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Current as of March 08, 2022 | Updated by FindLaw Staff
A. Net rents and royalties from real property located in this state are allocable to this state.
B. Net rents and royalties from tangible personal property are allocable to this state either:
1. If and to the extent that the property is utilized in this state.
2. In their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.
C. The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.
Cite this article: FindLaw.com - Arizona Revised Statutes Title 43. Taxation of Income § 43-1135. Net rents and royalties - last updated March 08, 2022 | https://codes.findlaw.com/az/title-43-taxation-of-income/az-rev-st-sect-43-1135/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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