Close
Close

Massachusetts Supreme Judicial Court upholds constitutionality of financial institution excise tax apportionment rules

The Massachusetts Supreme Judicial Court has reaffirmed its decision that the state’s apportionment of loan income did not violate the internal consistency test of the dormant Commerce Clause of the U.S. Constitution. Specifically, at issue were the state’s requirements to determine the situs of loans when computing the property factor for financial institution excise tax apportionment purposes. The decision followed a remand from the U.S. Supreme Court to reconsider the case in light of its subsequent decision in Comptroller of the Treasury. v. Wynne.

Download the PDF.