What is the Interstate Income Act of 1959?
Interstate Income Act of 1959 restricts a state’s authority to tax interstate commerce.
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What are the principles of the Interstate Income Act of 1959?
Principles of the Interstate Income Act of 1959:
- A state can’t collect income tax on sales within its borders as long as the orders are filled and shipped outside of the state.
- It applies to tangible property only.
- It does not protect a Corporation in the state where incorporated.
- It does not protect from taxes using metrics other than income. (Example: Sales Tax)
What is the Uniform Division of Income for Tax Purposes Act (UDITPA)?
It is the uniform criteria for determining taxable income of multi-state corporations.
it is also known as the Multi-State Tax Compact.
What are the basic principles of UDITPA?
UDITPA is designed to ensure a company is not taxed more than once on its income.
It forces a corporation to segregate Business Income from Non-Business Income.
What is considered Business Income?
Business Income is part of the corporation’s regular course of business.
It includes the acquisition of tangible and intangible property if such activities are part of the regular trade or business.
