AZ SB1164

Amends Section 43-1139 of Arizona Revised Statutes to modify corporate income apportionment formulas for tax years beginning after December 31, 2008.

Extends the apportionment method through December 31, 2015, allowing taxpayers to use either a three-factor formula (property, payroll, and sales) or an alternative formula with an increased sales factor weight of 8 times.

Introduces new apportionment options for tax years 2016-2017: beginning December 31, 2015, taxpayers can use formulas with an 18-times sales factor (denominator of 20) or, starting December 31, 2016, multiply income solely by the sales factor.

Maintains existing special apportionment rules for taxpayers engaged in air commerce, requiring those deriving 50% or more gross income from air commerce to apportion income based on revenue aircraft miles flown within the state.