State Tax Issues

In recent years, several states have attempted to expand their fiscal jurisdiction outside the United States by taxing income received by non-U.S. companies. These types of extraterritorial taxation proposals threaten to impose double taxation on non-U.S. companies and often violate the spirit of bilaterally negotiated income tax treaties, federal tax rules, and international tax principles. These efforts also make states less attractive locations for foreign direct investment.

OFII actively works at the state level to ensure policymakers understand the implication of extraterritorial tax policy and advocates for states to abide by the United States’ obligations under its tax treaties with other countries.
 

Resources

AlabamaOFII responds to tax proposal threatening insourcing companies with double taxation, April 4, 2017

MaineOFII responds to push to threat of double taxation for global firms, March 22, 2017

MarylandOFII responds to tax proposal threatening to double tax job insourcers, February 22, 2017

MassachusettsOFII responds to tax proposals undermining FDI efforts, May 9, 2017

OregonOFII endorses common-sense approach to state corporate tax policy, March 15, 2017

OregonOFII advocates modification to state tax proposal, February 6, 2017

IllinoisOFII responds to overreaching tax proposal that misunderstands corporate tax structure, March 14, 2017

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