Form Tc-20 - Utah Corporation Franchise Or Income Tax Return Instructions - 2011 Page 23
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25Equally-Weighted Three
a. the base of operations or, if there is no base of
operations the place where the service is directed
Factor Formula Election
or controlled, is within Utah, or
If you are not a sales factor weighted taxpayer and are
b. the base of operations or the place where the
not electing the double-weighted sales factor (see lines
service is directed or controlled is not in any state
10 through 13 below), complete lines 8 and 9. If you
where some part of the service is performed, but
are a sales factor weighted taxpayer or are electing the
the individual’s residence is in Utah.
double-weighted sales factor, leave lines 8 and 9 blank.
Amounts reportable for employment security purposes
Line 8 – Total Factors
may ordinarily be used to determine the wage factor.
Enter the sum of the factors from lines 2, 4 and 6.
Overall wages, including Utah, are listed in column B.
Line 9 – Apportionment Fraction
Line 4 – Payroll Factor Calculation
Calculate the apportionment fraction to six decimals by
Determine the payroll factor (decimal) by dividing line
dividing line 8 by the number of factors used (typically
3a column A by line 3a column B.
3 – property, payroll and sales).
Lines 5a - 5h – Sales Factor
• If one or more of the factors are not present (i.e.,
The sales factor is the fraction the sales or charges for
there is a zero in the denominator on lines 1f, 3a
services within Utah for the taxable year bear to the
or 5h in column B), divide by the number of factors
overall sales for the taxable year. Gross receipts from
present.
the performance of services in Utah are assigned to
• If the numerator is zero, but a denominator is present,
the Utah sales numerator if the purchaser of the service
include that factor in the number of factors present.
receives a greater benefi t of the service in Utah than
in any other state.
Enter the apportionment fraction (decimal) here and on
Schedule A, line 12, if not electing the double-weighted
Taxpayers that perform a service both in and outside
sales factor below.
Utah must include service income on line 5g in column
A (Inside Utah) if the purchaser of the service receives
Double-Weighted Sales Factor
a greater benefi t of the service in Utah than in any
other state. The former “cost of performance” method
Formula Election
no longer applies. (See UC §59-7-319(3)(a).)
If you are not a sales factor weighted taxpayer, you may
Sales of tangible personal property are in Utah if the
elect to give double-weight to the sales factor in the
property is delivered or shipped to a purchaser within
apportionment calculation. If you elect this calculation,
Utah regardless of the F.O.B. point or other conditions
enter an “X” on line 10 and complete lines 11 through 13.
of the sale, or if the property is shipped from an offi ce,
store, warehouse, factory or other place of storage in
Line 10 – Making the Election
Utah and:
Enter an “X” on line 10 if you elect to double-weight
the sales factor.
1. the purchaser is the United States Government, or
2. the taxpayer is not taxable in the state of the pur-
Line 11 – Double Sales Factor
chaser.
Multiply the sales factor (decimal) from line 6 by 2. This
will result in the sales factor being considered twice in
Overall sales, including Utah, are listed in column B.
the calculation.
Note: Securities brokerage businesses must follow the
provisions in UC §59-7-319(6).
Line 12 – Total Factors
Enter the sum of the factors from lines 2, 4 and 11.
Enter totals of lines 5a through 5g in their respective
columns on line 5h.
Line 13 – Elected Apportionment Fraction
Calculate the elected, double-weighted sales factor to
Line 6 – Sales Factor Calculation
six decimals by dividing line 12 by the number of fac-
Determine the sales factor (decimal) by dividing line
tors used (typically 4 – property, payroll and two times
5h column A by line 5h column B.
the sales factor).
NAICS Code for Taxpayer
• If one or more of the factors are not present (i.e.,
there is a zero in the denominator on lines 1f or 3a
in column B), divide by the number of factors pres-
Line 7 – NAICS Code
ent (allowing two factors for sales).
Enter the six-digit NAICS code for this taxpayer. This
is a mandatory fi eld and must be completed.
• If the numerator is zero, but a denominator is present,
include that factor in the number of factors present.
Enter the apportionment fraction (decimal) here and
on Schedule A, line 12.
Page 21
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