Income Taxes: State Formulary Apportionment Methods (Minnesota Through Wyoming) focuses on the allocation and apportionment of income on a state-by-state basis and provides a detailed discussion of the different methods the states use in various situations. In addition to identifying when a taxpayer has the right to allocate and apportion income, this Portfolio, written by Joseph X. Donovan, Sullivan & Worcester, J. Gary Dean, CPA, and Karen Nakamura, CPA, provides guidelines for determining the classification of business and nonbusiness income; the rules for sourcing nonbusiness income; the computation of the apportionment formula and its component factors; the use of alternative methods of allocation and apportionment; special industry allocation and apportionment rules; and other miscellaneous issues such as apportionment for capital stock and net worth tax purposes.
This Portfolio provides information for each state in each of the following categories:
Income Taxes: State Formulary Apportionment Methods (Minnesota Through Wyoming) allows you to benefit from:
This Portfolio is part of the Premier State Tax Library, a comprehensive series, which covers major state tax transactions and issues with expert, in-depth analysis, and offers commentary on a wide range of multi-state and state-specific taxation topics, including Sales and Use, Corporate Income, Individual Income, Property, Gross Receipts, Limitations on States' Authorities to Tax, Credits and Incentives, Electronic Commerce, Mergers and Acquisitions, Procedure and Administration, Special Industries, and more.
Detailed Analysis
1170.01. ALLOCATION AND APPORTIONMENT
A. Constitutional Background
B. Commerce Clause
C. Due Process Clause
D. Public Law 86–272
E. Definition of Terms
F. Division of the Tax Base
G. Business vs. Non–Business Income Distinction
1. Non–Business Income
2. Business Income
H. Sales Factor Introduction
1. “All–or–Nothing” or “Pro Rata” Test
2. Treatment of Receipts from the Licensing of Intangibles
I. Property Factor Introduction
J. Payroll Factor Introduction
K. Alternative Methods
L. Allocation And Apportionment For Groups Of Related Entities
1170.02. MINNESOTA
A. Division of Income
B. Business/Nonbusiness Income
C. Allocation Methods
D. Apportionment Formula
E. Sales Factor
F. Property Factor
G. Payroll Factor
H. Alternative Methods
I. Special Industries
J. Other Issues
1170.03. MISSISSIPPI
1170.04. MISSOURI
1. UDITPA
2. Optional State Method
1170.05. MONTANA
1170.06. NEBRASKA
1170.07. NEVADA
Introductory Material
A. Other Issues
1170.08. NEW HAMPSHIRE
1170.09. NEW JERSEY
1170.10. NEW MEXICO
1170.11. NEW YORK
1. Tax Years Beginning 2006
2. Tax Years Before 2006
1170.12. NORTH CAROLINA
1170.13. NORTH DAKOTA
1170.14. OHIO
1170.15. OKLAHOMA
1170.16. OREGON
1170.17. PENNSYLVANIA
1170.18. RHODE ISLAND
1170.19. SOUTH CAROLINA
1170.20. SOUTH DAKOTA
1170.21. TENNESSEE
1170.22. TEXAS
1. Net Taxable Capital
2. Earned Surplus
E. Gross Receipts Factor
1170.23. UTAH
1170.24. VERMONT
1170.25. VIRGINIA
1170.26. WEST VIRGINIA
1170.27. WISCONSIN
1170.28. WYOMING
Working Papers
Item Description Sheet
Worksheet 1 Business/Non–business Income Audit Guidelines
Worksheet 2 Corporate Income Tax Apportionment Formulas
Worksheet 3 UDITPA (Article IV of Multistate Tax Compact) Uniform Division of Income for Tax Purposes Act – Annotated
Worksheet 4 Multistate Tax Commission – Allocation and Apportionment Regulations Pertaining to Business/Nonbusiness Income
Worksheet 5 Multistate Tax Commission – Proposed Regulations on Allocation and Apportionment – Excerpts (“April 1995 Proposal”)
Worksheet 6 American Institute of Certified Public Accountants Comments Regarding Multistate Tax Commission Proposed Amendment to MTC Regulation IV.1.(a). Business and Nonbusiness Income Defined
Worksheet 7 Statement of Information Concerning Practices of Multistate Tax Commission and Signatory States Under Public Law 86–272 as Revised January 22, 1993 (Phase One Statement)
Worksheet 8 Statement of Information Concerning Practices of Multistate Tax Commission and Signatory States Under Public Law 86–272 as Adopted July 29, 1994 (Phase Two Statement)
Worksheet 9 Excerpt from BNA 2008 Survey - Throwback/Throwout Rules
Worksheet 10 State Conformity to UDITPA
Worksheet 11 State Throwback Rules
Bibliography