State Legislation

State governments have been facing overwhelming budget deficits and looking at all possible ways of raising revenue.  Among the proposals frequently considered are withholding on distributions for nonresident partners and/or composite returns and, particularly in Texas, subjecting PTPs to state business taxes.  The Association has succeed in obtaining exclusions for PTPs from several of these proposals, including a model law withholding law adopted by the Multistate Tax Commission (MTC), but new legislative efforts continue to be necessary.

Association members can find more information on these efforts in the Members' Section under "State Initiatives."