AZ SB1479

Amends Arizona corporate income tax apportionment formulas for business income through taxable year 2017, with a gradual shift toward sales factor-only apportionment by December 31, 2017.

For taxable years beginning December 31, 2016 through December 31, 2017, allows taxpayers to apportion income using either the traditional three-factor formula or the sales factor alone.

Effective after December 31, 2017, requires all business income apportionment to use only the sales factor method for non-air commerce businesses.

Establishes market-based sourcing rules for non-tangible personal property sales beginning January 1, 2018, replacing income-producing activity tests with specific location and use criteria for various property types.

Modifies multistate service provider election rules to allow treatment of service sales under market-based sourcing with gradual phase-in percentages from 85% to 100% market sales between 2013 and 2017.