Financial Institutions Apportionment Rule

The MTC promulgated its model Financial Institutions Apportionment Rule in 1994. Twenty states adopted the model, in whole or in part.

Project Description

Financial Institutions Work Group
 
The MTC promulgated its model Financial Institutions Apportionment Rule in 1994.  Twenty states adopted the model, in whole or in part.  In 2007, this work group was charged with reexamining the Commission’s 1994 model statute for the apportionment of income realized by financial institutions in light of the dramatic changes in the nature of that industry since then, and recommending amendments to the subcommittee. These changes were caused both by the deregulation of the industry as a result of the repeal of Glass-Steagall, and by technological innovations that allow financial institutions to provide a full range of services, such as mortgage loan and credit card application processing, credit approval and account servicing, entirely online.

Broadly speaking, the work group has worked to update three aspects of the current rule:
(1) the definition of a financial institution,
(2) the sourcing of financial institutions specific receipts, and
(3) the sourcing of financial institutions loans in the property factor.

 

Past Meeting


 

Background & Reference Information

 

 

Contents of Final Report of Hearing Officer Regarding Proposed Multistate Tax Commission
Formula for the Uniform Apportionment of Net Income from Financial Institutions 



Financial Institutions Volume 1 (362 pgs.)

Final Report of Hearing Officer Regarding Proposed Multistate Tax Commission

Formula for the Uniform Apportionment of Net Income from Financial Institutions

Financial Institutions Volume 2 (423 pgs.)

Exhibit A.  Recommended Apportionment Formula

Exhibit B.  Pre-May 10, 1990 Proceedings

Exhibit C.  Resolutions of Multistate Tax Commission Executive Committee

Exhibit D.  Notices of Public Hearings and Attendance Lists

Exhibit E.  Interim Reports of Hearing Officer

Exhibit F.  Participant Lists and Agendas: State/Industry Meeting Group (SIMS)

Exhibit G.  Agenda:  MTC/FTA Financial Institutions Business Workshop

Financial Institutions Volume 3 (458 pgs.)

Exhibit H.  Working Materials:  State Subcommittee on Apportionment of Income from Financial Services

Exhibit I.  Working Material:  State/Industry Financial Working Group (S/I FWG)

Exhibit J.  Testimony, Documents and Letters Submitted During Public Hearing Process

Financial Institutions Volume 4  (381 pgs.)

Exhibit J.  Continued

Exhibit K.  Articles, Pamphlets and Outlines

Financial Institutions Volume 5 (504 pgs.)

Exhibit K.  Continued

Financial Institutions Volume 6  (530 pgs.)

Exhibit K.  Continued

Financial Institutions Volume 7  (425 pgs.)

Exhibit L.  Statutes and Regulations

Exhibit M.  Miscellaneous

Exhibit N.  Materials Received Subsequent to Submission of Final Report of Hearing Officer But Before Bylaw VII Survey

Exhibit O.  Bylaw VII Survey of Recommendation (Missing)