State Q wants to increase its income tax collections, but politically it would be unwise to raise taxes on in-state individuals or businesses. Q currently follows all UDITPA rules and employs an equally weighted three-factor apportionment formula. Q allocates nonbusiness income amounts.
Identify some changes to the income tax apportionment formula that would shift the scheduled income tax increases to out-of-state businesses.

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The Answer of State Q wants to increase its income tax collections, but politically it would be unwise to raise taxes on in-state individuals or businesses. Q currently follows all UDITPA rules and employs an equally weighted three-factor apportionment formula. Q allocates nonbusiness income amounts.
Identify some changes to the income tax apportionment formula that would shift the scheduled income tax increases to out-of-state businesses.

State Q Wants to Increase Its Income Tax Collections, but Politically