicense for the transmission of communications, transportation of goods orpersons, except by pipeline, or the production, transmission, sale, delivery,or furnishing of electricity, water or steam; and
(b) whose rates of charges for goods or services have been establishedor approved by a federal, state or local government or governmental agency.
(7) "Sales" means all gross receipts of the taxpayer not allocated underparagraphs of this article.
(8) "State" means any state of the United States, the District ofColumbia, the Commonwealth of Puerto Rico, any territory or possession of theUnited States, and any foreign country or political subdivision thereof.
(9) "This state" means the state in which the relevant tax return isfiled or, in the case of application of this article, to the apportionment andallocation of income for local tax purposes, the subdivision or local taxingdistrict in which the relevant tax return is filed.
2. Any taxpayer having income from business activity which is taxableboth within and without this state, other than activity as a financialorganization or public utility or the rendering of purely personal services byan individual, shall allocate and apportion his net income as provided in thisarticle. If a taxpayer has income from business activity as a public utilitybut derives the greater percentage of his income from activities subject tothis article, the taxpayer may elect to allocate and apportion his entire netincome as provided in this article.
3. For purposes of allocation and apportionment of income under thisarticle, a taxpayer is taxable in another state if
(1) in that state he is subject to a net income tax, a franchise taxmeasured by net income, a franchise tax for the privilege of doing business,or a corporate stock tax; or
(2) that state has jurisdiction to subject the taxpayer to a net incometax regardless of whether, in fact, the state does or does not.
4. Rents and royalties from real or tangible personal property, capitalgains, interest, dividends or patent or copyright royalties, to the extentthat they constitute nonbusiness income, shall be allocated as provided inparagraphs 5 through 8 of this article.
5. (1) Net rents and royalties from real property located in this stateare allocable to this state.
(2) Net rents and royalties from tangible personal property areallocable to this state:
(a) if and to the extent that the property is utilized in this state; or
(b) in their entirety if the taxpayer's commercial domicile is in thisstate and the taxpayer is not organized under the laws of or taxable in thestate in which the property is utilized.
(3) The extent of utilization of tangible personal property in a stateis determined by multiplying the rents and royalties by a fraction, thenumerator of which is the number of days of physical location of the propertyin the state during the rental or royalty period in the taxable year and thedenominator of which is the number of days of physical location of theproperty everywhere during all rental or royalty periods in the taxable year.If the physical location of the property during the rental or royalty periodis unknown or unascertainable by the taxpayer, tangible personal property isutilized in the state in which the property was located at the time the rentalor royalty payer obtained possession.
6. (1) Capital gains and losses from sales of real property located inthis state are allocable to this state.
(2) Capital gains and losses from sales of tangible personal propertyare allocable to this state if
(a) the property had a situs in this state at the time of the sale; or
(b) the taxpayer's commercial domicile is in this state and the taxpayeris not taxable in the state in which the property had a situs.
(3) Capital gains and losses from sales of intangible personal propertyare allocable to this state if the taxpayer's commercial domicile is in thisstate.
7. Interest and dividends are allocable to this state if the taxpayer'scommercial domicile is in this state.
8. (1) Patent and copyright royalties are allocable to this state:
(a) if and to the extent that the patent or copyright is utilized by thepayer in this state; or
(b) if and to the extent that the patent copyright is utilized by thepayer in a state in which the taxpayer is not taxable and the taxpayer'scommercial domicile is in this state.
(2) A patent is utilized in a state to the extent that it is employed inproduction, fabrication, manufacturing, or other processing in the state or tothe extent that a patented product is produced in the state. If the basis ofreceipts from patent royalties does not permit allocation to states or if theaccounting procedures do not reflect states of utilization, the patent isutilized in the state in which the taxpayer's commercial domicile is located.
(3) A copyright is utilized in a state to the extent that printing orother publication originates in the state. If the basis of receipts fromcopyright royalties does not permit allocation to states or if the accountingprocedures do not reflect states of utilization, the copyright is utilized inthe state in which the taxpayer's commercial domicile is located.
9. All business income shall be apportioned to this state by multiplyingthe income by a fraction, the numerator of which is the property factor plusthe payroll factor plus the sales factor, and the denominator of which isthree.
10. The property factor is a fraction, the numerator of which is theaverage value of the taxpayer's real and tangible personal property owned orrented and used in this state during the tax period and the denominator ofwhich is the average value of all the taxpayer's real and tangible personalproperty owned or rented and used during the tax period.
11. Property owned by the taxpayer is valued at its original cost.Property rented by the taxpayer is valued at eight times the net annual rentalrate. Net annual rental rate is the annual rental rate paid by the taxpayerless any annual rental rate received by the taxpayer from subrentals.
12. The average value of property shall be determined by averaging thevalues at the beginning and ending of the tax period but the tax administratormay require the averaging of monthly values during the tax period ifreasonably required to reflect properly the average value of the taxpayer'sproperty.
13. The payroll factor is a fraction, the numerator of which is thetotal amount paid in this state during the tax period by the taxpayer forcompensation and the denominator of which is the total compensation paideverywhere during the tax period.
14. Compensation is paid in this state if:
(1) the individual's service is performed entirely within the state;
(2) the individual's service is performed both within and without thestate, but the service performed without the state is incidental to theindividual's service within the state; or
(3) some of the service is performed in the state; and
(a) the base of operations or, if there is no base of operations, theplace from which the service is directed or controlled is in the state; or
(b) the base of operations or the place from which the service isdirected or controlled is not in any state in which some part of the serviceis performed, but the individual's residence is in this state.
15. The sales factor is a fraction, the numerator of which is the totalsales of the taxpayer in this state during the tax period, and the denominatorof which is the total sales of the taxpayer everywhere during the tax period.
16. Sales of tangible personal property are in this state if:
(1) the property is delivered or shipped to a purchaser, other than theUnited States government, within this state regardless of the f.o.b. point orother conditions of the sale; or
(2) the property is shipped from an office, store, warehouse, factory,or other place of storage in this state; and
(a) the purchaser is the United States government; or
(b) the taxpayer is not taxable in the state of the purchaser.
17. Sales, other than sales of tangible personal property, are in thisstate if:
(1) the income-producing activity is performed in this state; or
(2) the income-producing activity is performed both in and outside thisstate and a greater proportion of the income-producing activity is performedin this state than in any other state, based on costs of performance.
18. If the allocation and apportionment provisions of this article donot fairly represent the extent of the taxpayer's business activity in thisstate, the taxpayer may petition for or the tax administrator may require, inrespect to all or any part of the taxpayer's business activity, if reasonable:
(1) separate accounting;
(2) the exclusion of any one or more of the factors;
(3) the inclusion of one or more additional factors which will fairlyrepresent the taxpayer's business activity in this state; or
(4) the employment of any other method to effectuate an equitableallocation and apportionment of the taxpayer's income.
Article V
1. Each purchaser liable for a use tax on tangible personal propertyshall be entitled to full credit for the combined amount or amounts of legallyimposed sales or use taxes paid by him with respect to the same property toanother state and any subdivision thereof. The credit shall be applied firstagainst the amount of any use tax due the state, and any unused portion of thecredit shall then be applied against the amount of any use tax due asubdivision.
2. Whenever a vendor receives and accepts in good faith from a purchasera resale or other exemption certificate or other written evidence of exemptionauthorized by the appropriate state or subdivision taxing authority, thevendor shall be relieved of liability for a sales or use tax with respect tothe transaction.
Article VI
1. (a) The multistate tax commission is hereby established. It shallbe composed of one "member" from each party state who shall be the head of thestate agency charged with the administration of the types of taxes to whichthis compact applies. If there is more than one such agency the state shallprovide by law for the selection of the commission member from the heads ofthe relevant agencies. State law may provide that a member of the commissionbe represented by an alternate but only if there is on file with thecommission written notification of the designation and identity of thealternate. The attorney general of each party state or his designee, or othercounsel if the laws of the party state specifically provide, shall be entitledto attend the meetings of the commission, but shall not vote. Such attorneysgeneral, designees, or other counsel shall receive all notices of meetingsrequired under paragraph 1 (e) of this article.
(b) Each party state shall provide by law for the selection ofrepresentatives from its subdivisions affected by this compact to consult withthe commission member from that state.
(c) Each member shall be entitled to one vote. The commission shall notact unless a majority of the members are present, and no action shall bebinding unless approved by a majority of the total number of members.
(d) The commission shall adopt an official seal to be used as it mayprovide.
(e) The commission shall hold an annual meeting and such other regularmeetings as its bylaws may provide and such special meetings as its executivecommittee may determine. The commission bylaws shall specify the dates of theannual and any other regular meetings, and shall provide for the giving ofnotice of annual, regular and special meetings. Notices of special meetingsshall include the reasons therefor and an agenda of the items to beconsidered.
(f) The commission shall elect annually, from among its members, achairman, a vice chairman and a treasurer. The commission shall appoint anexecutive director who shall serve at its pleasure, and it shall fix hisduties and compensation. The executive director shall be secretary of thecommission. The commission shall make provision for the bonding of such ofits officers and employees as it may deem appropriate.
(g) Irrespective of the civil service, personnel or other merit systemlaws of any party state, the executive director shall appoint or dischargesuch personnel as may be necessary for the performance of the functions of thecommission and shall fix their duties and compensation. The commission bylawsshall provide for personnel policies and programs.
(h) The commission may borrow, accept or contract for the services ofpersonnel from any state, the United States, or any other governmental entity.
(i) The commission may accept for any of its purposes and functions anyand all donations and grants of money, equipment, supplies, materials andservices, conditional or otherwise, from any governmental entity, and mayutilize and dispose of the same.
(j) The commission may establish one or more offices for the transactingof its business.
(k) The commission shall adopt bylaws for the conduct of its business.The commission shall publish its bylaws in convenient form, and shall file acopy of the bylaws and any amendments thereto with the appropriate agency orofficer in each of the party states.
(l) The commission annually shall make to the governor and legislatureof each party state a report covering its activities for the preceding year.Any donation or grant accepted by the commission or services borrowed shall bereported in the annual report of the commission, and shall include the nature,amount and conditions, if any, of the donation, gift, grant or servicesborrowed and the identity of the donor or lender. The commission may makeadditional reports as it may deem desirable.
2. (a) To assist in the conduct of its business when the fullcommission is not meeting, the commission shall have an executive committee ofseven members, including the chairman, vice chairman, treasurer and four othermembers elected annually by the commission. The executive committee, subjectto the provisions of this compact and consistent with the policies of thecommission, shall function as provided in the bylaws of the commission.
(b) The commission may establish advisory and technical committees,membership on which may include private persons and public officials, infurthering any of its activities. Such committees may consider any matter ofconcern to the commission, including problems of special interest to any partystate and problems dealing with particular types of taxes.
(c) The commission may establish such additional committees as itsbylaws may provide.
3. In addition to powers conferred elsewhere in this compact, thecommission shall have power to:
(a) Study state and local tax systems and particular types of state andlocal taxes.
(b) Develop and recommend proposals for an increase in uniformity orcompatibility of state and local tax laws with a view toward encouraging thesimplification and improvement of state and local tax law and administration.
(c) Compile and publish information as in its judgment would assist theparty states in implementation of the compact and taxpayers in complying withstate and local tax laws.
(d) Do all things necessary and incidental to the administration of itsfunctions pursuant to this compact.
4. (a) The commission shall submit to the governor or designatedofficer or officers of each party state a budget of its estimated expendituresfor such period as may be required by the laws of that state for presentationto the legislature thereof.
(b) Each of the commission's budgets of estimated expenditures shallcontain specific recommendations of the amounts to be appropriated by each ofthe party states. The total amount of appropriations requested under any suchbudget shall be apportioned among the party states as follows: one-tenth inequal shares; and the remainder in proportion to the amount of revenuecollected by each party state and its subdivisions from income taxes, capitalstock taxes, gross receipts taxes, sales and use taxes. In determining suchamounts, the commission shall employ such available public sources ofinformation as, in its judgment, present the most equitable and accuratecomparisons among the party states. Each of the commission's budgets ofestimated expenditures and requests for appropriations shall indicate thesources used in obtaining information employed in applying the formulacontained in this paragraph.
(c) The commission shall not pledge the credit of any party state. Thecommission may meet any of its obligations in whole or in part with fundsavailable to it under paragraph 1 (i) of this article; provided that thecommission takes specific action setting aside such funds prior to incurringany obligation to be met in whole or in part in such manner. Except where thecommission makes use of funds available to it under paragraph 1 (i), thecommission shall not incur any obligation prior to the allotment of funds bythe party states adequate to meet the same.
(d) The commission shall keep accurate accounts of all receipts anddisbursements. The receipts and disbursements of the commission shall besubject to the audit and accounting procedures established under its bylaws.All receipts and disbursements of funds handled by the commission shall beaudited yearly by a certified or licensed public accountant and the report ofthe audit shall be included in and become part of the annual report of thecommission.
(e) The accounts of the commission shall be open at any reasonable timefor inspection by duly constituted officers of the party states and by anypersons authorized by the commission.
(f) Nothing contained in this article shall be construed to preventcommission compliance with laws relating to audit or inspection of accounts byor on behalf of any government contributing to the support of the commission.
Article VII
1. Whenever any two or more party states, or subdivisions of partystates, have uniform or similar provisions of law relating to an income tax,capital stock tax, gross receipts tax, sales or use tax, the commission mayadopt uniform regulations for any phase of the administration of such law,including assertion of jurisdiction to tax, or prescribing uniform tax forms.The commission may also act with respect to the provisions of article IV ofthis compact.
2. Prior to the adoption of any regulation, the commission shall:
(a) As provided in its bylaws, hold at least one public hearing on duenotice to all affected party states and subdivisions thereof and to alltaxpayers and other persons who have made timely request of the commission foradvance notice of its regulation-making proceedings.
(b) Afford all affected party states and subdivisions and interestedpersons an opportunity to submit relevant written data and views, which shallbe considered fully by the commission.
3. The commission shall submit any regulations adopted by it to theappropriate officials of all party states and subdivisions to which they mightapply. Each such state and subdivision shall consider any such regulation foradoption in accordance with its own laws and procedures.
Article VIII*
1. This article shall be in force only in those party states thatspecifically provide therefor by statute.
2. Any party state or subdivision thereof desiring to make orparticipate in an audit of any accounts, books, papers, records or otherdocuments may request the commission to perform the audit on its behalf. Inresponding to the request, the commission shall have access to and mayexamine, at any reasonable time, such accounts, books, papers, records, andother documents and any relevant property or stock of merchandise. Thecommission may enter into agreements with party states or their subdivisionsfor assistance in performance of the audit. The commission shall makecharges, to be paid by the state or local government or governments for whichit performs the service, for any audits performed by it in order to reimburseitself for the actual costs incurred in making the audit.
3. The commission may require the attendance of any person within thestate where it is conducting an audit or part thereof at a time and placefixed by it within such state for the purpose of giving testimony with respectto any account, book, paper, document, other record, property or stock ofmerchandise being examined in connection with the audit. If the person is notwithin the jurisdiction, he may be required to attend for such purpose at anytime and place fixed by the commission within the state of which he is aresident; provided that such state has adopted this article.
4. The commission may apply to any court having power to issuecompulsory process for orders in aid of its powers and responsibilitiespursuant to this article and any and all such courts shall have jurisdictionto issue such orders. Failure of any person to obey any such order shall bepunishable as contempt of the issuing court. If the party or subject matteron account of which the commission seeks an order is within the jurisdictionof the court to which application is made, such application may be to a courtin the state or subdivision on behalf of which the audit is being made or acourt in the state in which the object of the order being sought is situated.The provisions of this paragraph apply only to courts in a state that hasadopted this article.
5. The commission may decline to perform any audit requested if it findsthat its available personnel or other resources are insufficient for thepurpose or that, in the terms requested, the audit is impracticable ofsatisfactory performance. If the commission, on the basis of its experience,has reason to believe that an audit of a particular taxpayer, either at aparticular time or on a particular schedule, would be of interest to a numberof party states or their subdivisions, it may offer to make the audit oraudits, the offer to be contingent on sufficient participation therein asdetermined by the commission.
6. Information obtained by any audit pursuant to this article shall beconfidential and available only for tax purposes to party states, theirsubdivisions or the United States. Availability of information shall be inaccordance with the laws of the states or subdivisions on whose account thecommission performs the audit, and only through the appropriate agencies orofficers of such states or subdivisions. Nothing in this article shall beconstrued to require any taxpayer to keep records for any period not otherwiserequired by law.
7. Other arrangements made or authorized pursuant to law for cooperativeaudit by or on behalf of the party states or any of their subdivisions are notsuperseded or invalidated by this article.
8. In no event shall the commission make any charge against a taxpayerfor an audit.
9. As used in this article, "tax" in addition to the meaning ascribed toit in article II, means any tax or license fee imposed in whole or in part forrevenue purposes.
Article IX
1. Whenever the commission finds a need for settling disputes concerningapportionments and allocations by arbitration, it may adopt a regulationplacing this article in effect, notwithstanding the provisions of article VII.
2. The commission shall select and maintain an arbitration panelcomposed of officers and employees of state and local governments and privatepersons who shall be knowledgeable and experienced in matters of tax law andadministration.
3. Whenever a taxpayer who has elected to employ article IV, or wheneverthe laws of the party state or subdivision thereof are substantially identicalwith the relevant provisions of article IV, the taxpayer, by written notice tothe commission and to each party state or subdivision thereof that would beaffected, may secure arbitration of an apportionment or allocation, if he isdissatisfied with the final administrative determination of the tax agency ofthe state or subdivision with respect thereto on the ground that it wouldsubject him to double or multiple taxation by two or more party states orsubdivisions thereof. Each party state and subdivision thereof herebyconsents to the arbitration as provided herein, and agrees to be boundthereby.
4. The arbitration board shall be composed of one person selected by thetaxpayer, one by the agency or agencies involved, and one member of thecommission's arbitration panel. If the agencies involved are unable to agreeon the person to be selected by them, such person shall be selected by lotfrom the total membership of the arbitration panel. The two persons selectedfor the board in the manner provided by the foregoing provisions of thisparagraph shall jointly select the third member of the board. If they areunable to agree on the selection, the third member shall be selected by lotfrom among the total membership of the arbitration panel. No member of aboard selected by lot shall be qualified to serve if he is an officer oremployee or is otherwise affiliated with any party to the arbitrationproceeding. Residence within the jurisdiction of a party to the arbitrationproceeding shall not constitute affiliation within the meaning of thisparagraph.
5. The board may sit in any state or subdivision party to theproceeding, in the state of the taxpayer's incorporation, residence ordomicile, in any state where the taxpayer does business, or in any place thatit finds most appropriate for gaining access to evidence relevant to thematter before it.
6. The board shall give due notice of the times and places of itshearings. The parties shall be entitled to be heard, to present evidence, andto examine and cross-examine witnesses. The board shall act by majority vote.
7. The board shall have power to administer oaths, take testimony,subpoena and require the attendance of witnesses and the production ofaccounts, books, papers, records, and other documents, and issue commissionsto take testimony. Subpoenas may be signed by any member of the board. Incase of failure to obey a subpoena, and upon application by the board, anyjudge of a court of competent jurisdiction of the state in which the board issitting or in which the person to whom the subpoena is directed may be foundmay make an order requiring compliance with the subpoena, and the court maypunish failure to obey the order as a contempt. The provisions of thisparagraph apply only in states that have adopted this article.
8. Unless the parties otherwise agree the expenses and other costs ofthe arbitration shall be assessed and allocated among the parties by the boardin such manner as it may determine. The commission shall fix a schedule ofcompensation for members of arbitration boards and of other allowable expensesand costs. No officer or employee of a state or local government who servesas a member of a board shall be entitled to compensation therefor unless he isrequired on account of his service to forego the regular compensationattaching to his public employment, but any such board member shall beentitled to expenses.
9. The board shall determine the disputed apportionment or allocationand any matters necessary thereto. The determinations of the board shall befinal for purposes of making the apportionment or allocation, but for no otherpurpose.
10. The board shall file with the commission and with each tax agencyrepresented in the proceeding: the determination of the board; the board'swritten statement of its reasons therefor; the record of the board'sproceedings; and any other documents required by the arbitration rules of thecommission to be filed.
11. The commission shall publish the determinations of boards togetherwith the statements of the reasons therefor.
12. The commission shall adopt and publish rules of procedure andpractice and shall file a copy of such rules and of any amendment thereto withthe appropriate agency or officer in each of the party states.
13. Nothing contained herein shall prevent at any time a writtencompromise of any matter or matters in dispute, if otherwise lawful, by theparties to the arbitration proceeding.
Article X
1. This compact shall enter into force when enacted into law by anyseven states. Thereafter, this compact shall become effective as to any otherstate upon its enactment thereof. The commission shall arrange fornotification of all party states whenever there is a new enactment of thecompact.
2. Any party state may withdraw from this compact by enacting a statuterepealing the same. No withdrawal shall affect any liability already incurredby or chargeable to a party state prior to the time of such withdrawal.
3. No proceeding commenced before an arbitration board prior to thewithdrawal of a state and to which the withdrawing state or any subdivisionthereof is a party shall be discontinued or terminated by the withdrawal, norshall the board thereby lose jurisdiction over any of the parties to theproceeding necessary to make a binding determination therein.
Article XI
Nothing in this compact shall be construed to:
(a) Affect the power of any state or subdivision thereof to fix rates oftaxation, except that a party state shall be obligated to implement articleIII 2 of this compact.
(b) Apply to any tax or fixed fee imposed for the registration of amotor vehicle or any tax on motor fuel, other than a sales tax; provided thatthe definition of "tax" in article VIII 9 may apply for the purposes of thatarticle and the commission's powers of study and recommendation pursuant toarticle VI 3 may apply.
(c) Withdraw or limit the jurisdiction of any state or local court oradministrative officer or body with respect to any person, corporation orother entity or subject matter, except to the extent that such jurisdiction isexpressly conferred by or pursuant to this compact upon another agency orbody.
(d) Supersede or limit the jurisdiction of any court of the UnitedStates.
Article XII
This compact shall be liberally construed so as to effectuate thepurposes thereof. The provisions of this compact shall be severable and ifany phrase, clause, sentence or provision of this compact is declared to becontrary to the constitution of any state or of the United States or theapplicability thereof to any government, agency, person or circumstance isheld invalid, the validity of the remainder of this compact and theapplicability thereof to any government, agency, person or circumstance shallnot be affected thereby. If this compact shall be held contrary to theconstitution of any state participating therein, the compact shall remain infull force and effect as to the remaining party states and in full force andeffect as to the state affected as to all severable matters.
(L. 1967 p. 102 § 1)*Article VIII adopted in this state, RSMo 32.205