IDAPA 35.01.01.343 — PRINCIPLES FOR DETERMINING THE EXISTENCE OF A UNITARY BUSINESS:

INDICATORS OF A UNITARY BUSINESS (RULE 343).
Section 63-3027, Idaho Code
01.
Same Type of Business. Business activities that are in the same general line of business generally
constitute a single unitary business, for example, a multistate grocery chain.
(4-6-23)
02.
Steps in a Vertical Process. Business activities that are part of different steps in a vertically
structured business almost always constitute a single unitary business. For example, a business engaged in the
exploration, development, extraction, and processing of a natural resource and the subsequent sale of a product based
upon the extracted natural resource, is engaged in a single unitary business, regardless of the fact that the various
steps in the process are operated substantially independently of each other with only general supervision from the
business's executive offices.
(4-6-23)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.01
Idaho State Tax Commission
Income Tax Administrative Rules
Section 344
Page 57
03.
Strong Centralized Management. Business activities that might otherwise be considered as part
of more than one (1) unitary business may constitute one (1) unitary business when there is a strong centralized
management, coupled with the existence of centralized departments for such functions as financing, advertising,
research, or purchasing. Strong centralized management exists when a central manager or group of managers makes
substantially all of the operational decisions of the business. For example, some businesses conducting diverse lines
of business may properly be considered as engaged in only one (1) unitary business when the central executive
officers are actively involved in the operations of the various business activities and there are centralized offices that
perform for the business activities the normal matters that a truly independent business would perform for itself, such
as personnel, purchasing, advertising, or financing.
(4-6-23)