15-31-324. Water's-edge election period -- consent. (1) A water's-edge election may be made by a taxpayer and is effective only if every affiliated corporation subject to the taxes imposed under this chapter consents to the election. Consent by the common parent of an affiliated group constitutes consent of all members of the group. An affiliated corporation that becomes subject to taxes under this chapter subsequent to the water's-edge election is considered to have consented to the election.
     (2) Each water's-edge election must be for 3-year renewable periods, except as follows:
     (a) No water's-edge election may be made for an income year beginning before October 1, 1987.
     (b) A water's-edge election may be changed by a taxpayer prior to the end of each 3-year period only with the permission of the department of revenue. In granting a change of election, the department shall impose reasonable conditions that are necessary to prevent the avoidance of tax or clearly reflect income for the election period prior to the change.

     History: En. Sec. 4, Ch. 616, L. 1987.