Maryland Senate Passes Single-Sales Factor Apportionment Bill

The Maryland Senate passed a bill that would change the state’s standard corporate income tax apportionment formula to a single-sales factor formula. The current standard formula is a three-factor formula (sales, property, and payroll), with a double-weighted sales factor. The following taxpayers would still be allowed to use the double-weighted sales factor formula:

  • corporations regulated by the Public Service Commission or the Federal Energy Regulatory Commission;
  • communications corporations;
  • certain corporations headquartered in Maryland; and
  • banks.

If enacted, the new standard apportionment formula would apply to tax years beginning after 2017.

S.B. 1090, passed by the Maryland Senate on March 19, 2018

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