Commission aligns financial-institution taxation rule with 2025 SB 219

Commissioners voted unanimously to adopt amendments to R865-6F-32 to bring the Tax Commission's rule into alignment with statutory changes enacted by 2025 Senate Bill 219 (financial institutions tax amendments). The revisions remove rule-level definitions for terms such as "financial institution" and receipts from investment activities and instead refer directly to the statutory language for the sales-factor fraction calculation.

The presenting commissioner explained the rule change follows the legislature's direction that the numerator not include sales from investment activities while the denominator include those amounts, and that other non-substantive corrections were made. The amendment sets an effective date of Jan. 1, 2026 for the rule changes while retaining earlier effective-tax-year language for limited election purposes. The motion to adopt the amendment passed on a unanimous roll-call vote.