Ariz. Admin. Code § 15-2D-603

Current through Register Vol. 30, No. 25, June 21, 2024

Section R15-2D-603 - Property Factor Numerator

The numerator of the property factor is the average value of the real and tangible personal property owned or rented by a taxpayer and used in this state during the tax period in the regular course of the taxpayer's trade or business.

1. Property in transit between locations of the taxpayer to which it belongs is considered to be at its destination for purposes of the property factor.

2. Property in transit between a buyer and seller that is included by a taxpayer in the denominator of its property factor in accordance with its regular accounting practices is included in the numerator according to the state of destination.

3. The value of mobile or movable property such as construction equipment, trucks, or leased electronic equipment that is located within and without this state during the tax period is determined for purposes of the numerator of the property factor on the basis of total time within the state during the tax period.

4. An automobile assigned to a traveling employee is included in the numerator of the property factor of the state to which the employee's compensation is assigned under the payroll factor or in the numerator of the property factor of the state in which the automobile is licensed.

Ariz. Admin. Code § R15-2D-603

Recodified at 6 A.A.R. 2308, filed in the Office of the Secretary of State June 2, 2000 (Supp. 00-2). Amended by final rulemaking at 7 A.A.R. 4973, effective October 5, 2001 (Supp. 01-4).