Payroll factor for apportionment of business income -- Compensation of flight personnel by an airline

# (1)

Except as provided in Subsections (2) and (3), the payroll factor is a fraction:

# (a)

the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation; and

# (b)

the denominator of which is the total compensation paid everywhere during the tax period.

# (2)

The total amount paid in this state during the tax period by an airline for compensation attributable to the compensation of flight personnel for purposes of the numerator of the fraction described in Subsection (1) shall be calculated for each aircraft type by multiplying:

# (a)

the total amount paid during the tax period by the airline to flight personnel for compensation for the aircraft type; and

# (b)

a fraction:

(i) the numerator of which is the Utah revenue ton miles for the aircraft type; and

(ii) the denominator of which is the airline revenue ton miles for the aircraft type.

# (3)

# (a)

For purposes of Subsection 59-7-302(3)(b)(i)(B) and subject to Subsection (3)(b), the payroll factor is a fraction:

(i) the numerator of which is the amount of the payroll in this state that is attributable to economic activities that are classified in an excluded NAICS code; and

(ii) the denominator of which is the total amount of the payroll in this state.

# (b)

A taxpayer engaged in economic activities that are classified in an excluded NAICS code shall exclude an individual's payroll from the calculation of the payroll factor fraction described in Subsection (3)(a) if the individual's payroll may be attributed:

(i) to economic activities in both excluded NAICS codes and NAICS codes that are not excluded NAICS codes; or

(ii) to providing management, information technology, finance, accounting, legal, or human resource services.