Apportionment

In general, corporations engaged in multistate business activity, other than public utilities and excluded corporations, are required to apportion to this State all apportionable income by using a four-factor formula. The apportionment formula consists of the sum of the property factor, the payroll factor and twice the sales factor divided by four. If the sales factor does not exist, the denominator is the number of existing factors. If a property or payroll factor does not exist, the denominator is the number of existing factors plus one. The only time a factor does not exist is when there is no denominator. When there is a denominator for a particular factor, but no numerator, the factor is zero and becomes part of the apportionment factor.

For more information, see G.S. 105-130.4.

Property Factor

Payroll Factor

Sales Factor