59-7-310 - Allocation of patent and copyright royalties. - Utah Statutes

59-7-310. Allocation of patent and copyright royalties.
(1) To the extent they constitute nonbusiness income, patent and copyright royalties areallocable to this state:
(a) if and to the extent that the patent or copyright is utilized by the payer in this state; or
(b) if and to the extent that the patent or copyright is utilized by the payer in a state inwhich the taxpayer is not taxable and the taxpayer's commercial domicile is in this state.
(2) A patent is utilized in a state to the extent that it is employed in production,fabrication, manufacturing, or other processing in the state or to the extent that a patented productis produced in the state. If the basis of receipts from patent royalties does not permit allocation tostates or if the accounting procedures do not reflect states of utilization, the patent is utilized inthe state in which the taxpayer's commercial domicile is located.
(3) A copyright is utilized in a state to the extent that printing or other publicationoriginates in the state. If the basis of receipts from copyright royalties does not permit allocationto states or if the accounting procedures do not reflect states of utilization, the copyright isutilized in the state in which the taxpayer's commercial domicile is located.

Amended by Chapter 83, 1994 General Session