| (1) |
To the extent they constitute nonbusiness income, patent and copyright royalties are allocable to this state:
Terms Used In Utah Code 59-7-310- Commercial domicile: means the principal place from which the trade or business of the taxpayer is directed or managed. See Utah Code 59-7-302
- Income: includes losses. See Utah Code 59-7-101
- State: means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof. See Utah Code 59-7-302
- Taxpayer: means any corporation subject to the tax imposed by this chapter. See Utah Code 59-7-101
| (a) |
if and to the extent that the patent or copyright is utilized by the payer in this state; or |
| (b) |
if and to the extent that the patent or copyright is utilized by the payer in a state in which the taxpayer is not taxable and the taxpayer’s commercial domicile is in this state. |
|
| (2) |
A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer’s commercial domicile is located. |
| (3) |
A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer’s commercial domicile is located. |
Amended by Chapter 83, 1994 General Session
