HAR § 18-235-35-02 — (6) If a taxpayer derives receipts from the sale of equipment used in its business, those receipts constitute sales

For example, a truck express company owns a fleet of trucks and sells its trucks under a regular replacement program. The gross receipts from the sales of the trucks are included in the sales factor. See section 18-235-38-03 for rules that would apply if the sales were occasional. (b) In some cases certain gross receipts shall be disregarded in determining the sales factor in order that the apportionment formula will operate fairly to apportion to this State the income of the taxpayer’s trade or business. See section 18-235-38-03. (c) In filing returns with this State, if the taxpayer departs from or modifies the basis for excluding or including gross receipts in the sales factor used in returns for prior years, the taxpayer shall disclose in the return for the current year the nature and extent of the modification. (d) If the returns or reports filed by a taxpayer with all states to which the taxpayer reports under Article IV of the Multistate Tax Compact or the Uniform Division of Income for Tax Purposes Act are not uniform in the inclusion or exclusion of gross receipts, the taxpayer shall disclose in its return to this State the nature and extent of the variance.