Interstate Taxation of Depositories Act of 1979

Interstate Taxation of Depositories Act of 1979 - Title I: Jurisdiction to Tax - Allows States and political subdivisions to impose a doing-business tax only on a depository bank which has a business location in the State or political subdivision during the taxable year.

Title II: Maximum Percentage of Income, Receipts, or Capital Attributable to Taxing Jurisdiction - Sets forth an optional formula for apportioning such interstate tax, whereby a State may not impose, for any taxable year on a depository taxable in more than one State, a doing-business tax measured by an amount of net income, gross receipts, or capital in excess of the amount determined by multiplying the depository's base by an apportionment fraction; the numerator of which is the sum of the payroll factor and the receipts factor and the denominator of which is two.

Provides that a depository may be taxed in more than one State if the requisite jurisdiction exists. Allows States to require combined reporting, including the combined base and apportionment factors of all corporations affiliated with such depository. Sets forth exceptions to this reporting requirement, including corporations incorporated outside of the United States.

Defines the payroll and receipts factors which constitute the apportionment fraction.

Excludes from net income and gross receipts: (1) dividends received from a corporation in which such depository owns at least 80 percent of the voting stock; or (2) all income which is considered income from sources outside the United States. Excludes from the capital of a depository investments in, and advancements to, affiliated corporations.

Title III: Definitions and Miscellaneous Provisions - Defines the terms used in this Act. Prohibits discriminatory imposition of a doing-business tax on specified depositories.