Administrative Rules of Montana
Department 42 - REVENUE
Chapter 42.26 - CORPORATE MULTISTATE ACTIVITIES
Subchapter 42.26.2 - Income Allocation and Apportionment
Rule 42.26.262 - SPECIAL COMPUTATIONS RELATED TO PROPERTY FACTOR
Universal Citation: MT Admin Rules 42.26.262
Current through Register Vol. 6, March 22, 2024
(1) The following special rules are established in respect to the property factor of the apportionment formula:
(a) If the sub-rents taken into account in
determining the net annual rental rate under ARM
42.26.236 produce a negative or
clearly inaccurate value for any item of property, another method which will
properly reflect the value of rented property may be required by the department
or requested by the taxpayer.
(b)
In no case, however, shall such value be less than an amount which bears the
same ratio to the annual rental rate paid by the taxpayer for such property as
the fair market value of that portion of the property used by the taxpayer
bears to the total fair market value of the rented property.
(2) If property owned by others is used by the taxpayer at no charge or rented by the taxpayer for a nominal rate, the net annual rental rate for such property shall be determined on the basis of a reasonable market rental rate for such property.
15-1-201, 15-31-313, 15-31-501, MCA;
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