The throwback rule includes inventory in transit in the numerator of the state from where it was shipped.

Question

Quizplus · Accepted Answer

The throwback rule typically applies to sales of tangible personal property and involves including sales in the numerator of the state where the property was shipped from if the destination state does not have jurisdiction to tax the sale. Inventory in transit is not directly related to this rule.

The Throwback Rule Includes Inventory in Transit in the Numerator