HOME    SEARCH    ABOUT US    CONTACT US    HELP   
           
Rule: 42.26.503 Prev     Up     Next    
Rule Title: SOLICITATION OF ORDERS AND ACTIVITIES ANCILLARY TO SOLICITATION
Add to My Favorites
Add to Favorites
Department: REVENUE, DEPARTMENT OF
Chapter: CORPORATE MULTISTATE ACTIVITIES
Subchapter: Public Law 86-272
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

Printer Friendly Version

42.26.503    SOLICITATION OF ORDERS AND ACTIVITIES ANCILLARY TO SOLICITATION

(1) For the in-state activity to be a protected activity under P.L. 86-272, it must be limited solely to solicitation (except for de minimis activities described in ARM 42.26.505, and those activities conducted by independent contractors described in ARM 42.26.511) . Solicitation means speech or conduct that explicitly or implicitly invites an order, and activities that neither explicitly nor implicitly invite an order, but are entirely ancillary to requests for an order.

(a) Ancillary activities are those activities that serve no independent business function for the seller apart from their connection to the solicitation of orders. Activities that a seller would engage in apart from soliciting orders shall not be considered as ancillary to the solicitation of orders. The mere assignment of activities to sales personnel does not, merely by such assignment, make such activities ancillary to solicitation of orders.

(b) Additionally, activities that seek to promote sales are not ancillary because P.L. 86-272 does not protect activity that facilitates sales; it only protects ancillary activities that facilitate the request for an order. The conducting of activities not falling within the foregoing definition of solicitation will cause the company to lose its protection from a net income tax afforded by P.L. 86-272, unless the disqualifying activities, taken together, are either de minimis or are otherwise permitted under this sub-chapter.

History: Sec. 15-1-201 and 15-31-313, MCA; IMP, Sec. 15-1-601, 15-31-301, 15-31-302, 15-31-303, 15-31-304, 15-31-305, 15-31-306, 15-31-307, 15-31-308, 15-31-309, 15-31-310, 15-31-311, and 15-31-312, MCA; NEW, 2004 MAR p. 1035, Eff. 4/23/04.


 

 
MAR Notices Effective From Effective To History Notes
4/23/2004 Current History: Sec. 15-1-201 and 15-31-313, MCA; IMP, Sec. 15-1-601, 15-31-301, 15-31-302, 15-31-303, 15-31-304, 15-31-305, 15-31-306, 15-31-307, 15-31-308, 15-31-309, 15-31-310, 15-31-311, and 15-31-312, MCA; NEW, 2004 MAR p. 1035, Eff. 4/23/04.
Home  |   Search  |   About Us  |   Contact Us  |   Help  |   Disclaimer  |   Privacy & Security