Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
Rule 26-51-717 - SALES FACTOR
Rule 1.26-51-717 - Other than Tangible Personal Property
Current through Register Vol. 49, No. 9, September, 2024
Gross receipts from transactions other than sales of tangible personal property are attributed to Arkansas if:
1. The income producing activity is performed entirely within Arkansas; or
2. The income producing activity is performed both inside and outside of Arkansas, in which event the portion of income reportable to Arkansas shall be the percentage that is used in the formula for apportioning income to Arkansas during the year of the sale.
The term "income producing activity" applies to each separate item of income and means the transactions and activity directly engaged in by the taxpayer, or by anyone acting on the taxpayer's behalf, in the regular course of its trade or business for the ultimate purpose of obtaining gains or profit. Accordingly, income producing activity includes, but is not limited to, the following:
1. The rendering of personal services by employees or the utilization of tangible and intangible property by the taxpayer in performing a service;
2. The sale, rental, leasing, licensing or other use of real property;
3. The rental, leasing, licensing or other use of tangible personal property; or
4. The sale, licensing or other use of intangible personal property.
The mere holding of intangible personal property is not, of itself, an income producing activity.
