Session Laws

Whereas, The deferred operation of this act would tend to defeat its purpose, which is to immediately provide for the public reporting of corporate tax information and analysis of certain tax expenditures, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Subsection (b) of section 5 of chapter 29 of the General Laws, is hereby amended by striking out the paragraph added by section 5 of chapter 255 of the acts of 1992.

SECTION 2. Section twelve A of chapter sixty-two C of the General Laws, inserted by section one of said chapter two hundred and fifty-five, is hereby repealed.

SECTION 3. Subsection (b) of section 21 of said chapter 62C, as most recently amended by section 2 of said chapter 255, is hereby further amended by striking out clause (15).

SECTION 4. Section twenty-one A of said chapter sixty-two C, inserted by section three hundred and ninety-four of chapter one hundred and thirty-three of the acts of nineteen hundred and ninety-two, is hereby repealed.

SECTION 5. Said chapter 62C is hereby further amended by inserting after section 81 the following two sections:-

Section 82. (a) The commissioner annually shall prepare and publish an aggregate statistical report of taxes collected from corporations and other businesses, other than marine insurance companies, taxable under section twenty-nine A of chapter sixty-three, that are (i) taxable under any provision of chapter sixty-three and (ii) required to file a return under section eleven or twelve of this chapter.

(b) The report shall contain the following tax return information:

(1) the aggregate amount of tax collected under chapter sixty-three;

(2) the aggregate amount of each credit, deduction, exemption and exclusion allowed under chapter sixty-three that results in a tax expenditure by the commonwealth, provided that the report need not contain such information with respect to (i) any deduction, exemption, or exclusion, allowed under the Internal Revenue Code and adopted by the commonwealth, that results in a tax expenditure by the commonwealth of less than five million dollars for the calendar year to which the report relates or (ii) any credit, deduction, exemption, or exclusion, that is determined separately from any credit, deduction, exemption, or exclusion allowed under the Internal Revenue Code that results in a tax expenditure by the commonwealth of less than one million dollars for the calendar year to which the report relates.

(3) such other aggregate information as the commissioner deems appropriate.

(c) For purposes of the report, the relevant aggregate tax return information designated under subsection (b) shall be stated separately for taxpayers within each of several major industry groups determined by the commissioner. In addition, such information shall be stated separately for each of the ranges of amounts of relevant items included in the reports required under section eighty-three as such ranges are determined by the commissioner.

(d) Each report shall be based on a period of one calendar year and shall include returns for the taxable years beginning during that calendar year. The report for each period shall be issued within three calendar years of the end of such period; provided, however, that the initial report required by this section shall be issued by December thirty-first, nineteen hundred and ninety-three and shall be based on tax return information relating to taxable years beginning during the calendar year nineteen hundred and ninety. Notwithstanding any other provision of this section, information not required to be reported on Massachusetts tax returns need not be included in reports relating to taxable years beginning before January first, nineteen hundred and ninety-three, and information regarding the amount of any excess tax credit or credits subject to carry-over to future taxable years and the amount of domestic life insurance company income subject to apportionment need not be included in reports relating to taxable years beginning before January first, nineteen hundred and ninety-two.

(e) Nothing in this section shall allow or require the commissioner to disclose the identity of any taxpayer that provides tax return information included in the report required by this section.

Section 83. (a) (i) Every corporation that is required to file both a report pursuant to section thirteen or section fifteen of the Securities and Exchange Act of 1934 and successor acts and a tax return pursuant to section eleven of this chapter and (ii) every bank and every insurance company that is required to file both a report pursuant to the Securities and Exchange Act of 1934 and successor acts or Title 12 of the United States Code or under section seven of chapter one hundred and sixty-seven or section twenty-six of chapter one hundred and sixty-eight or section eighteen of chapter one hundred and seventy or section twenty-two of chapter one hundred and seventy-two or section twenty-five of chapter one hundred and seventy-five and a tax return pursuant to paragraphs (a), (d), or (e) of section twelve of this chapter shall report on March first, nineteen hundred and ninety-five and on March first of each year thereafter to the state secretary certain information as specified herein from such tax return or other document on a form prepared by the state secretary containing information as specified herein from its most recently filed tax return or other document filed on or before the prior June thirtieth. Such form shall be treated as a report for the purpose of section one hundred and twelve of chapter one hundred and fifty-six B, section nine of chapter one hundred and eighty-one, and sections seven and eight of chapter one hundred and sixty-seven and as part of the annual report for purposes of section twenty-six of chapter one hundred and seventy-five, and such report or amended report shall be maintained by the state secretary as a public record.

(b) The forms of report prepared by the state secretary shall be made available to tax payers required to report under this section no later than November first, nineteen hundred and ninety-three and on November first of each year thereafter.

(c) In the case of corporations that are required to report under this section, such form shall require the reporting of the following information, provided that where two or more corporations file a combined return of income all numerical information shall be reported on a combined basis and the names and addresses of all such corporations shall be listed:

(1) the name of the taxpayer;

(2) the location, including street address, of the principal office;

(3) gross receipts or sales, as reported on item 1 of schedule E of form 355A or 355B, or the sum of items 1 of schedule E of form 355C-A or 355C-B;

(4) either (a) gross profit, as reported on item 2 of schedule E of form 355A or 355B, or the sum of items 2 of schedule E of form 355C-A or 355C-B, or (b) any excess tax credit or credits subject to carry-over to future years, as determined by adding the amount reported on item 28 of schedule H of form 355A or 355B and the amount reported on item 25 of schedule RC of form 355A or 355B, or the sum of items 28 of schedule H of form 355C-A or 355C-B and the sum of items 30 of schedule RC-A of form 355C-A or 355C-B;

(5) income subject to apportionment, as reported on item 13 of schedule E of form 355A or 355B, or the sum of items 13 of schedule E of form 355C-A or 355C-B;

(6) income taxable in Massachusetts as reported on item 18 of schedule E of form 355A or 355B, or column g of item 18 of schedule E of form 355C-A, or 355C-B;

(7) total non-income tax excise as reported on item 3 of form 355A or 355B, or the sum of items 3 of form 355C-A or 355C-B; and

(8) the excise due, as reported on item 15 of form 355A or 355B, or the sum of items 15 of form 355C-A or 355C-B.

(d) In the case of banks required to report under this section, such form shall require the reporting of:

(1) the name of the taxpayer;

(2) the location, including street address, of the principal office;

(3) net interest income as reported on line 3 of schedule RI-Income Statement of the Report of Condition and Income filed with the federal financial institutions examination council or comparable reports filed with the office of thrift supervision;

(4) income taxable in Massachusetts as reported on item 7 on form 63 B.T.C.; and

(5) total Massachusetts excise or tax due, as reported on item 8 on form 63 B.T.C.

(e) In the case of domestic life insurance companies required to report under this section, such form shall require the reporting of:

(1) the name of the taxpayer;

(2) the location, including street address, of the principal office;

(3) gross receipts or sales as reported on the company's National Association of Insurance Commissioners Annual Statement, determined by adding the amounts reported in columns 3, 4 and 5 of line 98 of schedule T of said statement and the amounts reported on the summary of operations on lines 2 and 6 of page 4 of said statement;

(4) income subject to apportionment as reported on item 7 of schedule C of form DL-2;

(5) premiums and income taxable in Massachusetts as determined by adding (i) items 10 and 11 of part 1 of form DL-1 or item 12 of part 2 of schedule DL-1A and (ii) item 2 of form DL-2; and

(6) total Massachusetts excise or tax due as determined by adding item 8 of form DL-1 and item 4 of form DL-2.

(f) In the case of domestic property and casualty insurance companies required to report under this section, such form shall require the reporting of:

(1) the name of the taxpayer;

(2) the location, including street address, of the company's principal office;

(3) gross receipts or sales as reported on the company's National Association of Insurance Commissioners Annual Statement, determined by adding the amounts reported in columns 2 and 8 of line 98 of schedule T of said Annual Statement and the amounts reported on the Underwriting and Investment Exhibit Statement of Income on line 12 of page 4 of said Annual Statement;

(4) premiums and income taxable in Massachusetts as determined by adding item 5 of part I of form 63-22 and item 10 of part II of form 63-22; and

(5) total Massachusetts excise or tax due as reported on item 6 of form 63-22.

(g) In the case of foreign life insurance companies required to report under this section, such form shall require the reporting of:

(1) the name of the taxpayer;

(2) the location, including street address of the principal office;

(3) gross receipts or sales as reported on the company's National Association of Insurance Commissioners Annual Statement, determined by adding the amounts reported in columns 3, 4 and 5 of line 98 of schedule T of said Annual Statement and the amounts reported on the Summary of Operations on lines 2 and 6 of page 4 of said Annual Statement;

(4) premiums taxable in Massachusetts as determined by adding (i) the larger of item 7 of part 1 or column A of part 2 of form 63-20-23 and (ii) the larger of item 12 of part 1 or column B of part 2 of form 63-20-23; and

(5) total Massachusetts excise or tax due as reported on item 9 of form 63-20-23.

(h) In the case of foreign property and casualty insurance companies required to report under this section, such form shall require the reporting of:

(1) the name of the taxpayer;

(2) the location, including street address of the principal office;

(3) gross receipts or sales as reported on its National Association of Insurance Commissioners Annual Statement, determined by adding the amounts reported in columns 2 and 8 of line 98 of Schedule T of said Annual Statement and the amounts reported on the Underwriting and Investment Exhibit Statement of Income on line 12 of page 4 of said Annual Statement;

(4) premiums taxable in Massachusetts as reported on item 5 of form 63-23; and

(5) total Massachusetts excise or tax due as reported on item 10 of form 63-23.

(i) In the case of preferred provider companies required to report under this section, such form shall require the reporting of:

(1) the name of the taxpayer;

(2) the location, including street address of the principal office;

(3) gross receipts or sales as reported on line 1 of schedule A, of Internal Revenue Service form 1120-PC;

(4) income taxable in Massachusetts as reported on item 3 of form 176-I; and

(5) total Massachusetts excise or tax due as reported on item 4 of form 176-I.

(j) Any taxpayer required to report under this section which chooses to supplement the foregoing information with additional information may do so on the form provided by the state secretary.

(k) For purposes of this section, all references to tax return or other forms, schedules and items are to the Massachusetts department of revenue or other forms, schedules and items used for taxable or other reporting years beginning during calendar year nineteen hundred and ninety-one. Should any such tax return or other form, schedule or item change for any subsequent taxable year, the state secretary, in consultation with the department of revenue, shall amend the form of report to require the reporting of the amount contained in the form, schedule or item used for such subsequent year that corresponds to the form, schedule and item referenced herein.

(l) Where the amount of any item reported under this section changes, the taxpayer shall, within thirty days of the final determination of such change, file an amended report in a form prescribed by the state secretary.

(m) The state secretary shall make available for public inspection by April first, nineteen hundred and ninety-four and by April first of each year thereafter a list of all taxpayers which are required to file under subsection (a).

SECTION 6. Notwithstanding the provisions of section eighty-three of chapter sixty-two C of the General Laws, inserted by section five of this act, every corporation, bank and insurance company required to report to the state secretary pursuant to said section eighty-three, shall file an initial report in accordance with the provisions of said section eighty-three on or before December thirty-first, nineteen hundred and ninety-three.