Most states have shifted away from an equally weighted three-factor to a heavily weighted sales apportionment formula.

Question

Quizplus · Accepted Answer

This is true. Most states have shifted to a heavily weighted sales apportionment formula, which uses a company's sales as the main factor in determining its apportionment factor for state income tax purposes. This is intended to benefit states with larger consumer markets and/or a greater proportion of service-related businesses.

Most States Have Shifted Away from an Equally Weighted Three-Factor