California Revenue and Taxation Code

§ 25128

RTC § 25128 Effective Jun 27, 2025Div. 2 · Part 11 · Ch. 17 · Art. 2

Statute text

(a)Notwithstanding Section 38006, for taxable years beginning before January 1, 2013, all business income shall be apportioned to this state by multiplying the business income by a fraction, the numerator of which is the property factor plus the payroll factor plus twice the sales factor, and the denominator of which is four, except as provided in subdivision (b) or (c).

(b)If an apportioning trade or business derives more than 50 percent of its “gross business receipts” from conducting one or more qualified business activities, all business income of the apportioning trade or business shall be apportioned to this state by multiplying business income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is three.

(c)For purposes of this section, a “qualified business activity” means the following:

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Legislative history

Amended by Stats. 2025, Ch. 17, Sec. 22. (SB 132) Effective June 27, 2025. Note: This section was amended on Nov. 6, 2012, by initiative Prop. 39.