Bruce Ely Quoted in Bloomberg Tax on More Uniform State Tax Codes for Investment Partnerships

Bradley attorney Bruce Ely was quoted in Bloomberg Daily Tax Report on a Multistate Tax Commission proposal to make state tax codes more uniform and potentially boost revenue collections from so-called investment partnerships. The draft model was released last Wednesday and emphasizes uniformity and simplifications among the multistate tax group as they seek a fair share of tax revenue from the trillions of dollars they claim are flowing through investment partnerships.

Ely said the draft model act reflects principles articulated in the Alabama Investment Partnership Act of 2009 with one major exception. The Alabama law permits individuals, corporations, LLCs, decedents’ estates, family trusts and business trusts to qualify as nonresident qualified investment partners, but the MTC draft “inexplicably” limits itself to individuals. In this context, Ely explained, the MTC is limiting the exclusion accorded to nonresident investors.

“I can understand the exclusion for C corporations, but am curious as to why they excluded passive partnership entities, decedents’ estates, family trusts and business trusts,” said Ely, who helped draft the Alabama law.

The complete article, “States Float Model Law on Taxing Investment Partnerships,” was published June 8, 2022. (login required)