Bill > S1577

This bill clarifies how businesses calculate their corporate excise tax when their sales are attributed to a foreign country, specifically addressing the "throw out rule" which is a method used in sales factor apportionment. Apportionment is the process of dividing a company's total income among the different states or countries where it operates to determine how much tax it owes in each location. The bill amends existing law to ensure that sales other than those involving tangible goods (like services or intangible assets) that are assigned to a foreign country are also subject to the throw out rule, meaning those sales would be excluded from the calculation of the sales factor used for tax purposes. This clarification is intended to provide certainty for businesses regarding their tax obligations. Section 1 of the bill applies to tax years from 2014 through 2017, while Section 2 makes the change permanent for tax years beginning on or after January 1, 2018.