SD 2068 Massachusetts Senate · 193rd Legislature (2023-2024)

An Act relative to single sales factor

This bill modifies how financial institutions in Massachusetts calculate their state tax liability by simplifying the formula used to determine taxable income. Instead of using a complex multi-factor apportionment method, the legislation requires that a financial institution's net income be taxed based solely on its receipts factor, which is derived from its total business receipts. The law also clarifies how investment and trading income should be attributed to the state and provides a process for financial institutions to request an alternative calculation method if the standard formula does not accurately reflect their local business activity. These changes directly affect banks and other financial entities operating in the Commonwealth by altering the specific mathematical approach used to assess their corporate income taxes.
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P
Photo of Mike Moore
Mike Moore
DDemocratic
MA
Second Worcester