I receive Ohio royalty income and have no property or payroll in Ohio or everywhere else. Are my royalties considered sales for purposes of the sales factor in the apportionment ratio on the IT SBD, part II?
- Yes. If any factor has a denominator (total everywhere figure) of zero, the weight given to the other factors must be proportionately increased so that the total weight given to the combined factors is 100%. Since your payroll and property factors both have a denominator of zero, the weight given to the sales factor should be 100%.