Apportionment Method
Apportionment Method means:
the method or formulas used to apportion the total federal business income of an out-of-state entity to determine taxes due the state. One of the methods or formulas used to allocate income and expenses between related enterprises using a formula consisted of some factors such as sales, property, or payroll. Although the method or formulas vary from state to state, most states use a three-factor apportionment formula that weights sales, property, and payroll.
See also other Tax Terms and Definitions in U.S.A.
modified three-factor formula.
See Payroll Tax in the U.S. Legal Encyclopedia and Payroll Tax in the World Legal Encyclopedia.
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