Example: | Corporation A | Corporation B | Corporation C | Combined Amounts |
Facts: | ||||
Federal taxable income | $500,000 | $(80,000) | $40,000 | $460,000 |
State adjustments | 10,000 | 1,000 | 5,000 | 16,000 |
North Dakota property | 150,000 | 0 | 10,000 | |
Total property | 150,000 | 100,000 | 10,000 | 260,000 |
North Dakota payroll | 60,000 | 0 | 40,000 | |
Total payroll | 60,000 | 100,000 | 40,000 | 200,000 |
North Dakota sales | 1,000,000 | 0 | 200,000 | |
Total sales | 1,500,000 | 300,000 | 200,000 | 2,000,000 |
Computation of apportionment factor | Corporation A | Corporation C | ||
North Dakota property | $150,000 | $10,000 | ||
Combined property | 260,000 | 260,000 | ||
Property factor | .576923 | .038462 | ||
North Dakota payroll | 60,000 | 40,000 | ||
Combined payroll | 200,000 | 200,000 | ||
Payroll factor | .300000 | .200000 | ||
North Dakota sales | 1,000,000 | 200,000 | ||
Combined sales | 2,000,000 | 2,000,000 | ||
Sales factor | .500000 | .100000 | ||
Sum of factors | 1.376923 | .338462 | ||
Apportionment factor | .458974 | .112821 |
Computation of tax liability | Corporation A | Corporation C | Total Tax Due |
Federal taxable income | $460,000 | $460,000 | |
State adjustments | 16,000 | 16,000 | |
North Dakota apportionable income | 476,000 | 476,000 | |
Apportionment factor | .458974 | .112821 | |
North Dakota taxable income | 218,472 | 53,703 | |
North Dakota tax due (2015 rates) | 8,501 | 1,400 | $9,901 |
N.D. Admin Code 81-03-05.1-08
General Authority: NDCC 57-38-56
Law Implemented: NDCC 57-38-14