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MTC multistate tax Commission
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An intergovernmental state tax agency whose mission is to promote uniform and consistent tax policy and administration among the states, assist taxpayers in achieving compliance with existing tax laws, and advocate for state and local sovereignty in the development of tax policy.
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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

  • FIWG Agenda, Decebmer 4, 2013 and November 25, 2013

 

Background & Reference Information

 
  • 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 (10/02/2012) 
  • MTC Property Factor Draft (9/27/2012)
  • FI Apportionment Markup (compare 8/15/2012 with 9/27/2012)
  • Property Factor Issue List - (8/13/2012)
  • Consolidated Returns - Percent Ownership Required (5/9/2012)
  • Combined Reports - Percent Ownership Required (5/9/2012)
  • MTC Property Factor Draft (3/26/2012)
  • Property Factor Issue List (3/26/2012) 
  • MTC Property Factor Draft (2/22/2012)
  • Property Factor Issue List (2/22/2012)  
  • FI Property Factor Language (2/20/2012) 
  • Changes to Section 1ci8 (12/12/2011)
  • Property Factor Issue List - revised (11/21/2011)
  • Property Factor Issue List - revised (10/19/2011)
  • Property Factor Issue List (9/15/2011)
  • Management Definition Draft (7/13/2011)
  • MTC Property Factor Draft (7/11/2011)
  • Loan Sourcing Application (6/27/2011)
  • Work Group Status Memo (5/9/2011)
  • FIST Revised Property Factor Draft (4/26/2011)
  • Work Group Status Memo (4/14/2011)
  • DRAFT FI Apportionment Amendments (3/15/2011)
  • FIST Written Comments January 2011 (2/02/2011)
  • DRAFT FI Apportionment Amendments (1/14/2011)
  • Supporting Document  (10/29/2010)
  • DRAFT FI Apportionment Amendments (9/13/2010)
  • DRAFT FI Apportionment Amendments (5/04/2010)
  • MTC FI Appt Rule with proposals (4/01/2010) 
  • MTC FI Appt Rule with proposals (3/14/2010) 
  • MTC FI Appt Rule with proposals (2/19/2010) 
  • Memo to Work Group (2/19/2010)
  • MTC FI Appt Rule with proposals (12/21/09)
  • MTC FI Appt Rule with proposals (12/16/09)
  • MTC FI Appt Rule with proposals (10/19/09)
  • MTC FI Appt Rule with specific trust changes (10/19/09)(Donnita Wald)
  • Definitions of Investment Banks (10/19/09)
  • Draft Amendments of Apportionment Net Income (09/22/09)
  • Draft Amendments of Apportionment Net Income (08/26/09)
  • July 2009 FI WG Memo to UC (06/22/09)
  • State FI Apportionment Policy Goals (02/21/09)
  • MTC FI Appt Rule with state proposals (02/21/09)
  • FIST Response- Comments relating to states’ conceptual policy goals for financial institution apportionment dated February 2, 2009 (02/03/09)
  • State FI Apportionment Policy Goals (02/03/09)
  • MTC FI Appt Rule with state proposals (02/03/09)
  • Idaho Response to Financial Industry Work Group Questions (10/27/08)
  • FIST Response (10/21/08)
  • ND Response (10/16/08)
  • Proposed Amendments to OR reg. (10/16/08)
  • Ann Watts Methodology- Summary Memo (09/23/08)
  • Ann Watts Summary Information by NAICS Code (09/23/08)
  • Ann Watts Outlier Information by NAICS Code (09/23/08)
  • FIST Response Trust Fees Loans in Property Factor (09/23/08)
  • Harbur MTC Financial Reg. Trust Fees Language Proposal (09/23/08)
  • Draft Trust Fee Language (08/26/08)
  • Carl Joseph draft paper on location of loans (08/26/08)
  • FIST Property Factor Paper (08/26/08)
  • Receipts Factor Spreadsheet (08/26/08)
  • NY Comments on MTC Financial Institutions Regs (08/26/08)
  • 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
  • Hearing in House Ways & Means Subcommittee on Select Revenue Measures -- taxation of derivatives [NOTE: This link takes you to another site]
  • 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 



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)

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