Tax News

CCH (cch.taxgroup.com) reports:

  In a sharply worded letter, a group of state legislators stated unequivocally their opposition to the Uniform Law Commission (ULC) proceeding with its current review of the Uniform Division of Income for Tax Purposes Act (UDITPA). The letter was sent to the ULC's leadership by the National Conference of State Legislatures (NCSL) Executive Committee Task Force on State and Local Taxation of Communications and Electronic Commerce.

  In 2008, the ULC appointed a drafting committee to revise the 50-year-old UDITPA. After certain legislators and taxpayers expressed their strong opposition to the revision effort, the ULC downgraded the panel to a study committee. However, the opposition to the committee's efforts did not abate. Following a May 14 committee conference call, the committee chair asked the ULC leadership to have until January 2010 to "explore with elected executive and legislative leaders of the states the need to revise UDITPA." (TAXDAY, 2009/05/29, S.1) The NCSL Task Force letter was a response to this request.

  The letter says the Task Force found the failure to allow legislators to participate in the May 14 conference call "incredibly offensive" and "met with incredulity" the suggestion that the committee was unclear as to legislators' stance on the revision effort. On May 30, 2009, the Task Force voted unanimously to oppose the continuation of the study committee and the effort to revise UDITPA. The letter concludes with a caution that the ULC not "squander [its] trusted trademark on an ill-conceived, ill-advised and unwarranted project."

  Subscribers can view the NCSL's letter.

 
Letter, NCSL Task Force on Communications & Electronic Commerce, June 19, 2009