43-1138. Patent and copyright royalties
A. Patent and copyright royalties are allocable to this state either:
1. If and to the extent that the patent or copyright is utilized by the payer in this state.
2. If and to the extent that the patent or copyright is utilized by the payer in a state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.
B. A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located.
C. A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer's commercial domicile is located.
Section: Previous 43-1131 43-1132 43-1133 43-1134 43-1135 43-1136 43-1137 43-1138 43-1139 43-1140 43-1141 43-1142 43-1143 43-1144 43-1145 NextLast modified: October 13, 2016