Movement toward destination taxation has been the most significant change in recent state corporation income tax (CIT) policy. This paper explores these changes on both economic activity and CIT revenue. The paper shows that some expansions of destination taxation have tended to increase economic activity as well as CIT revenue, although the positive effect diminishes as state size grows. Increasing the sales factor weight expands manufacturing production within a state; however, it does not have a significant impact on the service sector. In general, the effects of destination versus origin taxation depend on the specific ways in which they are imposed.