Bill > S1529

This bill proposes to promote sustainable economic development throughout Massachusetts. The key provisions of the bill include: 1. Changing the apportionment formula for financial institutions to be based primarily on the receipts factor, rather than a combination of property, payroll, and receipts factors. This change is phased in over several years. 2. Revising the apportionment formula for corporations more broadly to be based solely on the sales factor, rather than a combination of property, payroll, and sales factors. This change is also phased in over several years. 3. Providing specific guidelines for how to source various types of sales (e.g., sales of tangible personal property, sales of services, sales of intangible property) for the purposes of the sales factor. 4. Establishing rules for how to handle situations where one or more of the apportionment factors is missing or insignificant. 5. Specifying how to apportion receipts from providing management, distribution, or administrative services to regulated investment companies (mutual funds). The bill is aimed at updating Massachusetts' corporate tax apportionment rules to better reflect the modern economy and ensure that a company's net income is appropriately attributed to business activities conducted within the state.

Budget and Finance

https://malegislature.gov/Bills/190/S1529