§ 24-60-1301 — Execution of compact

Colorado § 24-60-1301

• Jurisdiction: Colorado
• Title 24: Government
• Art.: Interstate Compacts and Agreements

Text

The governor is hereby authorized to
enter into a compact on behalf of this state with any of the United States or other
jurisdictions legally joining therein in the form substantially as follows:

Article I.

Purposes.

The purposes of this compact are to:

1. Facilitate proper determination of State and local tax liability of multistate
taxpayers, including the equitable apportionment of tax bases and settlement of
apportionment disputes.

2. Promote uniformity or compatibility in significant components of tax
systems.

3. Facilitate taxpayer convenience and compliance in the filing of tax returns
and in other phases of tax administration.

4. Avoid duplicative taxation.

Article II.

Definitions.

As used in this compact:

1. State means a State of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, or any Territory or Possession of the United States.

2. Subdivision means any governmental unit or special district of a State.

3. Taxpayer means any corporation, partnership, firm, association,
governmental unit or agency or person acting as a business entity in more than one
State.

4. Income tax means a tax imposed on or measured by net income
including any tax imposed on or measured by an amount arrived at by deducting
expenses from gross income, one or more forms of which expenses are not
specifically and directly related to particular transactions.

5. Capital stock tax means a tax measured in any way by the capital of a
corporation considered in its entirety.

6. Gross receipts tax means a tax, other than a sales tax, which is imposed
on or measured by the gross volume of business, in terms of gross receipts or in
other terms, and in the determination of which no deduction is allowed which would
constitute the tax an income tax.

7. Sales tax means a tax imposed with respect to the transfer for a
consideration of ownership, possession or custody of tangible personal property or
the rendering of services measured by the price of the tangible personal property
transferred or services rendered and which is required by State or local law to be
separately stated from the sales price by the seller, or which is customarily
separately stated from the sales price, but does not include a tax imposed
exclusively on the sale of a specifically identified commodity or article or class of
commodities or articles.

8. Use tax means a nonrecurring tax, other than a sales tax, which (a) is
imposed on or with respect to the exercise or enjoyment of any right or power over
tangible personal property incident to the ownership, possession or custody of that
property or the leasing of that property from another including any consumption,
keeping, retention, or other use of tangible personal property and (b) is
complementary to a sales tax.

9. Tax means an income tax, capital stock tax, gross receipts tax, sales tax,
use tax, and any other tax which has a multistate impact, except that the provisions
of Articles III, IV and V of this compact shall apply only to the taxes specifically
designated therein and the provisions of Article IX of this compact shall apply only
in respect to determinations pursuant to Article IV.

Article III.

Elements of Income Tax Laws.

Taxpayer Option, State and Local Taxes.

1. Repealed.

Taxpayer Option, Short Form.

2. Each party State or any subdivision thereof which imposes an income tax
shall provide by law that any taxpayer required to file a return, whose only activities
within the taxing jurisdiction consist of sales and do not include owning or renting
real estate or tangible personal property, and whose dollar volume of gross sales
made during the tax year within the State or subdivision, as the case may be, is not
in excess of $100,000 may elect to report and pay any tax due on the basis of a
percentage of such volume, and shall adopt rates which shall produce a tax which
reasonably approximates the tax otherwise due. The Multistate Tax Commission,
not more than once in five years, may adjust the $100,000 figure in order to reflect
such changes as may occur in the real value of the dollar, and such adjusted figure,
upon adoption by the Commission, shall replace the $100,000 figure specifically
provided herein. Each party State and subdivision thereof may make the same
election available to taxpayers additional to those specified in this paragraph.

Coverage.

3. Nothing in this Article relates to the reporting or payment of any tax other
than an income tax.

Article IV.

Division of Income.

1. As used in this Article, unless the context otherwise requires:

(a) Business income means income arising from transactions and activity in
the regular course of the taxpayer's trade or business and includes income from
tangible and intangible property if the acquisition, management, and disposition of
the property constitute integral parts of the taxpayer's regular trade or business
operations.

(b) Commercial domicile means the principal place from which the trade or
business of the taxpayer is directed or managed.

(c) Compensation means wages, salaries, commissions and any other form
of remuneration paid to employees for personal services.

(d) Financial organization means any bank, trust company, savings bank,
industrial bank, land bank, safe deposit company, private banker, savings and loan
association, credit union, cooperative bank, small loan company, sales finance
company, investment company, or any type of insurance company.

(e) Nonbusiness income means all income other than business income.

(f) Public utility means any business entity (1) which owns or operates any
plant, equipment, property, franchise, or license for the transmission of
communications, transportation of goods or persons, except by pipe line, or the
production, transmission, sale, delivery, or furnishing of electricity, water or steam;
and (2) whose rates of charges for goods or services have been established or
approved by a Federal, State or local government or governmental agency.

(g) Sales means all gross receipts of the taxpayer not allocated under
paragraphs of this Article.

(h) State means any State of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, any Territory or Possession of the United States,
and any foreign country or political subdivision thereof.

(i) This State means the State in which the relevant tax return is filed or, in
the case of application of this Article to the apportionment and allocation of income
for local tax purposes, the subdivision or local taxing district in which the relevant
tax return is filed.

2. Any taxpayer having income from business activity which is taxable both
within and without this State, other than activity as a financial organization or
public utility or the rendering of purely personal services by an individual, shall
allocate and apportion his net income as provided in this Article. If a taxpayer has
income from business activity as a public utility but derives the greater percentage
of his income from activities subject to this Article, the taxpayer may elect to
allocate and apportion his entire net income as provided in this Article.

3. For purposes of allocation and apportionment of income under this Article,
a taxpayer is taxable in another State if (1) in that State he is subject to a net
income tax, a franchise tax measured by net income, a franchise tax for the
privilege of doing business, or a corporate stock tax, or (2) that State has
jurisdiction to subject the taxpayer to a net income tax regardless of whether, in
fact, the State does or does not.

4. Rents and royalties from real or tangible personal property, capital gains,
interest, dividends or patent or copyright royalties, to the extent that they
constitute nonbusiness income, shall be allocated as provided in paragraphs 5
through 8 of this Article.

5. (a) Net rents and royalties from real property located in this State are
allocable to this State.

(b) Net rents and royalties from tangible personal property are allocable to
this State: (1) if and to the extent that the property is utilized in this State, or (2) in
their entirety if the taxpayer's commercial domicile is in this State and the taxpayer
is not organized under the laws of or taxable in the State in which the property is
utilized.

(c) The extent of utilization of tangible personal property in a State is
determined by multiplying the rents and royalties by a fraction, the numerator of
which is the number of days of physical location of the property in the State during
the rental or royalty period in the taxable year and the denominator of which is the
number of days of physical location of the property everywhere during all rental or
royalty periods in the taxable year. If the physical location of the property during
the rental or royalty period is unknown or unascertainable by the taxpayer, tangible
personal property is utilized in the State in which the property was located at the
time the rental or royalty payer obtained possession.

6. (a) Capital gains and losses from sales of real property located in this
State are allocable to this State.

(b) Capital gains and losses from sales of tangible personal property are
allocable to this State if (1) the property had a situs in this State at the time of the
sale, or (2) the taxpayer's commercial domicile is in this State and the taxpayer is
not taxable in the State in which the property had a situs.

(c) Capital gains and losses from sales of intangible personal property are
allocable to this State if the taxpayer's commercial domicile is in this State.

7. Interest and dividends are allocable to this State if the taxpayer's
commercial domicile is in this State.

8. (a) Patent and copyright royalties are allocable to this State: (1) if and to
the extent that the patent or copyright is utilized by the payer in this State, or (2) if
and to the extent that the patent copyright is utilized by the payer in a State in
which the taxpayer is not taxable and the taxpayer's commercial domicile is in this
State.

(b) A patent is utilized in a State to the extent that it is employed in
production, fabrication, manufacturing, or other processing in the State or to the
extent that a patented product is produced in the State. If the basis of receipts
from patent royalties does not permit allocation to States or if the accounting
procedures do not reflect States of utilization, the patent is utilized in the State in
which the taxpayer's commercial domicile is located.

(c) A copyright is utilized in a State to the extent that printing or other
publication originates in the State. If the basis of receipts from copyright royalties
does not permit allocation to States or if the accounting procedures do not reflect
States of utilization, the copyright is utilized in the State in which the taxpayer's
commercial domicile is located.

9. All business income shall be apportioned to this State by multiplying the
income by a fraction, the numerator of which is the property factor plus the payroll
factor plus the sales factor, and the denominator of which is three.

10. The property factor is a fraction, the numerator of which is the average
value of the taxpayer's real and tangible personal property owned or rented and
used in this State during the tax period and the denominator of which is the average
value of all the taxpayer's real and tangible personal property owned or rented and
used during the tax period.

11. Property owned by the taxpayer is valued at its original cost. Property
rented by the taxpayer is valued at eight times the net annual rental rate. Net
annual rental rate is the annual rental rate paid by the taxpayer less any annual
rental rate received by the taxpayer from subrentals.

12. The average value of property shall be determined by averaging the
values at the beginning and ending of the tax period but the tax administrator may
require the averaging of monthly values during the tax period if reasonably required
to reflect properly the average value of the taxpayer's property.

13. The payroll factor is a fraction, the numerator of which is the total
amount paid in this State during the tax period by the taxpayer for compensation
and the denominator of which is the total compensation paid everywhere during the
tax period.

14. Compensation is paid in this State if:

(a) the individual's service is performed entirely within the State;

(b) the individual's service is performed both within and without the State,
but the service performed without the State is incidental to the individual's service
within the State; or

(c) some of the service is performed in the State and (1) the base of
operations or, if there is no base of operations, the place from which the service is
directed or controlled is in the State, or (2) the base of operations or the place from
which the service is directed or controlled is not in any State in which some part of
the service is performed, but the individual's residence is in this State.

15. The sales factor is a fraction, the numerator of which is the total sales of
the taxpayer in this State during the tax period, and the denominator of which is the
total sales of the taxpayer everywhere during the tax period.

16. Sales of tangible personal property are in this State if:

(a) the property is delivered or shipped to a purchaser, other than the United
States Government, within this State regardless of the f.o.b. point or other
conditions of the sale; or

(b) the property is shipped from an office, store, warehouse, factory, or other
place of storage in this State and (1) the purchaser is the United States Government
or (2) the taxpayer is not taxable in the State of the purchaser.

17. Sales, other than sales of tangible personal property, are in this State if:

(a) the income-producing activity is performed in this State; or

(b) the income-producing activity is performed both in and outside this State
and a greater proportion of the income-producing activity is performed in this State
than in any other State, based on costs of performance.

18. If the allocation and apportionment provisions of this Article do not fairly
represent the extent of the taxpayer's business activity in this State, the taxpayer
may petition for or the tax administrator may require, in respect to all or any part of
the taxpayer's business activity, if reasonable:

(a) separate accounting;

(b) the exclusion of any one or more of the factors;

(c) the inclusion of one or more additional factors which will fairly represent
the taxpayer's business activity in this State; or

(d) the employment of any other method to effectuate an equitable
allocation and apportionment of the taxpayer's income.

Article V.

Elements of Sales and Use Tax Laws.

Tax Credit.

1. Each purchaser liable for a use tax on tangible personal property shall be
entitled to full credit for the combined amount or amounts of legally imposed sales
or use taxes paid by him with respect to the same property to another State and any
subdivision thereof. The credit shall be applied first against the amount of any use
tax due the State, and any unused portion of the credit shall then be applied
against the amount of any use tax due a subdivision.

Exemption Certificates, Vendors May Rely.

2. Whenever a vendor receives and accepts in good faith from a purchaser a
resale or other exemption certificate or other written evidence of exemption
authorized by the appropriate State or subdivision taxing authority, the vendor shall
be relieved of liability for a sales or use tax with respect to the transaction.

Article VI.

The Commission.

Organization and Management.

1. (a) The Multistate Tax Commission is hereby established. It shall be
composed of one member from each party State who shall be the head of the
State agency charged with the administration of the types of taxes to which this
compact applies. If there is more than one such agency the State shall provide by
law for the selection of the Commission member from the heads of the relevant
agencies. State law may provide that a member of the Commission be represented
by an alternate but only if there is on file with the Commission written notification
of the designation and identity of the alternate. The Attorney General of each party
State or his designee, or other counsel if the laws of the party State specifically
provide, shall be entitled to attend the meetings of the Commission, but shall not
vote. Such Attorneys General, designees, or other counsel shall receive all notices
of meetings required under paragraph 1 (e) of this Article.

(b) Each party State shall provide by law for the selection of representatives
from its subdivisions affected by this compact to consult with the Commission
member from that State.

(c) Each member shall be entitled to one vote. The Commission shall not act
unless a majority of the members are present, and no action shall be binding unless
approved by a majority of the total number of members.

(d) The Commission shall adopt an official seal to be used as it may provide.

(e) The Commission shall hold an annual meeting and such other regular
meetings as its bylaws may provide and such special meetings as its Executive
Committee may determine. The Commission bylaws shall specify the dates of the
annual and any other regular meetings, and shall provide for the giving of notice of
annual, regular and special meetings. Notices of special meetings shall include the
reasons therefor and an agenda of the items to be considered.

(f) The Commission shall elect annually, from among its members, a
Chairman, a Vice Chairman and a Treasurer. The Commission shall appoint an
Executive Director who shall serve at its pleasure, and it shall fix his duties and
compensation. The Executive Director shall be Secretary of the Commission. The
Commission shall make provision for the bonding of such of its officers and
employees as it may deem appropriate.

(g) Irrespective of the civil service, personnel or other merit system laws of
any party State, the Executive Director shall appoint or discharge such personnel
as may be necessary for the performance of the functions of the Commission and
shall fix their duties and compensation. The Commission bylaws shall provide for
personnel policies and programs.

(h) The Commission may borrow, accept or contract for the services of
personnel from any State, the United States, or any other governmental entity.

(i) The Commission may accept for any of its purposes and functions any and
all donations and grants of money, equipment, supplies, materials and services,
conditional or otherwise, from any governmental entity, and may utilize and dispose
of the same.

(j) The Commission may establish one or more offices for the transacting of
its business.

(k) The Commission shall adopt bylaws for the conduct of its business. The
Commission shall publish its bylaws in convenient form, and shall file a copy of the
bylaws and any amendments thereto with the appropriate agency or officer in each
of the party States.

(l) The Commission annually shall make to the Governor and legislature of
each party State a report covering its activities for the preceding year. Any
donation or grant accepted by the Commission or services borrowed shall be
reported in the annual report of the Commission, and shall include the nature,
amount and conditions, if any, of the donation, gift, grant or services borrowed and
the identity of the donor or lender. The Commission may make additional reports as
it may deem desirable.

Committees.

2. (a) To assist in the conduct of its business when the full Commission is not
meeting, the Commission shall have an Executive Committee of seven members,
including the Chairman, Vice Chairman, Treasurer and four other members elected
annually by the Commission. The Executive Committee, subject to the provisions of
this compact and consistent with the policies of the Commission, shall function as
provided in the bylaws of the Commission.

(b) The Commission may establish advisory and technical committees,
membership on which may include private persons and public officials, in furthering
any of its activities. Such committees may consider any matter of concern to the
Commission, including problems of special interest to any party State and problems
dealing with particular types of taxes.

(c) The Commission may establish such additional committees as its bylaws
may provide.

Powers.

3. In addition to powers conferred elsewhere in this compact, the
Commission shall have power to:

(a) Study State and local tax systems and particular types of State and local
taxes.

(b) Develop and recommend proposals for an increase in uniformity or
compatibility of State and local tax laws with a view toward encouraging the
simplification and improvement of State and local tax law and administration.

(c) Compile and publish information as in its judgment would assist the party
States in implementation of the compact and taxpayers in complying with State
and local tax laws.

(d) Do all things necessary and incidental to the administration of its
functions pursuant to this compact.

Finance.

4. (a) The Commission shall submit to the Governor or designated officer or
officers of each party State a budget of its estimated expenditures for such period
as may be required by the laws of that State for presentation to the legislature
thereof.

(b) Each of the Commission's budgets of estimated expenditures shall
contain specific recommendations of the amounts to be appropriated by each of the
party States. The total amount of appropriations requested under any such budget
shall be apportioned among the party States as follows: one-tenth in equal shares;
and the remainder in proportion to the amount of revenue collected by each party
State and its subdivisions from income taxes, capital stock taxes, gross receipts
taxes, sales and use taxes. In determining such amounts, the Commission shall
employ such available public sources of information as, in its judgment, present the
most equitable and accurate comparisons among the party States. Each of the
Commission's budgets of estimated expenditures and requests for appropriations
shall indicate the sources used in obtaining information employed in applying the
formula contained in this paragraph.

(c) The Commission shall not pledge the credit of any party State. The
Commission may meet any of its obligations in whole or in part with funds available
to it under paragraph 1 (i) of this Article: provided that the Commission takes
specific action setting aside such funds prior to incurring any obligation to be met
in whole or in part in such manner. Except where the Commission makes use of
funds available to it under paragraph 1 (i), the Commission shall not incur any
obligation prior to the allotment of funds by the party States adequate to meet the
same.

(d) The Commission shall keep accurate accounts of all receipts and
disbursements. The receipts and disbursements of the Commission shall be subject
to the audit and accounting procedures established under its bylaws. All receipts
and disbursements of funds handled by the Commission shall be audited yearly by a
certified or licensed public accountant and the report of the audit shall be included
in and become part of the annual report of the Commission.

(e) The accounts of the Commission shall be open at any reasonable time for
inspection by duly constituted officers of the party States and by any persons
authorized by the Commission.

(f) Nothing contained in this Article shall be construed to prevent
Commission compliance with laws relating to audit or inspection of accounts by or
on behalf of any government contributing to the support of the Commission.

Article VII.

Uniform Regulations and Forms.

1. Whenever any two or more party States, or subdivisions of party States,
have uniform or similar provisions of law relating to an income tax, capital stock tax,
gross receipts tax, sales or use tax, the Commission may adopt uniform regulations
for any phase of the administration of such law, including assertion of jurisdiction to
tax, or prescribing uniform tax forms. The Commission may also act with respect to
the provisions of Article IV of this compact.

2. Prior to the adoption of any regulation, the Commission shall:

(a) As provided in its bylaws, hold at least one public hearing on due notice to
all affected party States and subdivisions thereof and to all taxpayers and other
persons who have made timely request of the Commission for advance notice of its
regulation-making proceedings.

(b) Afford all affected party States and subdivisions and interested persons
an opportunity to submit relevant written data and views, which shall be considered
fully by the Commission.

3. The Commission shall submit any regulations adopted by it to the
appropriate officials of all party States and subdivisions to which they might apply.
Each such State and subdivision shall consider any such regulation for adoption in
accordance with its own laws and procedures.

Article VIII.

Interstate Audits.

1. This Article shall be in force only in those party States that specifically
provide therefor by statute.

2. Any party State or subdivision thereof desiring to make or participate in an
audit of any accounts, books, papers, records or other documents may request the
Commission to perform the audit on its behalf. In responding to the request, the
Commission shall have access to and may examine, at any reasonable time, such
accounts, books, papers, records, and other documents and any relevant property
or stock of merchandise. The Commission may enter into agreements with party
States or their subdivisions for assistance in performance of the audit. The
Commission shall make charges, to be paid by the State or local government or
governments for which it performs the service, for any audits performed by it in
order to reimburse itself for the actual costs incurred in making the audit.

3. The Commission may require the attendance of any person within the
State where it is conducting an audit or part thereof at a time and place fixed by it
within such State for the purpose of giving testimony with respect to any account,
book, paper, document, other record, property or stock of merchandise being
examined in connection with the audit. If the person is not within the jurisdiction, he
may be required to attend for such purpose at any time and place fixed by the
Commission within the State of which he is a resident: provided that such State has
adopted this Article.

4. The Commission may apply to any court having power to issue compulsory
process for orders in aid of its powers and responsibilities pursuant to this Article
and any and all such courts shall have jurisdiction to issue such orders. Failure of
any person to obey any such order shall be punishable as contempt of the issuing
court. If the party or subject matter on account of which the Commission seeks an
order is within the jurisdiction of the court to which application is made, such
application may be to a court in the State or subdivision on behalf of which the audit
is being made or a court in the State in which the object of the order being sought is
situated. The provisions of this paragraph apply only to courts in a State that has
adopted this Article.

5. The Commission may decline to perform any audit requested if it finds
that its available personnel or other resources are insufficient for the purpose or
that, in the terms requested, the audit is impracticable of satisfactory performance.
If the Commission, on the basis of its experience, has reason to believe that an audit
of a particular taxpayer, either at a particular time or on a particular schedule,
would be of interest to a number of party States or their subdivisions, it may offer to
make the audit or audits, the offer to be contingent on sufficient participation
therein as determined by the Commission.

6. Information obtained by any audit pursuant to this Article shall be
confidential and available only for tax purposes to party States, their subdivisions
or the United States. Availability of information shall be in accordance with the laws
of the States or subdivisions on whose account the Commission performs the audit,
and only through the appropriate agencies or officers of such States or
subdivisions. Nothing in this Article shall be construed to require any taxpayer to
keep records for any period not otherwise required by law.

7. Other arrangements made or authorized pursuant to law for cooperative
audit by or on behalf of the party States or any of their subdivisions are not
superseded or invalidated by this Article.

8. In no event shall the Commission make any charge against a taxpayer for
an audit.

9. As used in this Article, tax, in addition to the meaning ascribed to it in
Article II, means any tax or license fee imposed in whole or in part for revenue
purposes.

Article IX.

Arbitration.

1. Whenever the Commission finds a need for settling disputes concerning
apportionments and allocations by arbitration, it may adopt a regulation placing
this Article in effect, notwithstanding the provisions of Article VII.

2. The Commission shall select and maintain an Arbitration Panel composed
of officers and employees of State and local governments and private persons who
shall be knowledgeable and experienced in matters of tax law and administration.

3. Whenever a taxpayer who has elected to employ Article IV, or whenever
the laws of the party State or subdivision thereof are substantially identical with
the relevant provisions of Article IV, the taxpayer, by written notice to the
Commission and to each party State or subdivision thereof that would be affected,
may secure arbitration of an apportionment or allocation, if he is dissatisfied with
the final administrative determination of the tax agency of the State or subdivision
with respect thereto on the ground that it would subject him to double or multiple
taxation by two or more party States or subdivisions thereof. Each party State and
subdivision thereof hereby consents to the arbitration as provided herein, and
agrees to be bound thereby.

4. The Arbitration Board shall be composed of one person selected by the
taxpayer, one by the agency or agencies involved, and one member of the
Commission's Arbitration Panel. If the agencies involved are unable to agree on the
person to be selected by them, such person shall be selected by lot from the total
membership of the Arbitration Panel. The two persons selected for the Board in the
manner provided by the foregoing provisions of this paragraph shall jointly select
the third member of the Board. If they are unable to agree on the selection, the third
member shall be selected by lot from among the total membership of the
Arbitration Panel. No member of a Board selected by lot shall be qualified to serve
if he is an officer or employee or is otherwise affiliated with any party to the
arbitration proceeding. Residence within the jurisdiction of a party to the arbitration
proceeding shall not constitute affiliation within the meaning of this paragraph.

5. The Board may sit in any State or subdivision party to the proceeding, in
the State of the taxpayer's incorporation, residence or domicile, in any State where
the taxpayer does business, or in any place that it finds most appropriate for
gaining access to evidence relevant to the matter before it.

6. The Board shall give due notice of the times and places of its hearings.
The parties shall be entitled to be heard, to present evidence, and to examine and
cross-examine witnesses. The Board shall act by majority vote.

7. The Board shall have power to administer oaths, take testimony, subpoena
and require the attendance of witnesses and the production of accounts, books,
papers, records, and other documents, and issue commissions to take testimony.
Subpoenas may be signed by any member of the Board. In case of failure to obey a
subpoena, and upon application by the Board, any judge of a court of competent
jurisdiction of the State in which the Board is sitting or in which the person to whom
the subpoena is directed may be found may make an order requiring compliance
with the subpoena, and the court may punish failure to obey the order as a
contempt. The provisions of this paragraph apply only in States that have adopted
this Article.

8. Unless the parties otherwise agree the expenses and other costs of the
arbitration shall be assessed and allocated among the parties by the Board in such
manner as it may determine. The Commission shall fix a schedule of compensation
for members of Arbitration Boards and of other allowable expenses and costs. No
officer or employee of a State or local government who serves as a member of a
Board shall be entitled to compensation therefor unless he is required on account
of his service to forego the regular compensation attaching to his public
employment, but any such Board member shall be entitled to expenses.

9. The Board shall determine the disputed apportionment or allocation and
any matters necessary thereto. The determinations of the Board shall be final for
purposes of making the apportionment or allocation, but for no other purpose.

10. The Board shall file with the Commission and with each tax agency
represented in the proceeding: the determination of the Board; the Board's written
statement of its reasons therefor; the record of the Board's proceedings; and any
other documents required by the arbitration rules of the Commission to be filed.

11. The Commission shall publish the determinations of Boards together with
the statements of the reasons therefor.

12. The Commission shall adopt and publish rules of procedure and practice
and shall file a copy of such rules and of any amendment thereto with the
appropriate agency or officer in each of the party States.

13. Nothing contained herein shall prevent at any time a written compromise
of any matter or matters in dispute, if otherwise lawful, by the parties to the
arbitration proceeding.

Article X.

Entry Into Force and Withdrawal.

1. This compact shall enter into force when enacted into law by any seven
States. Thereafter, this compact shall become effective as to any other State upon
its enactment thereof. The Commission shall arrange for notification of all party
States whenever there is a new enactment of the compact.

2. Any party State may withdraw from this compact by enacting a statute
repealing the same. No withdrawal shall affect any liability already incurred by or
chargeable to a party State prior to the time of such withdrawal.

3. No proceeding commenced before an Arbitration Board prior to the
withdrawal of a State and to which the withdrawing State or any subdivision thereof
is a party shall be discontinued or terminated by the withdrawal, nor shall the Board
thereby lose jurisdiction over any of the parties to the proceeding necessary to
make a binding determination therein.

Article XI.

Effect on Other Laws and Jurisdiction.

Nothing in this compact shall be construed to:

(a) Affect the power of any State or subdivision thereof to fix rates of
taxation, except that a party State shall be obligated to implement Article III 2 of
this compact.

(b) Apply to any tax or fixed fee imposed for the registration of a motor
vehicle or any tax on motor fuel, other than a sales tax: provided that the definition
of tax in Article VIII 9 may apply for the purposes of that Article and the
Commission's powers of study and recommendation pursuant to Article VI 3 may
apply.

(c) Withdraw or limit the jurisdiction of any State or local court or
administrative officer or body with respect to any person, corporation or other
entity or subject matter, except to the extent that such jurisdiction is expressly
conferred by or pursuant to this compact upon another agency or body.

(d) Supersede or limit the jurisdiction of any court of the United States.

Article XII.

Construction and Severability.

This compact shall be liberally construed so as to effectuate the purposes
thereof. The provisions of this compact shall be severable and if any phrase, clause,
sentence or provision of this compact is declared to be contrary to the constitution
of any State or of the United States or the applicability thereof to any government,
agency, person or circumstance is held invalid, the validity of the remainder of this
compact and the applicability thereof to any government, agency, person or
circumstance shall not be affected thereby. If this compact shall be held contrary
to the constitution of any State participating therein, the compact shall remain in
full force and effect as to the remaining party States and in full force and effect as
to the State affected as to all severable matters.

Legislative History

Source: L. 68: p. 175, � 1. C.R.S. 1963: � 74-14-1. L. 2008: Art. III, par. 1 repealed, p. 953, � 2, effective January 1, 2009.