Apportionment Analysis

Navigating the state and local taxation is critical for businesses that operate in more than one state or locality. Apportionment is the assignment of a portion of business income to a particular jurisdiction for the purposes of determining the business’s income tax in that jurisdiction.

Our Apportionment Analysis service is designed to help determine the amount of income subject to tax in each jurisdiction.

Understanding Apportionment Rules

Jurisdictions have varying requirements for apportionment, making it important to examine how each state or locality classifies and weighs taxpayers' sales activities. Each jurisdiction state has its formula, leading to diverse rules that businesses must navigate.

Understanding the key apportionment rules becomes paramount for businesses operating in multiple jurisdictions.

For businesses operating across state lines, determining the income subject to tax in each jurisdiction is a complex challenge. The varying ways states source and weigh sales activities can lead to incorrect and often inflated tax liabilities. 

Businesses risk overpaying their state and local taxes without meticulously analyzing the relevant rules, practices, and business facts.

Herbein offers a strategic solution to the challenges of state and local taxation. Our  state and local tax specialists perform a critical analysis to determine the correct apportionment percentages, identify tax minimization opportunities, and ensure accurate calculations of state and local taxes. Contact us today for a consultation.