Maryland Legislature Sends Single-Sales Factor Bill to Governor

The Maryland General Assembly passed bill that would phase-in use of a single-sales factor apportionment formula for corporate taxpayers.

Single-Sales Factor Apportionment Formula

Beginning with the 2018 tax year, the sales factor would carry more weight each year in the standard apportionment formula. Then, beginning with the 2022 tax year, the state would use a single-sales factor formula as its standard apportionment formula.

Certain corporations headquartered in Maryland would still be allowed to use the current double-weighted sales factor formula. In addition, manufacturers would continue to use a single-sales factor formula.

Current Apportionment Formula

The current standard formula is a three-factor formula (sales, property, and payroll), with a double-weighted sales factor. However, certain manufacturers currently must use a single-sales factor formula.

S.B. 1090, passed by the Maryland General Assembly on April 9, 2018

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