1. (1) Public Law 86-272, 15 USC 381-384 (hereafter P.L. 86-272) , restricts a state from imposing a net income tax on income derived within its borders from interstate commerce if the only business activity of the company within the state consists of the solicitation of orders from sales of tangible personal property, which orders are to be sent outside the state for acceptance or rejection, and, if accepted, are filled by shipment or delivery from a point outside the state. If any sales are made into a state that is precluded by P.L. 86-272 from taxing the income of the seller, such sales remain subject to throwback to the appropriate state that does have jurisdiction to impose its net income tax upon the income derived from those sales.

Authorizing statute(s): Sec. 15-1-201 and 15-31-313, MCA

Implementing statute(s): Sec. 15-1-601, 15-31-301, 15-31-302, 15-31-303, 15-31-304, 15-31-305, 15-31-306, 15-31-307, 15-31-308, 15-31-309, 15-31-310, 15-31-311, and 15-31-312, MCA

History: NEW, 2004 MAR p. 1035, Eff. 4/23/04.