39-22-303.7–2 Application.

(1) The Colorado net income of mutual fund service corporations shall be calculated pursuant to §§ 39-22-303.6, and 39-22-304, C.R.S., with the modification to apportionment set out in § 39-22-303.7, C.R.S., and related rules. (2) Colorado Receipts from Mutual Fund Sales. To determine Colorado receipts from mutual fund sales, a mutual fund service corporation must calculate mutual fund sales by fund and apply the Colorado shareholder factor for each fund to such mutual fund sales by fund. (a) Colorado receipts by fund are calculated by multiplying mutual fund sales by fund by each fund’s shareholder factor. (b) The total Colorado receipts from mutual fund sales are then calculated by adding together the Colorado receipts for each separate fund. (3) If the domicile of a shareholder is unknown to the mutual fund service corporation because the shareholder of record is a person that holds the shares of a regulated investment company as a depositor for the benefit of others, §39-22- 303.7(2)(b) provides that the mutual fund service corporation may use any reasonable basis, such as ZIP codes of underlying shareholders or US census bureau data, in order to determine the proper location for the assignment of the shares. If no other basis appears reasonable, and if the number of such shares is not a majority of the total shares of the fund, then it shall be reasonable to exclude such shares from both the numerator and the denominator of the shareholder factor calculation.