Administrative Rules of Montana
Department 42 - REVENUE
Chapter 42.26 - CORPORATE MULTISTATE ACTIVITIES
Subchapter 42.26.2 - Income Allocation and Apportionment
Rule 42.26.211 - CONCEPT OF "SUBJECT TO" A TAX

(1) A taxpayer is "subject to" one of the taxes specified in 15-31-303, MCA, if it carries on business activities in such state and that state imposes such a tax on the taxpayer. Any taxpayer that asserts that it is subject to one of the taxes specified in 15-31-303, MCA, in another state shall furnish to the department, upon its request, evidence to support such assertion. The department may request that such evidence include proof that the taxpayer has filed the requisite tax return in the other state and has paid any taxes imposed under the law of the other state. The taxpayer's failure to produce such proof may be taken into account in determining whether the taxpayer in fact is subject to one of the taxes specified in 15-31-303, MCA, in the other state.

(2) If the taxpayer voluntarily files and pays one or more of such taxes when not required to do so by the laws of that state, or pays a minimal fee for qualification, for organization, or for the privilege of doing business in that state, but does not actually engage in business activity in that state or does actually engage in business activity, not sufficient for nexus, and the minimum tax bears no relation to the taxpayer's business activity within that state, the taxpayer is not "subject to" one of the taxes specified within the meaning of 15-31-303, MCA.