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Proportionality AppealApplicationArizona Revised Statutes 9500.12 and 9500.13DATEDSAP # PROJECT NAMEPROJECT ADDRESS OR LOCATIONOWNERS NAMEADDRESSAPPLICANT\'S NAME (NOT COMPANY NAME)APPLICANT\'S ADDRESSAPPLICANT\'S
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The apportionment rule in legal terms refers to a method used to divide income or tax liability among different jurisdictions where a business operates. It ensures that taxes are distributed fairly based on the business activities conducted in each location.
Businesses that operate in multiple states or jurisdictions and are subject to income tax are required to file the apportionment rule documentation. This includes corporations, partnerships, and any taxpayer subject to state taxation.
To fill out the apportionment rule form, businesses must report their total income, the portion earned in each jurisdiction, and apply the appropriate apportionment formula as specified by the relevant state tax authority.
The purpose of the apportionment rule is to fairly allocate taxable income among different states based on where the business activities occur. This prevents double taxation and ensures each state receives an appropriate share of tax revenue.
Filing entities must report total revenue, specific apportionment factors (such as property, payroll, and sales), and any adjustments made to income based on the apportionment methodology being used.
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