In the case of certain nonbusiness income, courts and legislatures have long assigned taxing rights to a multistate business’s state of commercial domicile. In this recent article published in Tax Notes State, MTC Senior Counsel Brian Hamer explains that in the modern world it is becoming increasingly difficult–and soon may be impossible–to identify the domicile of many far-flung enterprises. He further suggests that, when a large enterprise has substantial contacts with multiple states, it is arbitrary to attribute its nonbusiness income entirely to a single state. As a consequence, he concludes, reliance on commercial domicile must be reconsidered
To read the Commercial Domicile: The Crumbling Pillar of Corporate Income Taxation (PDF) article, originally published in the August 5, 2024 edition of the Tax Notes State, Volume 113, p. 363.