Bill > S1403

This bill establishes an elective single sales factor apportionment method for Massachusetts corporations, allowing them to choose how their income is taxed if it's subject to taxes both within and outside the state. Currently, corporations calculate their tax liability based on a combination of their property, payroll, and sales factors, with sales typically weighted twice as much. This bill introduces an option for corporations to gradually shift towards a system where only their sales factor determines the portion of income taxed in Massachusetts, starting with a 60% sales factor in 2015 and reaching 100% by 2019. This change aims to encourage businesses to operate and invest in Massachusetts by potentially reducing their tax burden if their sales within the state are a significant portion of their total sales. The bill also makes specific adjustments to how receipts are sourced for financial institutions and other business corporations when they elect this single sales factor method.