| It is important to remember that Massachusetts taxes bank interest at two different rates--a lower rates for Massachusetts banks, and a higher one for out of state banks. There is also a (small) exemption for Massachusetts bank interest.
The Mass Dept of Revenue has told me over the phone that if you can walk into a branch, then it is a Massachusetts bank. So, for example, E*Trade Bank is a Massachusetts bank because they do have a branch location in this state (one branch in Boston).
Hope that helps. |