Tax based on sales . A single-factor sales apportionment state looks only at the market opportunities provided by a state and totally discounts the role of payroll and property. It is based solely on the sales of a company. Encourages Expansion in Wisconsin . A single sales factor encourages the location of manufacturing facilities as well as corporate, national and regional headquarters in a state.
Current law encourages moving jobs out of Wisconsin .
Conversely, by apportioning income to a state in direct proportion to the amount of property and payroll located in the state, the three factor formula imposes a tax penalty on businesses that choose to add jobs or expand their facilities within that state. Tax increases for Wisconsin companies operating in single factor states . Furthermore, Wisconsin's multi-state corporations are penalized in the states that have already passed the single sales factor formula. Most of the surrounding states have either fully adopted or are phasing in a single sales factor apportionment formula. Neighboring states have single factor .