2006 Utah Code - 59-7-311 — Method of apportionment of business income.

     59-7-311.   Method of apportionment of business income.
     (1) All business income shall be apportioned to this state by multiplying the business income by a fraction calculated as provided in Subsection (2).
     (2) The fraction described in Subsection (1) is calculated as follows:
     (a) for a taxpayer that does not make an election authorized by Subsection (3):
     (i) the numerator of the fraction is the sum of:
     (A) the property factor as calculated under Section 59-7-312;
     (B) the payroll factor as calculated under Section 59-7-315; and
     (C) the sales factor as calculated under Section 59-7-317; and
     (ii) the denominator of the fraction is three; and
     (b) for a taxpayer that makes an election authorized by Subsection (3):
     (i) the numerator of the fraction is the sum of:
     (A) the property factor as calculated under Section 59-7-312;
     (B) the payroll factor as calculated under Section 59-7-315; and
     (C) the product of:
     (I) the sales factor as calculated under Section 59-7-317; and
     (II) two; and
     (ii) the denominator of the fraction is four.
     (3) (a) For purposes of Subsection (2) and subject to Subsection (3)(b), for taxable years beginning on or after January 1, 2006, a taxpayer may elect to calculate the fraction for apportioning business income under this section in accordance with Subsection (2)(b).
     (b) If a taxpayer makes the election described in Subsection (3)(a), the taxpayer may not revoke the election for a period of five taxable years.
     (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the commission may make rules providing procedures for a taxpayer to make the election described in Subsection (3)(a).

Amended by Chapter 225, 2005 General Session