States quickly modify apportionment provisions in reaction to changes in financial institutions industry.
The Tax Adviser › Vol. 28 Nbr. 11, November 1997
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Summary
Financial institutions who plan to expand or merge in various states must adapt their plans to the varying state treatments of apportionment of tax items, tax base, and tax rates which may differ from corporate treatment. The first step is to determine if the business is categorized in a particular state as a financial institution. Problems are mitigated in the 18 states which have adopted the Multistate Tax Commission's Uniform Method for Allocation and Apportionment of Net Income from Financial Institutions.
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Extract
States quickly modify apportionment provisions in reaction to changes in financial institutions industry.
In November 1994, the Multistate Tax Commission (MTC) adopted the "Uniform Method for Allocation and Apportionment of Net Income from Financial Institutions." With the enactment in September 1994 of the Riegle-Neal Interstate Banking and Branch Efficiency Act of 1994 (the Act), in retrospect, the adoption by the MTC of this regulation could not have been more timely.
This is primarily due to the fact that the Act and the changes it made in the banking laws have had a significant impact on the financial institutions industry. In general, with the passag...See the full content of this document
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