Bill > H2609

This bill proposes changes to the taxation and calculation of the net income of certain business corporations in Massachusetts. The key provisions include: - Modifying the apportionment formula for determining the net income of financial institutions taxable in Massachusetts, shifting the weighting of the property, payroll, and receipts factors over several years. - Revising the apportionment formula for determining the taxable net income of other business corporations, moving to a single-sales factor approach. - Providing special rules for apportioning the net income of mutual fund service providers based on the domicile of the regulated investment company's shareholders. - Allowing the state tax commissioner to adopt alternative apportionment methods for certain industries if the standard formulas are not reasonably adapted to approximate the net income derived from business within the state. - The changes are phased in over several years, with the single-sales factor approach for all businesses taking effect for tax years beginning on or after January 1, 2021.

Budget and Finance

https://malegislature.gov/Bills/190/H2609