(1) To perfect a water's-edge election a taxpayer must file a written election with the department within the first 90 days of the tax year for which the election is to become effective. If the first tax period for which the election is to become effective is less than 90 days, the taxpayer will have until the end of the tax period to file the election. The election must disclose the taxpayer's identity and a complete listing of all affiliates owned in excess of 50%. No specific forms are required when making the written election.

(2) With the exception of ARM 42.26.303(2) , each election is binding for a three-year renewable period and may only be revoked upon express written permission of the department.

(3) As stated in (2) above, the water's-edge election is binding for a three-year renewable period. If a taxpayer wishes to continue to file on a water's-edge basis, a written election must again be filed with the department within the first 90 days of the tax year for which the election is to become effective.