(a) Receipts, other than receipts of sales of tangible personal property, are in this state if the taxpayer's market for the sales is in this state. The taxpayer's market for sales is in this state:(1) in the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this state;(2) in the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this state;(3) in the case of sale of a service, if and to the extent the service is delivered to a location in this state; and(4) in the case of intangible property:(A) that is rented, leased, or licensed, if and to the extent the property is used in this state, provided that intangible property utilized in marketing a good or service to a consumer is used in this state if that good or service is purchased by a consumer in this state; and(B) that is sold, if and to the extent the property is used in this state, provided that:(i) a contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is used in this state if the geographic area includes all or part of this state;(ii) receipts from intangible property sales that are contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of such intangible property under subdivision (a)(4)(B)(i) of this section; and(iii) all other receipts from a sale of intangible property shall be excluded from the numerator and denominator of the receipts factor.
(1) in the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this state;
(2) in the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this state;
(3) in the case of sale of a service, if and to the extent the service is delivered to a location in this state; and
(4) in the case of intangible property:(A) that is rented, leased, or licensed, if and to the extent the property is used in this state, provided that intangible property utilized in marketing a good or service to a consumer is used in this state if that good or service is purchased by a consumer in this state; and(B) that is sold, if and to the extent the property is used in this state, provided that:(i) a contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is used in this state if the geographic area includes all or part of this state;(ii) receipts from intangible property sales that are contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of such intangible property under subdivision (a)(4)(B)(i) of this section; and(iii) all other receipts from a sale of intangible property shall be excluded from the numerator and denominator of the receipts factor.
(A) that is rented, leased, or licensed, if and to the extent the property is used in this state, provided that intangible property utilized in marketing a good or service to a consumer is used in this state if that good or service is purchased by a consumer in this state; and
(B) that is sold, if and to the extent the property is used in this state, provided that:(i) a contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is used in this state if the geographic area includes all or part of this state;(ii) receipts from intangible property sales that are contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of such intangible property under subdivision (a)(4)(B)(i) of this section; and(iii) all other receipts from a sale of intangible property shall be excluded from the numerator and denominator of the receipts factor.
(i) a contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is used in this state if the geographic area includes all or part of this state;
(ii) receipts from intangible property sales that are contingent on the productivity, use, or disposition of the intangible property shall be treated as receipts from the rental, lease, or licensing of such intangible property under subdivision (a)(4)(B)(i) of this section; and
(iii) all other receipts from a sale of intangible property shall be excluded from the numerator and denominator of the receipts factor.
(b) If the state or states of assignment under subsection (a) of this section cannot be determined, the state or states of assignment shall be reasonably approximated.
(c) If the taxpayer is not taxable in a state to which a receipt is assigned under subsection (a) or subsection (b) of this section, or if the state of assignment cannot be determined under subsection (a) of this section or reasonably approximated under subsection (b) of this section, such receipts shall be excluded from the denominator of the receipts factor.
(d) The Secretary of the Department of Finance and Administration may prescribe rules as necessary or appropriate to carry out the purposes of this section.
(e) (1) Notwithstanding subsection (a) of this section, a person that is principally engaged in the sale of telecommunications service, mobile telecommunications service, internet access service, cable television service, community antenna television service, or direct-to-home satellite television programming service, or a combination of these services, may elect to source sales under this subsection for tax years beginning on or after January 1, 2026, but before December 31, 2035.(2) An election under subdivision (e)(1) of this section shall be made on the taxpayer's return for the first tax year for which the taxpayer is eligible for the election, and once made, an election under subdivision (e)(1) of this section cannot be changed for subsequent years without approval in writing by the secretary.(3) Under this subsection, sales, other than sales described in § 26-51-716, are in this state if:(A) The income-producing activity is performed in this state; or(B) The income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance.
(1) Notwithstanding subsection (a) of this section, a person that is principally engaged in the sale of telecommunications service, mobile telecommunications service, internet access service, cable television service, community antenna television service, or direct-to-home satellite television programming service, or a combination of these services, may elect to source sales under this subsection for tax years beginning on or after January 1, 2026, but before December 31, 2035.
(2) An election under subdivision (e)(1) of this section shall be made on the taxpayer's return for the first tax year for which the taxpayer is eligible for the election, and once made, an election under subdivision (e)(1) of this section cannot be changed for subsequent years without approval in writing by the secretary.
(3) Under this subsection, sales, other than sales described in § 26-51-716, are in this state if:(A) The income-producing activity is performed in this state; or(B) The income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance.
(A) The income-producing activity is performed in this state; or
(B) The income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance.