(a) Patent and copyright royalties are allocable to this state:
(1) if and to the extent that the patent or copyright is utilized by the payer in this state, or
(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 26-51-702 26-51-703 26-51-704 26-51-705 26-51-706 26-51-707 26-51-708 26-51-709 26-51-710 26-51-711 26-51-712 26-51-713 26-51-714 26-51-715 NextLast modified: November 15, 2016