59-1-801 - Purpose of compact -- Definitions -- Elements of income tax laws -- Allocation and apportionment of income -- Elements of sales and use tax laws -- The commission -- Uniform regulations and
59-1-801. Purpose of compact -- Definitions -- Elements of income tax laws --Allocation and apportionment of income -- Elements of sales and use tax laws -- Thecommission -- Uniform regulations and forms -- Interstate audits -- Arbitration -- Entryinto force and withdrawal -- Effect on other laws and jurisdiction -- Construction andseverability.
The "Multistate Tax Compact" is hereby enacted into law and entered into with alljurisdictions legally joining therein, in the form substantially as follows:
The purposes of this compact are to:
1. Facilitate proper determination of state and local tax liability of multistate taxpayers,including the equitable apportionment of tax bases and settlement of apportionment disputes.
2. Promote uniformity or compatibility in significant components of tax systems.
3. Facilitate taxpayer convenience and compliance in the filing of tax returns and in otherphases of tax administration.
4. Avoid duplicative taxation.
As used in this compact:
1. "State" means a state of the United States, the District of Columbia, theCommonwealth of Puerto Rico, or any territory or possession of the United States.
2. "Subdivision" means any governmental unit or special district of a state.
3. "Taxpayer" means any corporation, partnership, firm, association, governmental unitor agency, or person acting as a business entity in more than one state.
4. "Income tax" means a tax imposed on or measured by net income including any taximposed on or measured by an amount arrived at by deducting expenses from gross income, oneor more forms of which expenses are not specifically and directly related to particulartransactions.
5. "Capital stock tax" means a tax measured in any way by the capital of a corporationconsidered in its entirety.
6. "Gross receipts tax" means a tax, other than a sales tax, which is imposed on ormeasured by the gross volume of business, in terms of gross receipts or in other terms, and in thedetermination of which no deduction is allowed which would constitute the tax an income tax.
7. "Sales tax" means a tax imposed with respect to the transfer for a consideration ofownership, possession, or custody of tangible personal property or the rendering of servicesmeasured by the price of the tangible personal property transferred or services rendered andwhich is required by state or local law to be separately stated from the sales price by the seller, orwhich is customarily separately stated from the sales price, but does not include a tax imposedexclusively on the sale of a specifically identified commodity or article or class of commoditiesor articles.
8. "Use tax" means a nonrecurring tax, other than a sales tax, which (a) is imposed on orwith respect to the exercise or enjoyment of any right or power over tangible personal propertyincident to the ownership, possession, or custody of that property or the leasing of that propertyfrom another including any consumption, keeping, retention, or other use of tangible personalproperty, and (b) is complementary to a sales tax.
9. "Tax" means an income tax, capital stock tax, gross receipts tax, sales tax, use tax, andany other tax which has a multistate impact, except that the provisions of Articles III, IV, and V
of this compact shall apply only to the taxes specifically designated therein and the provisions ofArticle IX of this compact shall apply only in respect to determinations pursuant to Article IV.
1. Any taxpayer subject to an income tax whose income is subject to apportionment andallocation for tax purposes pursuant to the laws of a party state or pursuant to the laws ofsubdivisions in two or more party states may elect to apportion and allocate his income in themanner provided by the laws of such state or by the laws of such states and subdivisions withoutreference to this compact, or may elect to apportion and allocate in accordance with Article IV. This election for any tax year may be made in all party states or subdivisions thereof or in anyone or more of the party states or subdivisions thereof without reference to the election made inthe others. For the purposes of this paragraph, taxes imposed by subdivisions shall be consideredseparately from state taxes and the apportionment and allocation also may be applied to the entiretax base. In no instance wherein Article IV is employed for all subdivisions of a state may thesum of all apportionments and allocations to subdivisions within a state be greater than theapportionment and 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 income tax shall provideby law that any taxpayer required to file a return, whose only activities within the taxingjurisdiction consist of sales and do not include owning or renting real estate or tangible personalproperty, and whose dollar 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 to report and pay any taxdue on the basis of a percentage of such volume, and shall adopt rates which shall produce a taxwhich reasonably approximates the tax otherwise due. The Multistate Tax Commission, notmore than once in five years, may adjust the $100,000 figure in order to reflect such changes asmay occur in the real value of the dollar, and such adjusted figure, upon the adoption by thecommission, shall replace the $100,000 figure specifically provided herein. Each party state andsubdivision thereof may make the same election available to taxpayers additional to thosespecified in this paragraph.
3. Nothing in this article relates to the reporting or payment of any tax other than anincome tax.
1. As used in this article, unless the context otherwise requires:
(a) "Business income" means income arising from transactions and activity in the regularcourse of the taxpayer's trade or business and includes income from tangible and intangibleproperty if the acquisition, management, and disposition of the property constitute integral partsof the taxpayer's regular trade or business operations.
(b) "Commercial domicile" means the principal place from which the trade or business ofthe taxpayer is directed or managed.
(c) "Compensation" means wages, salaries, commissions and any other form ofremuneration paid to employees for personal services.
(d) "Financial organization" means any bank, trust company, savings bank, industrial
bank, land bank, safe deposit company, private banker, savings and loan association, creditunion, cooperative bank, small loan company, sales finance company, investment company, orany type of insurance company.
(e) "Nonbusiness income" means all income other than business income.
(f) "Public utility" means any business entity (1) which owns or operates any plant,equipment, property, franchise, or license for the transmission of communications, transportationof goods or persons, except by pipeline, or the production, transmission, sale, delivery, orfurnishing of electricity, water, or steam, and (2) whose rates of charges for goods or serviceshave been established or approved by a federal, state, or local government or governmentalagency.
(g) "Sales" means all gross receipts of the taxpayer not allocated under paragraphs of thisarticle.
(h) "State" means any state of the United States, the District of Columbia, theCommonwealth of Puerto Rico, any territory or possession of the United States, and any foreigncountry or political subdivision thereof.
(i) "This state" means the state in which the relevant tax return is filed or, in the case ofapplication of this article to the apportionment and allocation of income for local tax purposes,the subdivision or local taxing district in which the relevant tax return is filed.
2. Any taxpayer having income from business activity which is taxable both within andwithout this state, shall allocate and apportion his net income as provided in this article.
3. For purposes of allocation and apportionment of income under this article, a taxpayeris 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 stocktax, or (2) that state has jurisdiction to subject the taxpayer to a net income tax regardless ofwhether, in fact, the state does or does not.
4. Rents and royalties from real or tangible personal property, capital gains, interests,dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income,shall be allocated as provided in paragraphs 5 through 8 of this article.
5. (a) Net rents and royalties from real property located in this state are allocable to thisstate.
(b) Net rents and royalties from tangible personal property are allocable to this state (1) ifand to the extent that the property is utilized in this state, or (2) in their entirety if the taxpayer'scommercial domicile is in this state and the taxpayer is not organized under the laws of ortaxable in the state in which the property is utilized.
(c) The extent of utilization of tangible personal property in a state is determined bymultiplying the rents and royalties by a fraction, the numerator of which is the number of days ofphysical location of the property in the state during the rental or royalty period in the taxable yearand the denominator of which is the number of days of physical location of the propertyeverywhere during all rental or royalty periods in the taxable year. If the physical location of theproperty during the rental or royalty period is unknown or unascertainable by the taxpayer,tangible personal property is utilized in the state in which the property was located at the time therental or royalty payer obtained possession.
6. (a) Capital gains and losses from sales of real property located in this state areallocable to this state.
(b) Capital gains and losses from sales of tangible personal property are allocable to this
state if (1) the property had a situs in this state at the time of the sale, or (2) the taxpayer'scommercial domicile is in this state and the taxpayer is not taxable in the state in which theproperty had a situs.
(c) Capital gains and losses from sales of intangible personal property are allocable tothis state if the taxpayer's commercial domicile is in this state.
7. Interest and dividends are allocable to this state if the taxpayer's commercial domicileis in this state.
8. (a) Patent and copyright royalties are allocable to this state (1) if and to the extent thatthe patent or copyright is utilized by the payer in this state, or (2) if and to the extent that thepatent or copyright is utilized by the payer in a state in which the taxpayer is not taxable and thetaxpayer's commercial domicile is in this state.
(b) A patent is utilized in a state to the extent that it is employed in production,fabrication, manufacturing, or other processing in the state or to the extent that a patented productis produced in the state. If the basis of receipts from patent royalties does not permit allocation tostates or if the accounting procedures do not reflect states of utilization, the patent is utilized inthe state in which the taxpayer's commercial domicile is located.
(c) A copyright is utilized in a state to the extent that printing or other publicationoriginates in the state. If the basis of receipts from copyright royalties does not permit allocationto states or if the accounting procedures do not reflect states of utilization, the copyright isutilized in the state in which the taxpayer's commercial domicile is located.
9. All business income shall be apportioned to this state by multiplying the income by afraction determined in accordance with Section 59-7-311.
10. The property factor is a fraction, the numerator of which is the average value of thetaxpayer's real and tangible personal property owned or rented and used in this state during thetax period and the denominator of which is the average value of all the taxpayer's real andtangible personal property owned or rented and used during the tax period.
11. Property owned by the taxpayer is valued at its original cost. Property rented by thetaxpayer is valued at eight times the net annual rental rate. Net annual rental rate is the annualrental rate paid by the taxpayer less any annual rental rate received by the taxpayer fromsubrentals.
12. The average value of property shall be determined by averaging the values at thebeginning and ending of the tax period but the tax administrator may require the averaging ofmonthly values during the tax period if reasonably required to reflect properly the average valueof the taxpayer's property.
13. The payroll factor is a fraction, the numerator of which is the total amount paid inthis state during the tax period by the taxpayer for compensation and the denominator of which isthe total compensation paid everywhere during the tax period.
14. Compensation is paid in this state if:
(a) the individual's service is performed entirely within the state;
(b) the individual's service is performed both within and without the state, but the serviceperformed without the state is incidental to the individual's service within the state; or
(c) some of the service is performed in the state and (1) the base of operations or, if thereis no base of operations, the place from which the service is directed or controlled is in the state,or (2) the base of operations or the place from which the service is directed or controlled is not inany state in which some part of the service is performed, but the individual's residence is in this
state.
15. The sales factor is a fraction, the numerator of which is the total sales of the taxpayerin this state during the tax period and the denominator of which is the total sales of the taxpayereverywhere during the tax period.
16. Sales of tangible personal property are in this state if:
(a) the property is delivered or shipped to a purchaser, other than the United Statesgovernment, within this state regardless of the f.o.b. point or other conditions of the sale; or
(b) the property is shipped from an office, store, warehouse, factory, or other place ofstorage in this state and (1) the purchaser is the United States government, or (2) the taxpayer isnot taxable in the state of the purchaser.
17. Sales, other than sales of tangible personal property, are in this state if:
(a) the income-producing activity is performed in this state; or
(b) the income-producing activity is performed both in and outside this state and agreater proportion of the income-producing activity is performed in this state than in any otherstate, based on costs of performance.
18. If the allocation and apportionment provisions of this article do not fairly representthe extent of the taxpayer's business activity in this state, the taxpayer may petition for or the taxadministrator may require, in respect to all or any part of the taxpayer's business activity, ifreasonable:
(a) separate accounting;
(b) the exclusion of any one or more of the factors;
(c) the inclusion of one or more additional factors which will fairly represent thetaxpayer's business activity in this state; or
(d) the employment of any other method to effectuate an equitable allocation andapportionment of the taxpayer's income.
1. Each purchaser liable for a use tax on tangible personal property shall be entitled tofull credit for the combined amount or amounts of legally imposed sales or use taxes paid by himwith respect to the same property to another state and any subdivision thereof. The credit shallbe applied first against 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 a subdivision.
2. Whenever a vendor receives and accepts in good faith from a purchaser a resale orother exemption certificate or other written evidence of exemption authorized by the appropriatestate or subdivision taxing authority, the vendor shall be relieved of liability for a sales or use taxwith respect to the transaction.
1. (a) The Multistate Tax Commission is hereby established. It shall be composed of one"member" from each party state who shall be the head of the state agency charged with theadministration of the types of taxes to which this compact applies. If there is more than one suchagency the state shall provide by law for the selection of the commission member from the headsof the relevant agencies. State law may provide that a member of the commission be representedby an alternate but only if there is on file with the commission written notification of the
designation and identity of the alternate. The attorney general of each party state or his designee,or other counsel if the laws of the party state specifically provide, shall be entitled to attend themeetings of the commission, but shall not vote. Such attorneys general, designees, or othercounsel shall receive all notices of meetings required under paragraph 1 (e) of this article.
(b) Each party state shall provide by law for the selection of representatives from itssubdivisions affected by this compact to consult with the commission member from that state.
(c) Each member shall be entitled to one vote. The commission shall not act unless amajority of the members are present, and no action shall be binding unless approved by amajority of the total number of members.
(d) The commission shall adopt an official seal to be used as it may provide.
(e) The commission shall hold an annual meeting and such other regular meetings as itsbylaws may provide and such special meetings as its executive committee may determine. Thecommission bylaws shall specify the dates of the annual and any other regular meetings, and shallprovide for the giving of notice of annual, regular, and special meetings. Notices of specialmeetings shall include the reasons therefor and an agenda of the items to be considered.
(f) The commission shall elect annually, from among its members, a chairman, avice-chairman, and a treasurer. The commission shall appoint an executive director who shallserve at its pleasure, and it shall fix his duties and compensation. The executive director shall besecretary of the commission. 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 system laws of any partystate, the executive director shall appoint or discharge such personnel as may be necessary for theperformance of the functions of the commission and shall fix their duties and compensation. Thecommission bylaws shall provide for personnel policies and programs.
(h) The commission may borrow, accept, or contract for the services of personnel fromany state, the United States, or any other governmental entity.
(i) The commission may accept for any of its purposes and functions any and alldonations and grants of money, equipment, supplies, materials, and services, conditional orotherwise, from any governmental entity, and may utilize and dispose of the same.
(j) The commission may establish one or more offices for the transacting of its business.
(k) The commission shall adopt bylaws for the conduct of its business. The commissionshall publish its bylaws in convenient form, and shall file a copy of the bylaws and anyamendments thereto with the appropriate agency or officer in each of the party states.
(l) The commission annually shall make to the governor and legislature of each partystate a report covering its activities for the preceding year. Any donation or grant accepted by thecommission or services borrowed shall be reported in the annual report of the commission, andshall 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 make additional reportsas it may deem desirable.
2. (a) To assist in the conduct of its business when the full commission is not meeting,the commission shall have an executive committee of seven members, including the chairman,vice-chairman, treasurer, and four other members elected annually by the commission. Theexecutive committee, subject to the provisions of this compact and consistent with the policies ofthe commission, shall function as provided in the bylaws of the commission.
(b) The commission may establish advisory and technical committees, membership onwhich may include private persons and public officials, in furthering any of its activities. Suchcommittees may consider any matter of concern to the commission, including problems ofspecial interest to any party state and problems dealing with particular types of taxes.
(c) The commission may establish such additional committees as its bylaws may provide.
3. In addition to powers conferred elsewhere in this compact, the commission shall havepower to:
(a) study state and local tax systems and particular types of state and local taxes;
(b) develop and recommend proposals for an increase in uniformity or compatibility ofstate and local tax laws with a view toward encouraging the simplification and improvement ofstate and local tax law and administration;
(c) compile and publish information as in its judgment would assist the party states inimplementation of the compact and taxpayers in complying with state and local tax laws; and
(d) do all things necessary and incidental to the administration of its functions pursuantto this compact.
4. (a) The commission shall submit to the governor or designated officer or officers ofeach party state a budget of its estimated expenditures for such period as may be required by thelaws of that state for presentation to the legislature thereof.
(b) Each of the commission's budgets of estimated expenditures shall contain specificrecommendations of the amounts to be appropriated by each of the party states. The total amountof appropriations requested under any such budget shall be apportioned among the party states asfollows: one-tenth in equal shares; and the remainder in proportion to the amount of revenuecollected by each party state and its subdivisions from income taxes, capital stock taxes, grossreceipts taxes, sales and use taxes. In determining such amounts, the commission shall employsuch available public sources of information as, in its judgment, present the most equitable andaccurate comparisons among the party states. Each of the commission's budgets of estimatedexpenditures and requests for appropriations shall indicate the sources used in obtaininginformation employed in applying the formula contained in this paragraph.
(c) The commission shall not pledge the credit of any party state. The commission maymeet any of its obligations in whole or in part with funds available to it under paragraph 1 (i) ofthis article; provided that the commission takes specific action setting aside such funds prior toincurring any 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), the commission shall notincur any obligation prior to the allotment of funds by the party states adequate to meet the same.
(d) The commission shall keep accurate accounts of all receipts and disbursements. Thereceipts and disbursements of the commission shall be subject to the audit and accountingprocedures established under its bylaws. All receipts and disbursements of funds handled by thecommission shall be audited 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 the commission.
(e) The accounts of the commission shall be open at any reasonable time for inspectionby duly constituted officers of the party states and by any persons authorized by the commission.
(f) Nothing contained in this article shall be construed to prevent commissioncompliance with laws relating to audit or inspection of accounts by or on behalf of any
government contributing to the support of the commission.
1. Whenever any two or more party states, or subdivisions of party states, have uniformor similar provisions of law relating to an income tax, the commission may adopt uniformregulations for any phase of the administration of such law, including assertion of jurisdiction totax, or prescribing uniform tax forms. The commission may also act with respect to theprovisions of Article IV of this compact.
2. Prior to the adoption of any regulations, the commission shall:
(a) as provided in its bylaws, hold at least one public hearing on due notice to all affectedparty states and subdivisions thereof and to all taxpayers and other persons who have madetimely request of the commission for advance notice of its regulation-making proceedings; and
(b) afford all affected party states and subdivisions and interested persons an opportunityto submit relevant written data and views, which shall be considered fully by the commission.
3. The commission shall submit any regulations adopted by it to the appropriate officialsof all party states and subdivisions to which they might apply. Each such state and subdivisionshall consider any such regulation for adoption in accordance with its own laws and procedures.
1. This article shall be in force only in those party states that specifically provide thereforby statute.
2. Any party state or subdivision thereof desiring to make or participate in an audit of anyaccounts, books, papers, records, or other documents may request the commission to perform theaudit on its behalf. In responding to the request, the commission shall have access to and mayexamine, at any reasonable time, such accounts, books, papers, records, and other documents andany relevant property or stock of merchandise. The commission may enter into agreements withparty states or their subdivisions for assistance in performance of the audit. The commissionshall make charges, to be paid by the state or local government or governments for which itperforms the service, for any audits performed by it in order to reimburse itself for the actualcosts incurred in making the audit.
3. The commission may require the attendance of any person within the state where it isconducting an audit or part thereof at a time and place fixed by it within such state for thepurpose of giving testimony with respect to any account, book, paper, document, other record,property, or stock of merchandise being examined in connection with the audit. If the person isnot within the jurisdiction, he may be required to attend for such purpose at any time and placefixed by the commission within the state of which he is a resident; provided that such state hasadopted this article.
4. The commission may apply to any court having power to issue compulsory process fororders in aid of its powers and responsibilities pursuant to this article and any and all such courtsshall have jurisdiction to 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 matter on account of whichthe commission seeks an order is within the jurisdiction of the court to which application ismade, such application may be to a court in the state or subdivision on behalf of which the auditis being made or a court in the state in which the object of the order being sought is situated. Theprovisions of this paragraph apply only to courts in a state that has adopted this article.
5. The commission may decline to perform any audit requested if it finds that itsavailable personnel or other resources are insufficient for the purpose or that, in the terms
requested, the audit is impracticable of satisfactory performance. If the commission, on the basisof its experience, has reason to believe that an audit of a particular taxpayer, either at a particulartime or on a particular schedule, would be of interest to a number of party states or theirsubdivisions, it may offer to make the audit or audits, the offer to be contingent on sufficientparticipation therein as determined by the commission.
6. Information obtained by any audit pursuant to this article shall be confidential andavailable only for tax purposes to party states, their subdivisions or the United States. Availability of information shall be in accordance with the laws of the states or subdivisions onwhose account the commission performs the audit, and only through the appropriate agencies orofficers of such states or subdivisions. Nothing in this article shall be construed to require anytaxpayer to keep records for any period not otherwise required by law.
7. Other arrangements made or authorized pursuant to law for cooperative audit by or onbehalf of the party states or any of their subdivisions are not superseded or invalidated by thisarticle.
8. In no event shall the commission make any charge against a taxpayer for an audit.
9. As used in this article, "tax," in addition to the meaning ascribed to it in Article II,means any tax or license fee imposed in whole or in part for revenue purposes.
1. Whenever the commission finds a need for settling disputes concerningapportionments and allocations by arbitration, it may adopt a regulation placing this article ineffect, notwithstanding the provisions of Article VII.
2. The commission shall select and maintain an arbitration panel composed of officersand employees of state and local governments and private persons who shall be knowledgeableand experienced in matters of tax law and administration.
3. Whenever a taxpayer who has elected to employ Article IV, or whenever the laws ofthe party state or subdivision thereof are substantially identical with the relevant provisions ofArticle IV, the taxpayer, by written notice to the commission and to each party state orsubdivision thereof that would be affected, may secure arbitration of an apportionment orallocation, if he is dissatisfied with the final administrative determination of the tax agency of thestate or subdivision with respect thereto on the ground that it would subject him to double ormultiple taxation by two or more party states or subdivisions thereof. Each party state andsubdivision thereof hereby consents to the arbitration as provided herein, and agrees to be boundthereby.
4. The arbitration board shall be composed of one person selected by the taxpayer, oneby the agency or agencies involved, and one member of the commission's arbitration panel. If theagencies involved are unable to agree on the person to be selected by them, such person shall beselected by lot from the total membership of the arbitration panel. The two persons selected forthe board in the manner provided by the foregoing provisions of this paragraph shall jointly selectthe third member of the board. If they are unable to agree on the selection, the third membershall be selected by lot from among the total membership of the arbitration panel. No member ofa board selected by lot shall be qualified to serve if he is an officer or employee or is otherwiseaffiliated with any party to the arbitration proceeding. Residence within the jurisdiction of aparty to the arbitration proceeding shall not constitute affiliation within the meaning of thisparagraph.
5. The board may sit in any state or subdivision party to the proceeding, in the state of the
taxpayer's incorporation, residence, or domicile, in any state where the taxpayer does business, orin any place that it finds most appropriate for gaining access to evidence relevant to the matterbefore it.
6. The board shall give due notice of the times and places of its hearings. The partiesshall be entitled to be heard, to present evidence, and to 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 requirethe attendance of witnesses and the production of accounts, books, papers, records, and otherdocuments, and issue commissions to take testimony. Subpoenas may be signed by any memberof the board. In case of failure to obey a subpoena, and upon application by the board, any judgeof a court of competent jurisdiction of the state in which the board is sitting or in which theperson to whom the subpoena is directed may be found may make an order requiring compliancewith the subpoena, and the court may punish failure to obey the order as a contempt. Theprovisions of this paragraph apply only in states that have adopted this article.
8. Unless the parties otherwise agree the expenses and other costs of the arbitration shallbe assessed and allocated among the parties by the board in such manner as it may determine. The commission shall fix a schedule of compensation for members of arbitration boards and ofother allowable expenses and costs. No officer or employee of a state or local government whoserves as a member of a board shall be entitled to compensation therefor unless he is required onaccount of his service to forego the regular compensation attaching to his public employment, butany such board members shall be entitled to expenses.
9. The board shall determine the disputed apportionment or allocation and any mattersnecessary thereto. The determinations of the board shall be final for purposes of making theapportionment or allocation, but for no other purpose.
10. The board shall file with the commission and with each tax agency represented in theproceeding: the determination of the board; the board's written statement of its reason therefor;the record of the board's proceedings; and any other documents required by the arbitration rulesof the commission to be filed.
11. The commission shall publish the determinations of boards together with thestatements of the reasons therefor.
12. The commission shall adopt and publish rules of procedure and practice and shall filea copy of such rules and of any amendment thereto with the appropriate agency or officer in eachof the party states.
13. Nothing contained herein shall prevent at any time a written compromise of anymatter or matters in dispute, if otherwise lawful, by the parties to the arbitration proceeding.
1. This compact shall enter into force when enacted into law by any seven states. Thereafter, this compact shall become effective as to any other state upon its enactment thereof. The commission shall arrange for notification of all party states whenever there is a newenactment of the compact.
2. Any party state may withdraw from this compact by enacting a statute repealing thesame. No withdrawal shall affect any liability already incurred by or chargeable to a party stateprior to the time of such withdrawal.
3. No proceeding commenced before an arbitration board prior to the withdrawal of astate and to which the withdrawing state or any subdivision thereof is a party shall be
discontinued or terminated by the withdrawal, nor shall the board thereby lose jurisdiction overany of the parties to the proceeding necessary to make a binding determination therein.
Nothing in this compact shall be construed to:
(a) affect the power of any state or subdivision thereof to fix rates of taxation, except thata party state shall be obligated to implement Article III 2 of this compact;
(b) apply to any tax or fixed fee imposed for the registration of a motor vehicle or any taxon motor fuel, other than a sales tax; provided that the definition of "tax" in Article VIII 9 mayapply for the purposes of that article and the commission's powers of study and recommendationpursuant to Article VI 3 may apply;
(c) withdraw or limit the jurisdiction of any state or local court or administrative officeror body with respect to any person, corporation or other entity or subject matter, except to theextent that such jurisdiction is expressly conferred by or pursuant to this compact upon anotheragency or body; or
(d) supersede or limit the jurisdiction of any court of the United States.
This compact shall be liberally construed so as to effectuate the purposes thereof. Theprovisions of this compact shall be severable and if any phrase, clause, sentence, or provision ofthis compact is declared to be contrary to the constitution of any state or of the United States orthe applicability thereof to any government, agency, person, or circumstance is held invalid, thevalidity of the remainder of this compact and the applicability thereof to any government, agency,person, or circumstance shall not be affected thereby. If this compact shall be held contrary tothe constitution of any state participating therein, the compact shall remain in full force and effectas to the remaining party states and in full force and effect as to the state affected as to allseverable matters.
Amended by Chapter 155, 2010 General Session