Bill > H2664

This bill amends Chapter 63 of the General Laws, specifically Section 39, concerning the corporate excise tax, which is a tax levied on businesses operating within the commonwealth. The bill clarifies that every business corporation organized, qualified, or doing business in the commonwealth, or owning or using property there, must pay an excise tax based on either its net income or a flat fee, whichever is greater. The bill details what constitutes "doing business" to include any act, power, right, privilege, or immunity exercised in the commonwealth, as well as buying or selling services or property. It also specifies the tax rates on net income for various tax years, with a gradual decrease from 9.5% for tax years before January 1, 2010, down to 8.0% for tax years beginning on or after January 1, 2012. Additionally, it sets a flat excise fee of $456. The bill provides an exemption from the net income tax for businesses selling tangible personal property if federal law or the U.S. Constitution prohibits such taxation, unless the business stores property in a licensed public warehouse, in which case they are subject to the flat fee.