Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.08 - Banks and Similar Institutions › Section 03.04.08.04 - Receipts Factor

Current through Register Vol. 51, No. 14, July 12, 2024
A. The receipts factor is a fraction, the numerator of which is the receipts of the taxpayer in this State during the taxable year and the denominator of which is the receipts of the taxpayer within and without this State during the taxable year. The method of calculating receipts for purposes of the denominator is the same as the method used in determining receipts for purposes of the numerator. The receipts factor shall include only those receipts described in this regulation and which are included in the computation of the apportionable income base for the taxable year.
B. The numerator of the receipts factor shall include:
(1) Receipts from the lease or rental of real property owned by the taxpayer if the property is located within this State or receipts from the sublease of real property if the property is located within this State;
(2) Receipts from the lease of tangible personal property, as described in §C of this regulation;
(3) Interest from loans secured by real property, as described in §D of this regulation;
(4) Interest and fees or penalties in the nature of interest from loans not secured by real property if the borrower is located in this State;
(5) Net gains from the sale of loans, as described in §E of this regulation;
(6) Interest and fees or penalties in the nature of interest from credit card receivables and receipts from fees charged to card holders, such as annual fees, if the billing address of the card holder is in this State;
(7) Net gains, but not less than zero, from the sale of credit card receivables multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to §B(6) of this regulation and the denominator of which is the taxpayer's total amount of interest and fees or penalties in the nature of interest from credit card receivables and fees charged to card holders;
(8) Credit card issuer's reimbursement fees multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to §B(6) of this regulation and the denominator of which is the taxpayer's total amount of interest and fees or penalties in the nature of interest from credit card receivables and fees charged to card holders;
(9) Receipts from merchant discount if the commercial domicile of the merchant is in this State, with the receipts computed net of any card holder charge backs, but not reduced by any interchange transaction fees or by any issuer's reimbursement fees paid to another for charges made by its card holders;
(10) Loan servicing fees, as described in §F of this regulation;
(11) Receipts from services not otherwise apportioned under this section if the service is performed:
(a) In this State,
(b) Both within and without this State, the numerator of the receipts factor includes receipts from services not otherwise apportioned under this section, if a greater proportion of the income-producing activity is performed in this State than in any other state, based on cost of performance;
(12) Receipts from investment assets and activities and trading assets and activities, as described in §G of this regulation.