Bill > S1796

This bill aims to close the "single sales factor" tax loophole. Specifically, it amends the state's corporate tax law (Chapter 63 of the General Laws) to change the formula for apportioning the taxable income of corporations that have business activity both within and outside the state. The new formula would give equal weight to a corporation's property, payroll, and sales factors, rather than solely relying on its sales factor. The bill also removes certain provisions related to "defense corporations" and "manufacturing corporations" that had previously allowed them to use a different apportionment formula. The overall effect is to require these corporations to pay a higher percentage of their total income in state taxes.

Budget and Finance

https://malegislature.gov/Bills/193/S1796