2006 Utah Code - 59-7-319 — Sales of items other than tangible personal property -- When deemed to occur in this state.

     59-7-319.   Sales of items other than tangible personal property -- When deemed to occur in this state.
     (1) Sales, other than sales of tangible personal property, are in this state if:
     (a) the income-producing activity is performed in this state; or
     (b) the income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance.
     (2) Notwithstanding Subsection (1), sales, other than sales of tangible personal property, derived, directly or indirectly, from the sale of management, distribution, or administration services to, or on behalf of a regulated investment company, as defined in Section 851(a) of the Internal Revenue Code of 1986, including trustees or sponsors of employee benefit plans which have accounts in a regulated investment company, shall be assigned to this state to the extent that shareholders of the investment company are domiciled in the state as follows:
     (a) by multiplying the taxpayer's total dollar amount of sales of such services by a fraction, the numerator of which is the average of the sum of the beginning of the year and the end of year balance of shares owned by the investment company shareholders domiciled in this state; and the denominator of which is the average of the sum of the beginning of the year and end of year balance of shares owned by the investment company shareholders.
     (b) A separate computation shall be made to determine the sales for each investment company.
     (3) (a) Notwithstanding Subsection (1), the following sales shall be assigned to the state to the extent that customers of a securities brokerage business are domiciled in the state:
     (i) sales, other than sales of tangible personal property, derived, directly or indirectly, from the sale of securities brokerage services by a taxpayer which in this state is primarily engaged in providing services to a regulated investment company as described in Subsection (2); or
     (ii) sales, other than sales of tangible personal property, derived, directly or indirectly from the sale of securities brokerage services by a taxpayer which is an affiliate of a taxpayer which, in this state, provides services to a regulated investment company as described in Subsection (2).
     (b) This assignment of sales shall be determined as follows: by multiplying the taxpayer's total dollar amount of sales of securities brokerage services by a fraction, the numerator of which is the receipts from securities brokerage services from customers of the taxpayer domiciled in this state, and the denominator of which is the receipts from securities brokerage services from all customers of the taxpayer.

Amended by Chapter 165, 1992 General Session