Administrative Rules of Montana
Department 42 - REVENUE
Chapter 42.26 - CORPORATE MULTISTATE ACTIVITIES
Subchapter 42.26.2 - Income Allocation and Apportionment
Rule 42.26.257 - SALES OTHER THAN SALES OF TANGIBLE PERSONAL PROPERTY - COSTS OF PERFORMANCE
Current through Register Vol. 6, March 22, 2024
(1) Section 15-31-311, MCA, provides for the inclusion in the numerator of the receipts factor of gross receipts from transactions other than sales of tangible personal property (including transactions with the United States government). Under this section, gross receipts are attributed to this state if the income-producing activity, which gave rise to the receipts, is performed wholly within this state. Also, gross receipts are attributed to this state if, with respect to a particular item of income, the income-producing activity is performed within and without this state but the greater proportion of the income-producing activity is performed in this state, based on costs of performance.
(2) The mere holding of intangible personal property is not, of itself, an income-producing activity.
(3) Receipts (other than from sales of tangible personal property) in respect to a particular income-producing activity are in this state if:
(4) The following are special procedures for determining when receipts from the income-producing activities described below are in this state:
(5) This rule is effective for tax years beginning before January 1, 2018. For tax years beginning after December 31, 2017, refer to [New Rule I through New Rule VI].
AUTH: 15-1-201, 15-31-313, 15-31-501, MCA; IMP: 15-1-601, 15-31-305, 15-31-310, 15-31-311, MCA