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Minnesota Supreme Court denies use of Multistate Tax Compact’s equally weighted three-factor apportionment election

The Minnesota Supreme Court on June 22 denied a taxpayer’s election to use the equally weighted three-factor apportionment formula provided by the Multistate Tax Compact. In affirming the Minnesota Tax Court, the Supreme Court held that the state’s enactment of the Compact, specifically Articles III and IV, didn't create a contractual obligation that prohibited the state from later repealing these provisions without withdrawing completely from the Compact.

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