NMSA 1978, § 7-5-1 — Compact enacted and entered into

The "Multistate Tax Compact" is enacted into law and entered into with all
jurisdictions legally joining therein, in the form substantially as follows:
"MULTISTATE TAX COMPACT
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; and

# 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, that 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 that 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 that is required by state or local law to be separately stated from the sales
price by the seller, or that 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, that: (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; and

# 9.

"tax" means an income tax, capital stock tax, gross receipts tax, sales tax, use
tax, and any other tax that 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 of this compact;
Article III. Elements of Income Tax Laws.
1. Each party state or any subdivision thereof that 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.
2. 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) that 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; and
(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 that 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 the
taxpayer's 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 the taxpayer's
income from activities subject to this article, the taxpayer may elect to allocate and
apportion the taxpayer's 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, the taxpayer 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 the purchaser 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 the attorney
general's 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 chair, a
vice chair and a treasurer. The commission shall appoint an executive director who
shall serve at its pleasure, and it shall fix the executive director's 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 chair, vice chair, 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; and
(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) of this article, 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; and
(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, the person may be required to
attend for such purpose at any time and place fixed by the commission within the state
of which the person 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
of this compact, 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 of this compact.
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 of this compact, 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 the taxpayer 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 the taxpayer 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 the member 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 the member is required on account of the
member's service to forego the regular compensation attaching to the member's 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 the
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 1 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 of this compact may apply for the purposes of that article and the
commission's powers of study and recommendation pursuant to Article VI 3 of this
compact 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; and
(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."