Title 57 — Taxation

As used in this chapter, unless the context otherwise requires: 1. "Business income" means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, managem…

Any taxpayer having income from business activity which is taxable both within and without this state, including a public utility, shall allocate and apportion the taxpayer's net income as provided in this chapter.

For purposes of allocation and apportionment of income under this chapter, a taxpayer is taxable in another state if: 1. In that state the taxpayer is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a co…

Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income, must be allocated, net of related expenses, as provided in sections 57-38.1-05 through 57-38.1…

1. Net rents and royalties from real property located in this state are allocable to this state. 2. Net rents and royalties from tangible personal property are allocable to this state: a. If and to the extent that the property is utilized in this state; or b. In their entirety if…

1. Capital gains and losses from sales of real property located in this state are allocable to this state. 2. Capital gains and losses from sales of tangible personal property are allocable to this state if: a. The property had a situs in this state at the time of the sale; or b.…

Interest and dividends are allocable to this state if the taxpayer's commercial domicile is in this state.

1. Patent and copyright royalties are allocable to this state: a. If and to the extent that the patent or copyright is utilized by the payer in this state; or b. If and to the extent that the patent or copyright is utilized by the payer in a state in which the taxpayer is not tax…

1. Except as permitted under subsections 2 through 4, all business income must be apportioned to this state by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is three.…

The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period and the denominator of which is the average value of all the taxpayer's real and tangi…

Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subr…

The average value of property must be determined by averaging the values at the beginning and ending of the tax period but the tax commissioner may require the averaging of monthly values during the tax period if reasonably required to reflect properly the average value of the ta…

The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period.

Compensation is paid in this state if: 1. The individual's service is performed entirely within the state; 2. The individual's service is performed both within and without the state, but the service performed without the state is incidental to the individual's service within the …

The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax period and the denominator of which is the total sales of the taxpayer everywhere during the tax period.

Sales of tangible personal property are in this state if: 1. The property is delivered or shipped to a purchaser, other than the United States government, within this state regardless of the f.o.b. point or other conditions of the sale; or 2. The property is shipped from an offic…

Sales, other than sales of tangible personal property, are in this state if: 1. The income-producing activity is performed in this state; or 2. The income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is p…

Gain or loss on the sale of a partnership interest is allocable to this state in the ratio of the original cost of partnership tangible property in the state to the original cost of partnership tangible property everywhere, determined at the time of the sale. In the event that mo…

For purposes of this chapter, a limited liability company having two or more members that is formed under either the laws of this state or under similar laws of another state and that is considered to be a partnership for federal income tax purposes is considered to be a partners…

For purposes of this chapter, a limited liability company having a single member that is formed under either the laws of this state or under similar laws of another state and that is considered to be a corporation for federal income tax purposes is considered to be a corporation …

If the allocation and apportionment provisions of this chapter do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the tax commissioner may require, in respect to all or any part of the taxpayer's business activit…

This chapter must be so construed as to effectuate its general purpose to make uniform the law of those states which enact it.

This chapter may be cited as the "Uniform Division of Income for Tax Purposes Act".

The provisions of this chapter apply to all income accruing after January 1, 1965, for taxpayers operating on a calendar year basis, and apply to income accruing in 1965 after the beginning of their fiscal year for taxpayers operating on a fiscal year basis.