§ 44-11-14.3 - Credit card banks – Allocation and apportionment of income. - Rhode Island Statutes

SECTION 44-11-14.3

   § 44-11-14.3  Credit card banks –Allocation and apportionment of income. – Notwithstanding any other provisions of the general laws, any bankinginstitution whose business activities are taxable within and outside of thisstate and whose activities are limited to those described in Section 2(c)(2)(F)of the Bank Holding Company Act (12 U.S.C. § 1841(c)(2)(F)) may elect theallocation and apportionment method for the taxpayer's net income provided forin this section. The election, if made, shall be irrevocable for successiveperiods of five (5) years. All net income derived directly or indirectly fromthe banking institution shall be apportioned to Rhode Island only to the extentthat customers of the taxpayer are domiciled in Rhode Island. The portion ofnet income apportioned to Rhode Island shall be determined by multiplying thetotal net income from the sale of the services by a fraction determined in thefollowing manner:

   (1) The numerator of the fraction shall be the income derivedfrom accounts owned by customers domiciled in Rhode Island for the bankinginstitution's taxable year; and

   (2) The denominator of the fraction shall be income derivedfrom accounts owned by all of the banking institution's customers for the sametaxable year.