In most states, a taxpayer's income is apportioned on the basis of a formula measuring the extent of business contact and allocated according to the location of property owned or used.

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Most states use a formula based on factors such as property, payroll, and sales within the state to apportion a taxpayer's income, reflecting the extent of the taxpayer's business activities and contacts within that state. This method aims to allocate income in a manner that reflects where the income is actually earned or where the business activities generating the income take place.

In Most States, a Taxpayer's Income Is Apportioned on the Basis