Combined Reporting Study

STATE of RHODE I HOPE ISLAND Department of Revenue Division of Taxation Current Corporate Tax System Sample three-factor apportionment: Three-factor apportionment formula Rhode Island State B Total Factor Sales $2,000,000 $2,000,000 $4,000,000 $2,000,000/$4,000,000 = 50% Payroll $1,500,000 $200,000 $1,700,000 $1,500,000/$1,700,000 = 88% Property $2,500,000 $200,000 $2,700,000 $2,500,000/$2,700,000 = 93% Sum of apportionment factors = 231% Sum of apportionment factors /3 = 77% 5

View entire presentation