Legal Definitions - apportionment

Apportionment refers to the act of dividing something, such as rights, responsibilities, costs, or legislative seats, into proportionate shares or according to a specific plan.

• Example 1: Dividing Shared Expenses

  Imagine two business partners who share an office space. They agree to apportion the monthly rent and utility bills based on the percentage of the office each partner primarily uses. If Partner A uses 60% of the space and Partner B uses 40%, the expenses would be divided in that 60/40 ratio.

  This example illustrates apportionment because it involves dividing a shared financial liability (rent and utilities) into proportionate shares between two entities (the partners) based on a predetermined factor (space usage).

• Example 2: Allocating Legislative Representation

  Following a national census, the total number of seats in a country's parliament or congress is apportioned among its various states or regions. This division is typically based on each state's population, ensuring that areas with more people receive a proportionally larger share of representatives.

  Here, apportionment refers to the distribution of legislative seats among different geographical districts based on a specific criterion, in this case, population, to ensure fair political representation.

• Example 3: Allocating Business Income for Tax Purposes

  A large corporation operates in multiple states, each with its own tax laws. To calculate its state income tax liability, the company must apportion its total profits among these states based on factors like the percentage of sales, property, and payroll located in each state.

  This demonstrates apportionment in a tax context, where a company's overall income is allocated or attributed to different jurisdictions based on specific economic activities within each, allowing for accurate calculation of local tax obligations.