2 State Income Tax

U.S. Tax Law Essentials · 3:09

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Lyrics

[Verse 1]
When your business spans across state lines
Income gets divided by design
UDITPA sets the framework straight
Property payroll sales allocate
Three factor formula was the way
But times are changing day by day

[Chorus]
State by state the rules divide
UDITPA helps you calculate and ride
Single sales is trending now
Market-based is taking over somehow
Combined reports for unity
State income tax complexity

[Verse 2]
Single sales factor's gaining ground
More states are coming around
Where your customers receive the goods
That's where income's understood
Market-based sourcing leads the charge
Makes your tax footprint large

[Chorus]
State by state the rules divide
UDITPA helps you calculate and ride
Single sales is trending now
Market-based is taking over somehow
Combined reports for unity
State income tax complexity

[Verse 3]
Unitary business principle says
If companies are connected threads
Combined reporting brings them all
Into one big tax protocol
Water's edge or worldwide scope
Gives tax planners room to cope

[Bridge]
Cost-of-performance used to reign
Now market-based breaks the chain
Pass-through entity tax is new
SALT cap workaround for you
Ten thousand dollar limit's tight
PTE elections make it right

[Verse 4]
Federal conformity's the game
Some states follow just the same
Others decouple and go their way
Bonus depreciation they might delay
Rolling conformity updates fast
Fixed dates make the old rules last

[Chorus]
State by state the rules divide
UDITPA helps you calculate and ride
Single sales is trending now
Market-based is taking over somehow
Combined reports for unity
State income tax complexity

[Outro]
From apportionment to PTE
Multistate tax complexity
Learn the rules and understand
State income tax across the land

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