North Dakota Administrative Code
Title 81 - Tax Commissioner
Article 81-03 - Income Taxes and Privilege Taxes Based on Income
Chapter 81-03-05.2 - Water's Edge Method
Section 81-03-05.2-02 - Water's edge election

2. A water's edge election is made when each taxpayer in the unitary group checks the water's edge box on its original North Dakota income tax return for the first year to which the election applies.

3. If a water's edge taxpayer files a consolidated water's edge return, the election made on that return shall apply to all members of the water's edge group included in that return.

4. An affiliated corporation is considered to have consented to a water's edge election if the corporation becomes a member of the group after the group elects to use the water's edge method.