Bill > H2518

This bill proposes changes to the taxation and calculation of the net income of certain business corporations in Massachusetts. The key provisions are: 1. It modifies the apportionment formula used to determine the portion of a financial institution's net income that is taxable in Massachusetts, adjusting the weights of the property, payroll, and receipts factors over several years. 2. It changes the apportionment formula for non-financial business corporations, moving from a formula based on property, payroll, and sales factors to one based solely on the sales factor. 3. It provides specific rules for assigning sales of certain types of services, such as management, distribution, and administration services to regulated investment companies, based on the domicile of the company's shareholders. 4. It allows the Massachusetts Commissioner of Revenue to adopt alternative apportionment methods for certain industries if the standard formulas are not reasonably adapted to approximating the net income derived from business carried on within the state. The changes are to be phased in over several years, with the most significant revisions taking effect for tax years beginning in 2023.

Budget and Finance

https://malegislature.gov/Bills/191/H2518