A State and Local Tax Practitioner’s Insights on Formulary Apportionment



Peter Faber wrote this bylined letter to the editor on formulary apportionment in state taxation of international corporate income. As more states base apportionment only on receipts, Mr. Faber wrote, “Many of us have argued that Congress should exercise its commerce clause powers to require a uniform apportionment formula to be adopted by all of the states, but Congress has not been willing to do this.” Formulary apportionment, Mr. Faber added, requires “a consensus among participating countries about the apportionment formula.”