CHAPTER 17. Allocation of Income [25101. - 25141.]

Chapter 17 added by Stats. 1955, Ch. 938.

§§ 25101–25141 · 44 sections

1. ARTICLE 1. General Provisions §§ 25101–25108 · 12 sections

   • § 25101 When the income of a taxpayer subject to the tax imposed under this part is derived from or attributable to sources both within and without the state the tax…
   • § 25101.1 The amendments made at the 1957 Regular Session of the Legislature to Section 25101 of the Revenue and Taxation Code shall be applicable only with respect to…
   • § 25101.15 If the income of two or more taxpayers is derived solely from sources within this state and their business activities are such that if conducted within and…
   • § 25101.3 The property factor as it relates to the aircraft of an air carrier or foreign air carrier, as defined in Section 1150, or the operator of an air taxi, as…
   • § 25102 In the case of two or more persons, as defined in Section 19 of this code, owned or controlled directly or indirectly by the same interests, the Franchise Tax…
   • § 25103 In the case of a corporation doing business within the meaning of this part, whether under agreement or otherwise, in such manner as either directly or…
   • § 25104 In the case of a corporation liable to report under this part owning or controlling, either directly or indirectly, another corporation, or other corporations,…
   • § 25105 (a) For purposes of this article, other than Section 25102, the income and apportionment factors of two or more corporations shall be included in a combined…
   • § 25106 (a) (1) In any case in which the income of a corporation is or has been determined under this chapter with reference to the income and apportionment factors of…
   • § 25106.5 (a) The Franchise Tax Board may adopt regulations necessary to ensure that the tax liability or net income of any taxpayer whose income derived from or…
   • § 25107 (a) For the purposes of allocation and apportionment of income under Sections 25101 and 25121, an international banking facility maintained by a bank within…
   • § 25108 (a) For corporations whose income is subject to the provisions of Section 25101 or 25101.15, the net operating loss determined in accordance with Section 172…
2. ARTICLE 1.5. Water's-Edge Election §§ 25110–25116 · 7 sections

   • § 25110 (a) Notwithstanding Section 25101, a qualified taxpayer, as defined in paragraph (2) of subdivision (b), that is subject to the tax imposed under this part,…
   • § 25111 (a) For taxable years beginning before January 1, 2003, the making of a water’s-edge election as provided for in Section 25110 shall be made by contract with…
   • § 25111.1 (a) For any taxable year beginning on or after January 1, 1994, consideration for water’s-edge contracts in existence as of that date is no longer provided for…
   • § 25112 (a) If a taxpayer electing to file under Section 25110 fails to supply any information described in subdivision (b), the taxpayer shall pay a penalty of one…
   • § 25113 (a) Except as provided in subdivision (f), for taxable years beginning on or after January 1, 2003, the election provided for in Section 25110 shall be made on…
   • § 25114 (a) The Franchise Tax Board, for purposes of administering the provisions of this article, shall examine all returns filed by taxpayers subject to these…
   • § 25116 Notwithstanding paragraph (1) of subdivision (a) of Section 23051.5, when provisions of this article refer to provisions of the Internal Revenue Code that do…
3. ARTICLE 2. Uniform Division of Income for Tax Purposes Act §§ 25120–25141 · 25 sections

   • § 25120 As used in Sections 25120 to 25139, inclusive, which shall hereafter be referred to as “this act,” unless the context otherwise requires: (a) “Business income”…
   • § 25121 Any taxpayer having income from business activity which is taxable both within and without this state shall allocate and apportion its net income as provided…
   • § 25122 For purposes of allocation and apportionment of income under this act, a taxpayer is taxable in another state if (a) in that state it is subject to a net…
   • § 25123 Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they…
   • § 25124 (a) Net rents and royalties from real property located in this state are allocable to this state. (b) Net rent and royalties from tangible personal property…
   • § 25125 (a) Capital gains and losses from sales of real property located in this state are allocable to this state. (b) Capital gains and losses from sales of tangible…
   • § 25126 Interest and dividends are allocable to this state if the taxpayer’s commercial domicile is in this state.
   • § 25127 (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 payor in this state,…
   • § 25128 (a) Notwithstanding Section 38006, for taxable years beginning before January 1, 2013, all business income shall be apportioned to this state by multiplying…
   • § 25128.7 Notwithstanding Section 38006, for taxable years beginning on or after January 1, 2013, all business income of an apportioning trade or business, other than an…
   • § 25128.9 (a) The Legislature finds and declares all of the following: (1) In 1966, the California Legislature enacted the Uniform Division of Income for Tax Purposes…
   • § 25129 The property factor is a fraction, the numerator of which is the average value of the taxpayer’s real and tangible personal property owned or rented and used…
   • § 25130 Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate. Net annual…
   • § 25131 The average value of property shall be determined by averaging the values at the beginning and ending of the taxable year but the Franchise Tax Board may…
   • § 25132 The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the taxable year by the taxpayer for compensation, and…
   • § 25133 Compensation is paid in this state if: (a) The individual’s service is performed entirely within the state; or (b) The individual’s service is performed both…
   • § 25134 The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this state during the taxable year, and the denominator of which…
   • § 25135 (a) Sales of tangible personal property are in this state if: (1) The property is delivered or shipped to a purchaser, other than the United States government,…
   • § 25136 (a) Notwithstanding Section 38006, for taxable years beginning on or after January 1, 2013, sales, other than sales of tangible personal property, are in this…
   • § 25136.1 (a) For taxable years beginning on or after January 1, 2013, a qualified taxpayer that apportions its business income under Section 25128.7 shall apply the…
   • § 25137 If the allocation and apportionment provisions of this act do not fairly represent the extent of the taxpayer’s business activity in this state, the taxpayer…
   • § 25138 This act shall be so construed as to effectuate its general purpose to make uniform the law of those states which enact it. Enactment of Article IV of the…
   • § 25139 Sections 25120 to 25139, inclusive, may be cited as the Uniform Division of Income for Tax Purposes Act.
   • § 25140 Accounting procedures shall be adopted which will separately reflect the revenues attributable to dividends received by corporations having commercial…
   • § 25141 (a) For purposes of this section, the following definitions shall apply: (1) “Entity” means an individual, corporation, association, partnership, limited…