AudioDigest*

Apportionment trends: The impact of states' evolving formulas

In a time of ever-changing apportionment formulas, states are rapidly increasing the weight of the sales factor or are eliminating property and payroll from the formula altogether.

Sales of royalties, services, business assets, treasury receipts, and other items that produce income are apportioned under increasingly complex formulas.In addition, the apportionment of sales of other than tangible personal property are shifting from an income-producing activity standard to one based on the market.  States are also aggressively enforcing sales factor throwback and throwout rules.

In this podcast, PwC speakers Ken Turner, Michelle Zahler and Kelly Brown discuss the complexities associated with the sourcing of income, effective practices for operating under these new apportionment regimes, and how they affect a variety of industries.

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