Alaska Administrative Code

If a particular trade or business is carried on by a taxpayer and one or more affiliated corporations, nothing in AS 43.19.010, Article IV, or in these regulations precludes the use of a "combined report" by which the entire business income of that trade or business is apportione…

Any taxpayer subject to the taxing jurisdiction of this state shall allocate all of its nonbusiness income or loss within or outside of this state in accordance with AS 43.19.010, Article IV.4 - IV.8. Notes 15 AAC 19.081 Eff. 5/24/78, Register 66 Authority:AS 43.05.080 AS 43.19.0…

(a) In filing returns with this state, if the taxpayer departs from or modifies the manner in which income has been classified as business income or nonbusiness income in returns for prior years, the taxpayer shall disclose in the return for the current year the nature and extent…

(a) A taxpayer is subject to the allocation and apportionment provisions of this chapter if it has income from business activity that is taxable both within and outside of this state. A taxpayer's income from business activity is taxable outside of this state if the taxpayer, by …

If an airline has income from sources both within and outside this state, the amount of business income from sources within this state must be determined in accordance with 15 AAC 19.1100 - 15 AAC 19.1190. In such cases, the first step is to determine which portion of the airline…

(a) A taxpayer is "subject to" one of the taxes specified in 15 AAC 19.101(a) if it carries on business activity in that state and that state imposes such a tax on that activity. Any taxpayer which asserts that it is subject to one of the taxes specified in 15 AAC 19.101(a) in an…

(a) Property Factor. (1) The property factor includes the value of all owned and rented aircraft. The use of the taxpayer's owned or rented aircraft in an exchange program with another air carrier does not constitute a rental or subrental, whichever the case may be, of that aircr…

The taxpayer must maintain the records necessary to arrive at "ground time" as defined in 15 AAC 19.1190, which records are subject to review by the department. Notes 15 AAC 19.1120 Eff. 3/31/82, Register 81 In 2012 the revisor of statutes, acting under AS 01.05.031, renumbered f…

(a) "Ground time" for air carriers means all time spent on the ground while loading and unloading passengers, freight, mail, or operating supplies, or during refueling operations, and does not include periods when the aircraft is (1) not being loaded or unloaded; (2) not in servi…

If a land transportation carrier has income from sources both within and outside this state, the amount of business income from sources within this state must be determined in accordance with 15 AAC 19.1200 - 15 AAC 19.1290. In such cases, the first step is to determine which por…

The second test, that of the state having jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not, applies if the taxpayer's business activity is sufficient to give the state jurisdiction to impose a net income tax by re…

(a) Property Factor. (1) The denominator of the property factor is the average value of all of the taxpayer's real and tangible personal property owned or rented and used during the income year. (2) The numerator of the property factor is the average value of the taxpayer's real …

The taxpayer must maintain the records necessary to arrive at "days spent in terminals" as defined in 15 AAC 19.1290, which records are subject to review by the department. Notes 15 AAC 19.1220 Eff. 3/31/82, Register 81 In 2012 the revisor of statutes, acting under AS 01.05.031, …

In 15 AAC 19.1200 - 15 AAC 19.1290 (1) "terminal" means any location where goods transported are loaded on or unloaded from interstate mobile transportation equipment; (2) "days spent in terminals" refers to hours spent in terminals by mobile transportation equipment, and is comp…

If a construction contractor is performing long-term contracts and is engaged in business both within and outside this state, the amount of income from sources within this state, including income from those long-term contracts, must be determined in accordance with 15 AAC 19.1300…

All business income of each trade or business of the taxpayer shall be apportioned to this state by use of the apportionment formula set forth in AS 43.19.010, Article IV.9. The elements of the apportionment formula are the property factor (see 15 AAC 19.141 - 15 AAC 19.202), the…

A construction contractor's business income must be apportioned to this state by either the apportionment formula described in 15 AAC 19.1320 or the formula described in 15 AAC 19.1330. Notes 15 AAC 19.1310 Eff. 1/12/83, Register 85; am 9/26/84, Register 91 In 2012 the revisor of…

The apportionment formula for a taxpayer reporting income under the percentage of completion method is a fraction (1) the numerator of which is the sum of (A) the property factor as defined in AS 43.19.010, Article IV.10 -.12, and 15 AAC 19.141 - 15 AAC 19.202; (B) the payroll fa…

(a) The apportionment formula for a taxpayer reporting income under the completed contract method is a fraction(1) the numerator of which is the sum of(A) the property factor as defined in AS 43.19.010, Article IV.10 -.12, and 15 AAC 19.141 - 15 AAC 19.202, and modified under (b)…

In 15 AAC 19.1300 - 15 AAC 19.1390 (1) "construction contractor" means a person who undertakes or offers to perform to construct, alter, repair, move, or demolish, including excavation and site development, a highway, building, road, railroad, or any type of fixed structures; (2)…

(a) The property factor of the apportionment formula for each trade or business of the taxpayer must include all real and tangible personal property owned or rented by the taxpayer and used during the tax period in the regular course of that trade or business. The term "real and …

(a) A water transportation carrier shall use a days-spent-in-port ratio computed under this section to attribute to the numerators calculated under 15 AAC 19.1420 - 15 AAC 19.1440 a portion of the total property, payroll, and sales of each ship that the taxpayer uses in Alaska mo…

(a) For a water transportation carrier, the numerator of the property factor is the sum of (1) the value, determined under AS 43.19 as modified by AS 43.20.144(e) where applicable, of in-state property other than property used in Alaska mobile property operations described in (2)…

(a) For a water transportation carrier, the numerator of the payroll factor is the sum of (1) the compensation paid to employees assigned to locations within the state determined under AS 43.19; and (2) the total year's compensation paid to the crew, master, and officers of each …

(a) For a water transportation carrier, the numerator of the sales factor is the sum of (1) the in-state gross receipts, determined under AS 43.19 as modified by AS 43.20.144(d) where applicable, that are not from Alaska mobile property operations; and (2) the tax year's gross re…

A water transportation carrier that is subject to 15 AAC 20.300(c) shall use 25 AAC 19.1410 - 15 AAC 19.1490 to calculate the portion of its property and sales numerators attributable to Alaska mobile property operations. Notes 15 AAC 19.1450 Eff. 8/8/2007, Register 183 In 2012 t…

(a) This section applies to determine(1) which of the taxpayer's affiliates, that are engaged in international mobile property operations, meet the 20 percent United States factor test under AS 43.20.145(a)(1)(A) and (4) and must be included in the taxpayer's water's edge combine…

(a) A taxpayer engaged in Alaska mobile property operations that are subject to AS 43.20.145 shall prepare, maintain, and provide to the department upon request documents necessary to verify the taxpayer's numerators calculated under 15 AAC 19.1420 - 15 AAC 19.1440, and documents…

In 15 AAC 19.1410 - 15 AAC 19.1490, unless the context requires otherwise, (1) "Alaska mobile property operations" means (A) transporting goods or persons by ship or barge between a port outside the state and a port within the state; or (B) leasing out or chartering out ships, or…

(a) Property must be included in the property factor if it is actually used or is available for or capable of being used during the tax period in the regular course of the trade or business of the taxpayer. Property held as reserves or standby facilities or property held as a res…

(a) In filing returns with this state, if the taxpayer departs from or modifies the manner of valuing property or of excluding or including property in the property factor used in returns for prior years, the taxpayer shall disclose in the return for the current year the nature a…

(a) The numerator of the property factor must include the average value of the real and tangible personal property owned or rented by the taxpayer and used in this state during the tax period in the regular course of the trade or business of the taxpayer. (b) Property in transit …

(a) Property owned by the taxpayer must be valued at its original cost. As a general rule, "original cost" is considered to be the basis of the property for federal income tax purposes (before any federal adjustments) at the time of acquisition by the taxpayer and adjusted by sub…

(a) Property rented by the taxpayer must be valued at eight times its net annual rental rate. The net annual rental rate for any item of rented property is the annual rental rate paid by the taxpayer for that property, less the aggregate annual subrental rates paid by subtenants …

As a general rule, the average value of property owned by the taxpayer shall be determined by averaging the values at the beginning and ending of the tax period. However, the commissioner will, in his discretion, require or allow averaging by monthly values if that method of aver…

(a) If the subrents taken into account in determining the net annual rental rate under 15 AAC 19.191 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 commissione…

(a) The payroll factor of the apportionment formula for each trade or business of the taxpayer must include the total amount paid by the taxpayer in the regular course of its trade or business for compensation during the tax period. (b) The total amount "paid" to employees is det…

The denominator of the payroll factor is the total compensation paid everywhere during the tax period. Accordingly, compensation paid to employees whose services are performed entirely in a state where the taxpayer is immune from taxation, for example, by Public Law 86-272, is in…

The numerator of the payroll factor is the total amount paid in this state during the tax period by the taxpayer for compensation. The tests in AS 43.19.010, Article IV.14, to be applied in determining whether compensation is paid in this state, are derived from the Model Unemplo…

(a) Compensation is paid in this state if any one of the following tests, applied consecutively, is met:(1) the employee's service is performed entirely within this state; (2) the employee's service is performed both within and outside of the state, but the service performed outs…

(a)AS 43.19.010, Article IV.1.(g), defines the term "sales" to mean all gross receipts of the taxpayer not allocated under AS 43.19.010, Article IV.5 to IV.8. Thus, for the purposes of the sales factor of the apportionment formula for each trade or business of the taxpayer, the t…

The denominator of the sales factor must include the total gross receipts derived by the taxpayer from transactions and activity in the regular course of its trade or business, except receipts excluded under 15 AAC 19.302. Notes 15 AAC 19.261 Eff. 5/24/78, Register 66 Authority:A…

The numerator of the sales factor must include gross receipts attributable to this state and derived by the taxpayer from transactions and activity in the regular course of its trade or business. All interest income, service charges, carrying charges, or time-price differential c…

(a) Gross receipts from sales of tangible personal property (except sales to the United States government as defined in 15 AAC 19.291) are in this state (1) if the property is delivered or shipped to a purchaser within this state regardless of the f.o.b. point or other conditions…

Gross receipts from sales of tangible personal property to the United States government are in this state if the property is shipped from an office, store, warehouse, factory, or other place of storage in this state. For the purpose of this section, only sales for which the Unite…

(a) In General. AS 43.19.010, Article IV.17, provides for the inclusion in the numerator of the sales factor, gross receipts from transactions other than sales of tangible personal property (including transactions with the United States government); under this section gross recei…

(a) Where substantial amounts of gross receipts arise from an incidental or occasional sale of a fixed asset used in the regular course of the taxpayer's trade or business, those gross receipts must be excluded from the sales factor. For example, gross receipts from the sale of a…

Unless the context otherwise requires, in this chapter (1) "allocation" refers to the assignment of nonbusiness income to a particular state; (2) "apportionment" refers to the division of business income between states by the use of a formula containing apportionment factors; (3)…

Notes 15 AAC 19.9010 Repealed 5/24/78. State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to comp…

Notes 15 AAC 19.9020 Repealed 5/24/78. State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to comp…