For most taxpayers,which of the traditional apportionment factors yields the greatest opportunities for tax reduction?

Question

Quizplus · Accepted Answer

For most taxpayers, sales (gross receipts) yields the greatest opportunities for tax reduction because it is often the most heavily weighted apportionment factor in many states. Thus, companies that can allocate more of their sales outside of higher tax states can reduce their overall tax liability. This is often achieved through careful structuring of sales transactions or by maintaining lower levels of property or payroll in higher tax states.

For Most Taxpayers,which of the Traditional Apportionment Factors Yields the Greatest