Use an apportionment formula. You may elect to use only a sales factor, or you may use the three-factor formula. The election to use only the sales factor is irrevocable. If using the three-factor formula, you must double weight the sales factor. See the summary below.
Farm income is subject to tax to the extent that sales of farm products are within the district.
Farmers with sales both in and out of the district use apportionment. Businesses with activities and sales both inside and outside the district use apportionment. If those services are performed in the district, they are taxable. Services performed outside the district are not taxable. If services are performed both inside and outside the district, each individual service is either in or out of the district based on whether most of the cost of performance is in or out of the district.