15 AAC 19.1210. Apportionment of business income

(a) Property Factor.

(1) The denominator of the property factor is the average value of all of the taxpayer's real and tangible personal property owned or rented and used during the income year.

(2) The numerator of the property factor is the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the income year. In determining the numerator of the property factor, all property except interstate mobile transportation equipment must be included in the numerator of the property factor in accordance with AS 43.19.010 , Article IV.10 - .12, and 15 AAC 19.171.

(3) The Alaska portion of interstate mobile transportation equipment for inclusion in the numerator must be determined by multiplying the total interstate mobile transportation equipment by the terminal days ratio.

(b) Payroll Factor.

(1) The denominator of the payroll factor is the total compensation paid everywhere by the taxpayer during the income year. (See AS 43.19.010 , Article IV.13 - .14 and 15 AAC 19.211 - 15 AAC 19.241.)

(2) The numerator of the payroll factor is the total amount paid in this state during the income year by the taxpayer for compensation. With respect to employees assigned to fixed locations, compensation paid to those employees must be included in the numerator as provided in AS 43.19.010 , Article IV.13 - .14, and 15 AAC 19.231 and 15 AAC 19.241. With respect to the wages of personnel assigned to interstate mobile transportation equipment, the Alaska portion of those wages must be determined by multiplying the total wages of interstate personnel by the terminal days ratio.

(1) The denominator of the sales factor equals all revenue derived from transactions and activities in the regular course of the trade or business of the taxpayer which produces business income. (See AS 43.19.010 , Article IV.1, and 15 AAC 19.011, 15 AAC 19.031, and 15 AAC 19.251.)

(2) The numerator of the revenue factor is the total revenue of the taxpayer in this state during the income year. The total revenue of the taxpayer in this state during the income year is the sum of the intrastate revenues and the Alaska portion of interstate revenues, determined by multiplying the total interstate revenues by the terminal days ratio.

History: Eff. 3/31/82, Register 81

Authority: AS 43.05.080

AS 43.19.010

AS 43.20.071 (b)

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