43-1135

43-1135. Net rents and royalties

A. Net rents and royalties from real property located in this state are allocable
to this state.

B. Net rents and royalties from tangible personal property are allocable to this
state either:

1. If and to the extent that the property is utilized in this state.

2. In their entirety if the taxpayer's commercial domicile is in this state and the
taxpayer is not organized under the laws of or taxable in the state in which the property
is utilized.

C. The extent of utilization of tangible personal property in a state is determined
by multiplying the rents and royalties by a fraction, the numerator of which is the
number of days of physical location of the property in the state during the rental or
royalty period in the taxable year and the denominator of which is the number of days of
physical location of the property everywhere during all rental or royalty periods in the
taxable year. If the physical location of the property during the rental or royalty
period is unknown or unascertainable by the taxpayer, tangible personal property is
utilized in the state in which the property was located at the time the rental or royalty
payer obtained possession.