COBI 2015 - Multi-State Tax Compact

Overview
Issues
Performance
Background
Financials

Sources Uses

FY 2016 Appropriation

The Multi-State Tax Compact (MTC) is a group of state governments working together to help make state tax systems fair, effective, and efficient for interstate and international commerce. It is also an effort to protect state tax sovereignty.

The Compact's two primary projects are the Joint Audit Program and the National Nexus Program.

Joint Audit Program. Reviews a business' sales and corporate income tax filings for several states at the same time. Accordingly, the audit program encourages compliance with state tax laws, generates tax revenues for states, contributes to uniformity in taxpayer treatment, and helps states learn about new industry conditions and circumstances.

National Nexus Program. Encourages voluntary disclosure and discovers businesses that are not filing returns with states. The Nexus program facilitates an exchange of information between states to identify business reporting or filing inconsistencies among these states.

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $252,200 from all sources for Multi-State Tax Compact. This is a 0 percent change from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $205,400 from the General/Education Funds, a change of 0 percent from revised Fiscal Year 2015 estimates.

Multi-State Tax Compact Collections

The Tax Commission utilizes the work of the Multi-State Tax Compact (MTC). Referrals from audits conducted by the MTC result in the collections reflected in this graph.

Statute

Although the State is not required to be a member of the MTC, in Utah Annotated Code Title 59, Chapter 1, Section 801 the Legislature enacted into law Utah's participation in this compact.

Intent Language

HB0003: Item 61

Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided to the Utah State Tax Commission in Item 13, Chapter 10, Laws of Utah 2014 not lapse at the close of Fiscal Year 2015. The use of nonlapsing funds is limited to the costs directly related to the modernization of tax and motor vehicle systems and processes.

HB0003: Item 61

Under Section 63J-1-603 of the Utah Code, the Legislature intends that unspent funds available from Temporary Permit Fees paid to the Motor Vehicle Enforcement Division shall transfer at the close of Fiscal Year 2015 to the new restricted fund created for the deposit of these fees.

Funding for the Multi-State Tax Compact is from the General Fund, the Education Fund, and the Tax Commission Administrative Charge Restricted Account. Annual expenditures represent membership dues to the Multi-State Tax Compact and multi-state audit services that are provided by that organization.

Display By:

Funding Source

Expenditure Category

Appropriation Type:

Appropriation History by

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
General Fund	125,000	117,000	123,800	127,600	126,000	2,600	128,600	0	128,600
General Fund, One-time	0	11,200	0	0	0	0	0	0	0
Education Fund	72,200	72,200	75,300	76,300	75,300	1,500	76,800	0	76,800
GFR - Tax Commission Administrative Char	44,000	44,000	45,900	46,500	45,900	900	46,800	0	46,800
Total	$241,200	$244,400	$245,000	$250,400	$247,200	$5,000	$252,200	$0	$252,200

Show Table | Show Additional Information

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Current Expense	241,200	244,400	245,000	250,400	247,200	5,000	252,200	0	252,200
Total	$241,200	$244,400	$245,000	$250,400	$247,200	$5,000	$252,200	$0	$252,200

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.