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.