Type: Client Alerts
Under current Maryland law, corporate taxpayers are required to apportion income to the state using a three-factor formula with double-weighted sales. Maryland has flirted with adopting single sales factor apportionment for several years. (It has already moved to market-based sourcing for sales other than tangible personal property). In 2016, single sales factor legislation was introduced in both chambers of the General Assembly. The House passed its proposed bill, but ultimately, both bills died in the Senate. A similar bill was introduced in the Senate in 2017 but never made it out of the Senate’s Budget and Taxation Committee.