AN ACT RELATING TO TAXATION -- TAXATION OF BANKS

This bill updates the rules for how banks calculate their state tax liability when they earn income from both inside and outside the state. Starting with tax years beginning on or after January 1, 2025, it allows banks to choose a simpler method that taxes them based solely on their receipts from in-state business, replacing the previous requirement to average receipts, property, and payroll factors. Banks that do not make this election will continue to use the standard three-factor formula, while the law also provides options for both banks and tax officials to use alternative calculation methods if the standard rules do not fairly represent a bank's actual business activity within the state.