Marvin Mandel, Governor                       2123

No. 62
(Senate Joint Resolution 10)

Senate Joint Resolution urging the Governor of Maryland to make
application to the Multistate Tax Commission for the State of
Maryland to become an Associate Member of that Commission.

Whereas, The matter of taxation by states of business entities
engaged in interstate commerce is a large and complex problem; and,

Whereas, The General Assembly of Maryland and tax officials of
the State for many years have been concerned about finding a
solution to the problem that would be satisfactory both to the State
and to the business community; and,

Whereas, There is pending in the Congress of the United States
a bill, designated as H.R. 7906, also known as the Rodino Bill, to-
gether with other similar legislation, to restrict the authority of state
and local governments to tax businesses engaged in interstate com-
merce; and,

Whereas, A Multistate Tax Commission was established in 1966
to implement a tax compact among the states to provide, as an alter-
native to Federal restrictions, regulation by the states themselves of
their taxing authority in areas of multistate business; and,

Whereas, Maryland tax officials traditionally have opposed
Federal legislation similar to the Rodino bill on the basis that the
State would gain nothing and might suffer losses in both income and
sales tax revenues under its provisions; and,

Whereas, Maryland tax authorities also oppose the State's
adoption of the Multistate Tax Compact, for the reason that its plan
of allocation of income of multistate businesses for tax purposes
might adversely affect Maryland revenues, and also because the Con-
gress of the "United States has not yet adopted consent legislation
validating the provisions of that Compact; and,

Whereas, The Multistate Tax Commission has made provisions for
associate memberships at no cost to a state and with such associate
member being free to attend all commission meetings and discuss
with other members the many faceted problems having to do with
state taxation of interstate business; and,

Whereas, In addition to the eighteen (18) states with full com-
pact membership, there are eleven (11) states with associate mem-
berships, with two additional states having recently applied for
associate memberships; now, therefore, be it

Resolved by the General Assembly of Maryland, That the
Governor of Maryland be urged to apply to the Multistate Tax Com-
mission for an associate membership in that organization for the
State of Maryland; and be it further

Resolved, That copies of this resolution be sent to the Governor
and to Multistate Tax Commission, 615 East 13th Street, Kansas City
Missouri 64106 1200 LINCOLN STREET, DENVER, COLORADO
80203.

Approved April 28, 1970.