Taxable In Another State: In General (Rule 385)

Section 63-3027(4), Idaho Code 01. In General. A taxpayer is subject to the allocation and apportionment provisions of Section 63- 3027, Idaho Code, if it has income from business activity that is taxable both within and without Idaho. A taxpayer’s income from business activity is taxable without Idaho if the taxpayer is taxable in another state within the meaning of Section 63-3027(4), Idaho Code, as a result of that business activity. A taxpayer is taxable in another state if it meets either of the following tests: (4-6-23) a. The taxpayer is subject to one (1) of the taxes specified in Section 63-3027(4)(a), Idaho Code, as a result of its business activity in another state; or (4-6-23) b. Another state has jurisdiction to subject the taxpayer to a net income tax as a result of its business activity, regardless of whether the state imposes the tax on the taxpayer. (4-6-23) 02. Not Taxable in Another State. A taxpayer is not taxable in another state with respect to a particular trade or business merely because the taxpayer conducts activities in the other state pertaining to the production of nonapportionable income or business activities relating to a separate trade or business. (4-6-23) 386. -- 389. (RESERVED)