Any term used in these rules have the meaning which is ascribed to it in chapter 220, F.S., unless a clearly different meaning is indicated from the context in which the term is used. For the purposes of these rules:

1. (1) “Apportionment” means the process of assigning business income between states by the use of a formula. If the business activity in respect to any trade or business of a taxpayer occurs both within and without Florida, and if by reason of such business activity, the taxpayer is taxable in another state, the portion of the net income (or net loss) arising from such trade or business which is derived from sources within Florida shall be determined by apportionment. For purposes of apportionment of income, a taxpayer is taxable in another state if:

   1. (a) In that state the business 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 corporate stock tax, or
   2. (b) That state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not.
2. (2) “Allocation” refers to the assignment of nonbusiness income to a particular state. Any taxpayer subject to the taxing jurisdiction of Florida must allocate all of its nonbusiness income or loss within or without Florida in accordance with section 220.16, F.S.
3. (3) “Business activity” refers to the transactions and activity occurring in the regular course of a particular trade or business of a taxpayer.

4. (4) “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, management, and disposition of the property constitute integral parts of the taxpayer’s regular trade or business operations. In essence, all income which arises from the conduct of trade or business operations of a taxpayer is business income. The income of a taxpayer is business income unless clearly classifiable as nonbusiness income.

   Cross reference: rule 12C-1.016, F.A.C.

5. (5) “Doing business” means actively engaging in any transaction for the purpose of financial gain. A taxpayer will be considered doing business within and without Florida if it has income from business activity which is taxable both within and without Florida. Income derived from or attributable to sources within Florida includes income from tangible or intangible property located or having a situs in Florida and income from any activities carried on in Florida, whether carried on in intrastate, interstate, or foreign commerce.
6. (6) “Written Notice” means any corporate income tax, franchise tax, or emergency excise tax return required by section 220.22, F.S., formerly section 221.04, F.S., or rule 12C-1.022, F.A.C., amended returns (Form F-1120X or an amended F-1120 or F-1120A), or a final determination made pursuant to an audit.

Rulemaking Authority 213.06(1), 220.51 FS. Law Implemented 220.03, 220.13, 220.15, 220.16, 220.22, 220.63, 220.64 FS. History–New 10-20-72, Amended 10-8-74, 8-4-75, 9-6-76, 4-11-77, 12-18-83, Formerly 12C-1.03, Amended 12-21-88, 4-8-92, 5-17-94, 1-25-12.