HOUSE DOCKET, NO. 2902        FILED ON: 1/16/2015

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2548

 

The Commonwealth of Massachusetts

_________________

PRESENTED BY:

Randy Hunt

_________________

To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act to Clarify the Net-worth Measure of the Corporate Excise.

_______________

PETITION OF:

 

Name:

District/Address:

Date Added:

Randy Hunt

5th Barnstable

1/16/2015

David F. DeCoste

5th Plymouth

2/4/2015

Steven S. Howitt

4th Bristol

1/26/2015

Leonard Mirra

2nd Essex

2/4/2015

Mathew Muratore

1st Plymouth

2/3/2015


HOUSE DOCKET, NO. 2902        FILED ON: 1/16/2015

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2548

By Mr. Hunt of Sandwich, a petition (accompanied by bill, House, No. 2548) of Randy Hunt and others relative to the calculation of net worth in determining corporate excise taxes.   Revenue.

 

The Commonwealth of Massachusetts

 

_______________

In the One Hundred and Eighty-Ninth General Court
(2015-2016)

_______________

 

An Act to Clarify the Net-worth Measure of the Corporate Excise.

 

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.   Paragraph 8 of Section 30 of chapter 63, as amended by section 105 of chapter 165 of the acts of 2014, is hereby amended by striking out the last sentence and inserting in place thereof the following sentence:-

In determining whether an item shown on the books of a corporation is to be treated as reflecting debt or equity, the taxpayer’s treatment of the item for accounting purposes shall be considered to be controlling, unless the commissioner establishes that such treatment is not in accordance with the accounting standards used by that taxpayer for making financial reports to shareholders, such as, without limitation, generally accepted accounting principles or International Financial Reporting Standards; and in determining the book value of any asset, the commissioner may disallow any reserve, in whole or in part, established with respect thereto which, in his judgment, is not reasonable and proper.

SECTION 2.  By this act the general court clarifies its original intention that the treatment of an item on the books of a corporation shall be controlling in determining its net worth. This act shall be effective upon its passage, and shall be applicable to all open tax years.

SECTION 3: Section 38(f) of chapter 63 is hereby amended after the word “include” by adding the following phrase:-

“an item of income of a corporation that is organized outside of the United States to the extent that such item is exempt from United States federal income tax either by virtue of a federal income tax treaty or otherwise, or”