SECTION 1.  Section 2A of chapter 63 of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by striking out subsection (b) and inserting in place thereof the following subsection:

(b) if the financial institution has income from business activity which is taxable both within and without this commonwealth, its net income shall be apportioned to this commonwealth by multiplying its net income by one hundred percent of the receipts factor. 

SECTION 2.  Said section 2A of Chapter 63, as so appearing , is hereby further amended by striking out paragraph (xi) of subsection (d) and inserting in place thereof the following paragraphs:-

(xi) The numerator of the receipts factor includes receipts from services not otherwise apportioned under this section, if the gross receipts are derived from customers in this commonwealth or otherwise attributable to this commonwealth’s marketplace.

The commissioner shall promulgate regulations to implement this paragraph.

SECTION 3.  Said section 2A of Chapter 63, as so appearing, is hereby further amended by striking out paragraph (xii)(B) of subsection (d) and inserting in place thereof the following paragraph: -

(B) the numerator of the receipts factor includes the income described in paragraph (xii)(A) multiplied by a fraction, the numerator of which is the total amount included in the numerator of the receipts factor pursuant to paragraphs (iii), (iv), (vi) and (xi) and the denominator of which is the taxpayer’s total amount of (1) interest and fees or penalties in the nature of interest from loans, (2) interest and fees or penalties in the nature of interest from credit card receivables and receipts from fees charged to card holders, such as annual fees, and (3) receipts from services subject to apportionment pursuant to paragraph (xi).

SECTION 4. Section 2A of Chapter 63, as so appearing , is hereby further amended by deleting paragraphs (C), (D) and (E) of paragraph (xii) of subsection (d).

SECTION 5.  Section 38 of Chapter 63 of the General Laws, as so appearing, is hereby amended by deleting subsection (c) and replacing it with the following new subsection:-

(c) If a corporation, other than a defense corporation as described in subsection (k), a manufacturing corporation as described in subsection (l), or a mutual fund service corporation to the extent of its mutual fund sales as described in subsection (m), has income from business activity which is taxable both within and without this commonwealth, its taxable net income, as determined under the provisions of subsection (a), shall be apportioned to this commonwealth by multiplying said taxable net income by one hundred percent of the sales factor.

SECTION  6.  Said section 38 of Chapter 63 of the General Laws, as so appearing, is hereby further amended by deleting subsections (d) and (e).

SECTION 7.   Said section 38 of chapter 63, as so appearing, is hereby further amended by striking in its entirety, lines 141-220, and inserting in place thereof the following:-

Sales, other than the sales of tangible personal property, are in this commonwealth if the gross receipts are derived from customers in this commonwealth or otherwise attributable to this commonwealth’s marketplace.

For the purposes of this subsection: (1) in the case of the licensing of intangible property, the income-producing activity shall be considered to be derived from customers in this commonwealth to the extent that the intangible property is used in the commonwealth; (2) the corporation shall be considered to be taxable in the state of the purchaser if the tangible personal property is delivered or shipped to a purchaser in a foreign country; (3) sales of tangible personal property to the United States government or any agency or instrumentality thereof for purposes of resale to a foreign government or any agency or instrumentality thereof are not sales made in the commonwealth; (4) in the case of the sale, exchange or other disposition of a capital asset, as defined in paragraph (m) of section 1 of chapter 62, used in a taxpayer's trade or business, including a deemed sale or exchange of such asset, "sales'' are measured by the gain from the transaction; and (5) "security'' means any interest or instrument commonly treated as a security as well as other instruments which are customarily sold in the open market or on a recognized exchange, including, but not limited to, transferable shares of a beneficial interest in any corporation or other entity, bonds, debentures, notes, and other evidences of indebtedness, accounts receivable and notes receivable, cash and cash equivalents including foreign currencies, and repurchase and futures contracts.

Notwithstanding the foregoing, mutual fund sales by a mutual fund service corporation as defined in subsection (m), other than the sale of tangible personal property, shall be assigned to this commonwealth to the extent that shareholders of the regulated investment company are domiciled in this commonwealth as follows:

(a) by multiplying the mutual fund service corporation's total dollar amount of sales of such services on behalf of each regulated investment company by a fraction, the numerator of which shall be the average of the number of shares owned by the regulated investment company's shareholders domiciled in this commonwealth at the beginning of and at the end of the regulated investment company's taxable year that ends with or within the mutual fund service corporation's taxable year, and the denominator of which shall be the average of the number of shares owned by the regulated investment company shareholders everywhere at the beginning of and at the end of the regulated investment company's taxable year that ends with or within the mutual fund service corporation's taxable year.

(b) A separate computation shall be made to determine the sale for each regulated investment company, the sum of which shall equal the total sales assigned to the commonwealth.

SECTION 8.  Sections 1 to 7 shall be effective for tax years beginning on or after January 1, 2014.