(1) The second test, that of 15-31-303, MCA, applies if the taxpayer's
business activity is sufficient to give the state jurisdiction authority to
impose a net income tax by reason of such business activity under the
Constitution and statutes of the United States. Jurisdiction to tax is not present where the state is prohibited
from imposing the tax by reason of the provisions of Public Law 86-272, 15
U.S.C. Sections 381-385.
(2) In the case of any "state" as
defined in 15-31-302, MCA, other than a state of the United States or political
subdivision of such a state, the determination of whether such "state"
has jurisdiction to subject the taxpayer to a net income tax shall be made as
though the jurisdictional standards applicable to a state of the United States
applied in that "state." If
jurisdiction is otherwise present, such "state" is not considered as
without jurisdiction by reason of the provisions of a treaty between that state
and the United States.