Financial Institutions Work Group

Project Description

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:

Project Materials

• FIWG Agenda, December 4, 2013 and November 25, 2013
• Resolution Adopting Recommended Amendments to the Formula for the Apportionment and Allocation of Net Income of Financial Institutions
• Hearing officer report on proposed draft amendments to Formula for the Apportionment and Allocation of Net Income of Financial Institutions (July, 2014)
  • Exhibit A
  • Exhibit B
• Bank example, November 6, 2013
• Financial Institution Industry Thoughts/Reactions, January 22, 2013 (Revised April 23, 2013)
• Mathematical Exposition of Alternative Apportionment Methods – April 23, 2013
• Draft Issues List – April 19, 2013
• Revised Status Report re Financial Institutions Work Group -original status report dated February 22, 2013, revised on March 22, 2013 in response to suggestions made by Karen Boucher
• MTC Property Factor Draft – October 02, 2012
• MTC Property Factor Draft – September 27, 2012
• FI Apportionment Markup -compare August 15, 2012 with September 27, 2012
• Property Factor Issue List – August 13, 2012
• Consolidated Returns – Percent Ownership Required -May 9, 2012
• Combined Reports – Percent Ownership Required -May 9, 2012
• MTC Property Factor Draft – March 26, 2012
• Property Factor Issue List – March 26, 2012
• MTC Property Factor Draft – February 22, 2012
• Property Factor Issue List – February 22, 2012
• FI Property Factor Language – February 20, 2012
• Changes to Section 1ci8 – December 12, 2011
• Property Factor Issue List – revised November 21, 2011
• Property Factor Issue List – revised – October 19, 2011
• Property Factor Issue List – September 15, 2011
• Management Definition Draft – July 13. 2011
• MTC Property Factor Draft – July 11, 2011
• Loan Sourcing Application – June 27, 2011
• Work Group Status Memo -May 9, 2011
• FIST Revised Property Factor Draft – April, 26, 2011
• Work Group Status Memo – April 14, 2011
• DRAFT FI Apportionment Amendments – March 15, 2011
• FIST Written Comments January 2011 – February 02, 2011
• DRAFT FI Apportionment Amendments – January 14, 2011
• Supporting Document  – October 29, 2010
• DRAFT FI Apportionment Amendments – September 13, 2010
• DRAFT FI Apportionment Amendments (May, 04, 2010
• MTC FI Appt Rule with proposals – April 01, 2010
• MTC FI Appt Rule with proposals – March 14, 2010
• MTC FI Appt Rule with proposals – February 19, 2010
• Memo to Work Group – February 19, 2010
• MTC FI Appt Rule with proposals – December 21, 2009
• MTC FI Appt Rule with proposals – December 16, 2009
• MTC FI Appt Rule with proposals – October 19, 2009
• MTC FI Appt Rule with specific trust changes – October 19, 2009 (Donnita Wald)
• Definitions of Investment Banks – October 19, 2009
• Draft Amendments of Apportionment Net Income – September 22, 2009
• Draft Amendments of Apportionment Net Income – August 26, 2009
• July 2009 FI WG Memo to UC – June 22, 2009
• State FI Apportionment Policy Goals – February 21, 2009
• MTC FI Appt Rule with state proposals – February 21, 2009
• FIST Response– Comments relating to states’ conceptual policy goals for financial institution apportionment dated February 2, 2009 – February 3, 2009
• State FI Apportionment Policy Goals – February 3, 2009
• MTC FI Appt Rule with state proposals – February 3, 2009
• Idaho Response to Financial Industry Work Group Questions – October 27, 2008
• FIST Response – October 21, 2008
• ND Response – October 16, 2008
• Proposed Amendments to OR reg. – October 16, 2008
• Ann Watts Methodology- Summary Memo – September 23, 2008
• Ann Watts Summary Information by NAICS Code – September 23, 2008
• Ann Watts Outlier Information by NAICS Code – September 23, 2008
• FIST Response Trust Fees Loans in Property Factor – September 23, 2008
• Harbur MTC Financial Reg. Trust Fees Language Proposal – September 23, 2008
• Draft Trust Fee Language – August 26, 2008
• Carl Joseph draft paper on location of loans – August 26, 2008
• FIST Property Factor Paper – August 26, 2008
• Receipts Factor Spreadsheet – August 26, 2008
• NY Comments on MTC Financial Institutions Regs – August 26, 2008
• Table for Financial Information, excel
• MTC-NY comments to definitions group
• Real Estate Mortgage Investment Conduits, powerpoint
• Draft Issue List
• REMIC Revenue Procedure 08-28Fee Definitions
• CA FTB Reg. 25137-14, Apportionment of Income of Mutual Fund Service Providers and Asset Management Service Providers
• Fed Guide to the ATM and Debit Card Industry
• GAO Financial Regulation 08-32
• Industrial Loan Corporations GAO 05-621
• Interagency Statement on Purchase and Risk Management of Life Insurance
• Internet Banking: Developments and Prospects
• Technological Implications in Retail Payments
• New York Merchant Discount Statute and Regulations, State Tax Law – Applicable portion of Section 1454
• Merchant Discount, Financial Institution State Tax Coalition
• New York Credit Card Bank TSB
• Special Rule: Financial Institutions (pre-2015 version)
  • Final Hearing Officer Report
  • Supplemental Hearing Officer’s Report
  • Exhibit List

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