Montana Administrative Code

42.26.244 NUMERATOR OF PAYROLL FACTOR 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 15-31-309, MCA, to be applied in determining whether compensation is paid in this state are derive…

42.26.245 NUMERATOR OF RECEIPTS FACTOR - SALES OTHER THAN SALES OF TANGIBLE PERSONAL PROPERTY - MARKET BASED SOURCING In order to satisfy the requirements of this rule, a taxpayer's assignment of receipts from sales of other than tangible personal property must be consistent with…

42.26.246 NUMERATOR OF RECEIPTS FACTOR - SALE, RENTAL, LEASE, OR LICENSE OF REAL PROPERTY In the case of a sale, rental, lease, or license of real property, the receipts from the sale are in Montana if and to the extent that the property is in Montana. Authorizing statute(s): 15-…

42.26.247 NUMERATOR OF RECEIPTS FACTOR - RENTAL, LEASE, OR LICENSE OF TANGIBLE PERSONAL PROPERTY In the case of a rental, lease, or license of tangible personal property, the receipts from the sale are in Montana if and to the extent that the property is in Montana. If the proper…

42.26.248 NUMERATOR OF RECEIPTS FACTOR - SALE OF A SERVICE The receipts from a sale of a service are in Montana if and to the extent that the service is delivered to a location in Montana. In general, the term "delivered to a location" refers to the location of the taxpayer's mar…

42.26.249 NUMERATOR OF RECEIPTS FACTOR - LICENSE OR LEASE OF INTANGIBLE PROPERTY General provisions. The receipts from the license of intangible property are in Montana if and to the extent the intangible property is used in Montana. In general, the term "use" is construed to ref…

42.26.250 NUMERATOR OF RECEIPTS FACTOR - SALE OF INTANGIBLE PROPERTY Assignment of receipts. The assignment of receipts to a state or states in the instance of a sale or exchange of intangible property depends upon the nature of the intangible property sold. For purposes of this …

42.26.251 RECEIPTS FACTOR IN GENERAL Section 15-31-302, MCA, defines the term "receipts" to mean all gross receipts of the taxpayer not allocated under 15-31-304, MCA. Thus, for the purposes of the receipts factor of the apportionment formula for each trade or business of the tax…

42.26.252 CONSISTENCY IN REPORTING WITH RESPECT TO RECEIPTS In filing returns with this state, if the taxpayer departs from or modifies the basis for excluding or including gross receipts in the receipts factor used in returns for prior years, the taxpayer shall disclose in the r…

42.26.253 DENOMINATOR OF RECEIPTS FACTOR The denominator of the receipts factor shall 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 ARM 42.26.263. Authorizing …

42.26.254 NUMERATOR OF RECEIPTS FACTOR The numerator of the receipts factor shall 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, car…

42.26.255 SALES OF TANGIBLE PERSONAL PROPERTY Gross receipts from the sales of tangible personal property (except sales to the United States government as outlined in ARM 42.26.256) are in this state: if the property is delivered or shipped to a purchaser within this state regard…

42.26.256 SALES OF TANGIBLE PERSONAL PROPERTY TO FEDERAL GOVERNMENT Gross receipts from the 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 thi…

42.26.257 SALES OTHER THAN SALES OF TANGIBLE PERSONAL PROPERTY - COSTS OF PERFORMANCE 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 transacti…

42.26.258 SALES FACTOR DEFINITIONS (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-31-313 and 15-31-501, MCA Implementing statute(s): Sec. 15-31-310, 15-31-311, and 15-31-312, MCA History: NEW, 1988 MAR p. 1992, Eff. 9/9/88; REP, 1993 MAR p. 572, Eff. 4/16/93.

42.26.259 SALE OF TANGIBLE AND INTANGIBLE PROPERTY COMPUTATION OF THE RECEIPTS FACTOR Refer to ARM 42.26.202 for definitions applicable to this rule. If a taxpayer derives receipts from the sale of tangible property or the sale or redemption of intangible property not held primar…

42.26.260 APPLICATION OF THE FINNIGAN RULE In determining whether the activities of any company have been conducted within Montana beyond the protection of P.L. 86-272, the principle established in Appeal of Finnigan Corporation, 88-SBE-022 (8/25/1988) and Appeal of Finnigan Corp…

42.26.261 SPECIAL APPORTIONMENT AND ALLOCATION COMPUTATIONS In the case of certain industries such as air transportation, rail transportation, ship transportation, trucking, television, radio, motion pictures, various types of professional athletics, and so forth, as the departme…

42.26.262 SPECIAL COMPUTATIONS RELATED TO PROPERTY FACTOR The following special rules are established in respect to the property factor of the apportionment formula: If the sub-rents taken into account in determining the net annual rental rate under ARM 42.26.236 produce a negati…

42.26.263 SPECIAL COMPUTATIONS RELATED TO RECEIPTS FACTOR The following special criteria are established in respect to the receipts factor of the apportionment formula: Insubstantial amounts of gross receipts arising from incidental or occasional transactions or activities may be…

42.26.264 SPECIAL COMPUTATIONS RELATED TO FREIGHT AND PASSENGER CARRIERS A portion of the net income of taxpayers engaged in the transportation of freight or passengers within and without Montana may be attributed to the movement of revenue-producing equipment, drivers, train cre…

42.26.281 APPORTIONMENT OF BUSINESS INCOME (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-1-201, 15-31-313, and 15-31-501, MCA Implementing statute(s): Sec. 15-1-601, 15-31-302, 15-31-305, and 15-31-312, MCA History: NEW, 1988 MAR p. 401, Eff. 2/26/88; REP, 1993 MAR p. 572…

42.26.291 BUSINESS AND NONBUSINESS INCOME (Is Hereby Repealed.) Authorizing statute(s): Sec. 15-31-313 and 15-31-501, MCA Implementing statute(s): Sec. 15-31-301 and 15-31-312, MCA History: NEW, 1988 MAR p. 1818, Eff. 8/12/88; REP, 1993 MAR p. 572, Eff. 4/16/93.

42.26.301 WATER'S-EDGE ELECTION Only multinational corporations subject to the Montana corporate income tax may apportion income under a water's-edge, unitary combination method as set forth in 15-31-322, MCA. Authorizing statute(s): 15-31-501, MCA Implementing statute(s): 15-31-…

42.26.302 PROCEDURE To perfect a water's-edge election, a taxpayer must complete Form WE – ELECT and file the form with the department within the first 90 days of the first tax year of the three-year period for which the election is to become effective. If the first tax period fo…

42.26.303 REVOCATION OR NONRENEWAL OF WATER'S-EDGE ELECTIONS If a taxpayer wishes to change its election prior to the end of the three-year period, permission must first be received from the department. The department shall impose reasonable conditions necessary to insure that th…

42.26.304 DOMESTIC DISCLOSURE SPREADSHEET Electing corporations may be required to file the domestic disclosure spreadsheet within six months of filing the federal income tax return. The disclosure spreadsheet filing must be accomplished on forms prescribed by the department. Aut…

42.26.305 TAX RATES (REPEALED) Authorizing statute(s): 15-31-501, MCA Implementing statute(s): 15-31-121, MCA History: NEW, 1988 MAR p. 278, Eff. 2/12/88; TRANS, from 42.26.218, 2001 MAR p. 2469, Eff. 12/21/01; REP, 2011 MAR p. 2053, Eff. 9/23/11.