California Supreme Court Holds Compact Is Not Binding in Gillette

Overview


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.”