An Act to promote sustainable economic development throughout Massachusetts

This bill proposes changing how financial institutions are taxed in Massachusetts by shifting the calculation method to rely almost entirely on a company's receipts rather than a combination of property, payroll, and receipts. Specifically, it would increase the weight of the receipts factor from 50 percent to 83.5 percent, while significantly reducing the importance of property and payroll factors. The primary impact of this change is to alter the tax liability for banks and other financial firms that operate across state lines, as their taxable income in Massachusetts would be determined more heavily by their revenue generated within the state. Additionally, the bill allows the state tax commissioner to use alternative calculation methods if the standard formula does not accurately reflect a financial institution's actual income derived from business activities in Massachusetts.