SENATE DOCKET, NO. 872        FILED ON: 1/16/2019

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1647

 

The Commonwealth of Massachusetts

_________________

PRESENTED BY:

James B. Eldridge

_________________

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 closing the single sales factor tax loophole.

_______________

PETITION OF:

 

Name:

District/Address:

 

James B. Eldridge

Middlesex and Worcester

 

Denise Provost

27th Middlesex

1/31/2019

Mary S. Keefe

15th Worcester

2/1/2019

Sal N. DiDomenico

Middlesex and Suffolk

2/1/2019

Angelo M. Scaccia

14th Suffolk

2/1/2019


SENATE DOCKET, NO. 872        FILED ON: 1/16/2019

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1647

By Mr. Eldridge, a petition (accompanied by bill, Senate, No. 1647) of James B. Eldridge, Denise Provost, Mary S. Keefe, Sal N. DiDomenico and others for legislation to close the single sales factor tax loophole.  Revenue.

 

The Commonwealth of Massachusetts

 

_______________

In the One Hundred and Ninety-First General Court
(2019-2020)

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An Act closing the single sales factor tax loophole.

 

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. Section 38 of chapter 63 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out subsection (c) and inserting in place thereof the following subsection:-

(c) If a corporation, other than a defense corporation as described in subsection (k) or a manufacturing corporation as described in subsection (l), 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 a fraction, the numerator of which is the property factor plus the payroll factor plus twice times the sales factor, and the denominator of which is four.

SECTION 2. Subsection (f) of section 38 of chapter 63 of the General Laws, as so appearing, is hereby amended by striking out the sixth paragraph.

SECTION 3. Section 38 of chapter 63 of the General Laws, as so appearing, is hereby further amended by striking out subsections (m) and (n) and inserting in place thereof the following subsection:-

(m) In any case in which a purchasing corporation makes an election under section 338 of the Code, the target corporation shall be treated as having sold its assets for purposes of this section.