For a state to tax a business, the state must have:

Question

Quizplus · Accepted Answer

In order for a state to tax a business, they must have rules for apportioning the company's income, which means determining how much of the company's income is attributable to that specific state. Without these rules, it would not be possible for the state to accurately determine how much tax the company owes. Rules for determining how much of a company's income is profit and which employees made the majority of income are not directly related to a state's ability to tax a business, and rules for determining the costs of operations in other states are only relevant to determining the overall income of the company, rather than the portion attributable to the state in question. Therefore, A is the correct answer.

For a State to Tax a Business, the State Must