Property factor for apportionment of business income -- Mobile flight equipment of an airline.
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(1) Except as provided in Subsections (2) and (3), the property factor is a fraction:
(a) the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in this state during the tax period; and
(b) the denominator of which is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the tax period.
(2) The average value of an airline's real and tangible personal property owned or rented and used in this state attributable to mobile flight equipment for purposes of the numerator of the fraction described in Subsection (1) shall be calculated for each aircraft type by multiplying:
(a) the total average value of the airline's mobile flight equipment of the aircraft type owned or rented and used during the tax period; and
(b) a fraction:
(i) the numerator of which is the Utah revenue ton miles for the aircraft type; and
(ii) the denominator of which is the airline revenue ton miles for the aircraft type.
(3)
(a) For purposes of Subsection 59-7-302(3)(b)(i)(A) and subject to Subsection (3)(b), the property factor is a fraction:
(i) the numerator of which is the value of the property in this state that is attributable to economic activities that are classified in an excluded NAICS code; and
(ii) the denominator of which is the value of all property in this state.
(b) A taxpayer shall exclude property from the calculation of the property factor fraction described in Subsection (3)(a) if the property may be attributed to economic activities in both excluded NAICS codes and NAICS codes that are not excluded NAICS codes.