80% Sales Factor
Corporations have the option to either use the Double Weighted or 80% Sales Factor apportionment to calculate taxable income for Arizona. Like the Double Weighted Apportionment, the 80% Sales Factor employs the same three factors to determine the percentage of income that is subject to taxation in the state of Arizona:
The 80% Sales Factor calculation assigns different weights to each factor, putting an emphasis on sales made in Arizona. The weight on sales increases over the three-year phase in period. The calculation for 2009 and subsequent years is as follows:
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Payroll paid in Arizona divided by global payroll.
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Value (original cost) of property situated in Arizona divided by the global value (original cost) of property.
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Sales in Arizona multiplied by eight and divided by global sales.
The three percentages are added together and divided by 10 to produce a ratio to apportion total taxable income to Arizona.