A.R.S. § 43-1133: Taxability in other state

For purposes of allocation and apportionment of income under this article, a taxpayer is taxable in another state if either of the following applies:

1. In that state he is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business or a corporate stock tax.

2. That state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not.