The apportionment factor of a taxpayer subject to AS 43.20.144 shall be determined based upon the business activities of the taxpayer's unitary business conducted within this state. Except as limited by 15 AAC 20.421, a taxpayer subject to AS 43.20.144 shall apportion its business income to this state by multiplying the taxpayer's business income by the apportionment factor applicable to the taxpayer among the following factors:

1. (1) the apportionment factor of a taxpayer subject to AS 43.20.144 but whose unitary business is not engaged in the production of oil or gas from a lease or property in this state during the tax period is a fraction, the numerator of which is the sum of the property factor under 15 AAC 20.500(b) and the sales factor under 15 AAC 20.500(a) for the taxpayer for that tax period, and the denominator of which is two;
2. (2) the apportionment factor of a taxpayer subject to AS 43.20.144 but whose unitary business is not engaged in the pipeline transportation of oil or gas in this state during the tax period is a fraction, the numerator of which is the sum of the property factor under 15 AAC 20.500(b) and the extraction factor under 15 AAC 20.500(c) for the taxpayer for the tax period, and the denominator of which is two;
3. (3) the apportionment factor of a taxpayer subject to AS 43.20.144 whose unitary business is engaged both in the production of oil or gas from a lease or property in this state and in the pipeline transportation of oil or gas in this state during the tax period is a fraction, the numerator of which is the sum of the sales factor under 15 AAC 20.500(a), the property factor under 15 AAC 20.500(b) and the extraction factor under 15 AAC 20.500(c) for the taxpayer for the tax period, and the denominator of which is three.

(Eff. 4/14/82, Register 82; am 3/6/98, Register 145)