(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 reason of that business activity (i.e., the transactions and activity occurring in the regular course of a particular trade or business), is taxable in another state within the meaning of AS 43.19.010, Article IV.3. A taxpayer is taxable within another state if it meets either one of two tests
- (1) if by reason of business activity in another state the taxpayer is subject to one of the types of taxes specified, namely: a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax; or
- (2) if by reason of that business activity another state has jurisdiction to subject the taxpayer to a net income tax, regardless of whether the state imposes such a tax on the taxpayer.
- (b) A taxpayer is not taxable in another state with respect to a particular trade or business merely because the taxpayer conducts activities in that other state pertaining to the production of nonbusiness income or business activities relating to a separate trade or business.
(Eff. 5/24/78, Register 66)
Authority: AS 43.05.080, AS 43.19.010