California Supreme Court Holds Compact Is Not Binding in Gillette


Diann Smith criticized a California Supreme Court ruling that the Multistate Tax Compact (MTC) was not binding on the state, saying the court did not consider the context of California’s original MTC acceptance. « What matters is what the MTC and its member states thought when they adopted the compact, » Ms. Smith said, adding that states in compacts with California « need to very carefully review this decision to see if it nullifies the binding nature of other compacts that everyone thought were fixed in stone. »