Uniform Division of Income for Tax Purposes Act

Summary

A uniform Act promulgated by the National Conference of Commissioners on Uniform State Laws to provide a reasonable method of apportionment for income earned by business taxpayers in multiple states. UDITPA provides for the apportionment of business income using an equally weighted formula consisting of three factors—property, payroll, and sales (gross receipts). The formula measures in-state property, payroll, and sales in relation to those factors everywhere.