AN ACT RELATING TO TAXATION -- TAXATION OF BANKS

SB 3152 allows banks to choose a specific method for calculating their state tax liability based on where their business activities occur. This option lets banks allocate their income using a formula that considers receipts, property, and payroll rather than being taxed on their total income. The law also adjusts how banks handle expenses shared with related companies, requiring them to add back certain costs unless they prove the transactions were made at fair market value for legitimate business reasons. These changes take effect for tax years starting on or after January 1, 2025, and apply to both domestic and foreign financial institutions operating within the state.