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Public Policy

Chamber submits letter of support for single sales factor apportionment

On June 27, 2017, the Greater Boston Chamber of Commerce submitted testimony to the Joint Committee on Revenue in support of S.1529, An Act to promote sustainable economic development throughout Massachusetts. S.1529 would require all companies to use single sales factor apportionment (SSF) when calculating their corporate income tax liabilities. Currently, Massachusetts requires most multi-state companies to determine their tax liability based on a three-factor apportionment, which weighs the in-state sales, property, and payroll as a percentage of nationwide sales, property, and payroll. The sales factor is double weighted in Massachusetts. Under the current structure, a company’s investment in additional employees or capital in Massachusetts will result in a greater tax liability for the company. This policy runs counter to our goals of increasing in-state employment and investment, and single sales factor has the potential to make Massachusetts a more competitive place to do business because companies would not be penalized for investing here.

View the Chamber's full testimony here.