What is apportioned tax?

Apportioned tax refers to a tax that is allocated or distributed among various entities or jurisdictions based on a specific formula or criteria. This type of tax is often used to ensure that revenues are fairly shared, particularly in cases where income or profits are generated in multiple locations. For example, a corporation operating in several states may have its income apportioned to determine how much tax it owes in each state based on factors like sales, property, or payroll. This approach helps to prevent double taxation and ensures a fair contribution to public services in each area.