Multistate Tax Commission Considers State Centralization of Communications TaxesThe Multistate Tax Commission (MTC) has sent a survey sent to tax administrators in its 20 member states, seeking their views on three proposed model statutes that would centralize administration of communications transaction taxes at the state level, to varying degrees. Local governments would effectively be taken out of the communications tax business in states where these proposals would be adopted (except to the extent that the state law might call for the remission of some or all of state communications tax proceeds to localities). Such “centralization” of all communications taxes at the state level has been a longstanding goal of the communications industry, and a few states, including Virginia and Florida, have already gone down this road.
GFOA members in the following states are encouraged to review the MTC proposals and contact their state’s tax administrator to discuss how these proposals could potentially affect local governments’ ability to control their tax structures and receive their fair share of tax proceeds: Alabama, Alaska, Arkansas, California, Colorado, District of Columbia, Hawaii, Idaho, Kansas, Michigan, Minnesota, Missouri, Montana, New Mexico, North Dakota, Oregon, South Dakota, Texas, Utah, and Washington.
Click here to see the MTC survey.
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