Income/Franchise:
Montana: New Law Revises Apportionment Formula by Moving to a Double-Weighted Sales Factor
S.B. 376, signed by gov. 5/11/21. Applicable to tax years beginning after June 30, 2021, new law amends Montana’s corporate income tax apportionment formula – which currently consists of equally weighted property, payroll and sales factors – by double-weighting the sales factor. Accordingly, under this new law, a taxpayer’s apportionable income must be apportioned to Montana by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus two times the receipts factor and the denominator of which is four.
See previously issued Multistate Tax Alert for more details on these provisions, and please contact us with any questions.
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