Multistate Tax Compact

The Multistate Tax Compact is an agreement among several U.S. states designed to simplify and coordinate the way they handle corporate and other business taxes that cross state lines. It allows states to work together in determining the proper amount of tax a business owes, avoiding double taxation or conflicts. The compact establishes rules for sharing tax information and resolving disputes, making it easier for multistate businesses to operate smoothly and fairly across multiple jurisdictions. Essentially, it promotes consistency and cooperation among states to ensure fair and simplified tax collection.