Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
Rule 26-51-709 - APPORTIONMENT - BUSINESS INCOME
Rule 1.26-51-709 - Determining Apportionment Factor
All business income of the taxpayer shall be apportioned to Arkansas by use of an apportionment formula. The apportionment formula consists of a fraction of which the numerator is the property factor plus the payroll factor plus double the sales factor and the denominator of which is four (4). A change in the law requires a double weighted sales factor for years beginning on or after 01/01/95. If the denominator is missing in one or more of the three factors, then the denominator of four must be reduced by the number of missing factors. For example, the denominator shall be the same as the number of entries, other than zero, that apply to the total (everywhere) amounts of the property, payroll and sales factors.
Examples 1 & 2 apply to tax years beginning before 01/01/95.
Examples 3 & 4 apply to tax years beginning after 01/01/95.
Example 1:
Example 2:
Example 3:
Example 4:
