Utah Code 59-7-315. Payroll factor for apportionment of business income — Compensation of flight personnel by an airline
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(1) Except as provided in Subsections (2) and (3), the payroll factor is a fraction:
Terms Used In Utah Code 59-7-315
- Aircraft type: means a particular model of aircraft as designated by the manufacturer of the aircraft. See Utah Code 59-7-302
- Airline: means the same as that term is defined in Section 59-2-102. See Utah Code 59-7-302
- Airline revenue ton miles: means , for an airline, the total revenue ton miles during the airline's tax period. See Utah Code 59-7-302
- Compensation: means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services. See Utah Code 59-7-302
- State: means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof. See Utah Code 59-7-302
- Taxpayer: means any corporation subject to the tax imposed by this chapter. See Utah Code 59-7-101
- Utah revenue ton miles: means , for an airline, the total revenue ton miles within the borders of this state:(1)(q)(i) during the airline's tax period; and(1)(q)(ii) from flight stages that originate or terminate in this state. See Utah Code 59-7-302(1)(a) the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation; and(1)(b) the denominator of which is the total compensation paid everywhere during the tax period.
(2) The total amount paid in this state during the tax period by an airline for compensation attributable to the compensation of flight personnel for purposes of the numerator of the fraction described in Subsection (1) shall be calculated for each aircraft type by multiplying:
(2)(a) the total amount paid during the tax period by the airline to flight personnel for compensation for the aircraft type; and
(2)(b) a fraction:
(2)(b)(i) the numerator of which is the Utah revenue ton miles for the aircraft type; and
(2)(b)(ii) the denominator of which is the airline revenue ton miles for the aircraft type.
(3)
(3)(a) For purposes of Subsection 59-7-302(3)(b)(i)(B) and subject to Subsection (3)(b), the payroll factor is a fraction:
(3)(a)(i) the numerator of which is the amount of the payroll in this state that is attributable to economic activities that are classified in an excluded NAICS code; and
(3)(a)(ii) the denominator of which is the total amount of the payroll in this state.
(3)(b) A taxpayer engaged in economic activities that are classified in an excluded NAICS code shall exclude an individual’s payroll from the calculation of the payroll factor fraction described in Subsection (3)(a) if the individual’s payroll may be attributed:
(3)(b)(i) to economic activities in both excluded NAICS codes and NAICS codes that are not excluded NAICS codes; or
(3)(b)(ii) to providing management, information technology, finance, accounting, legal, or human resource services.