Definition of "throwout"

The first category were throwouts of the Police Reserve and the prisons organization who avenged themselves on these bodies that had rejected them by inventing and spreading accusations of malpractices.

1963, Fred Majdalany, State of Emergency: The Full Story of Mau Mau, page 228

Alternatively, the throwout rule, adopted by only a few states, eliminates or “throws out” sales from the denominator of the apportionment factor when sales are not taxable in the destination state.

2005, LeAnn Luna, “Throwback rules, multistate corporations”, in Joseph J. Cordes, Robert D. Ebel, Jane G. Gravelle, editors, The Encyclopedia of Taxation & Tax Policy (Second Edition), The Urban Institute Press, page 436

The effect of the throwback rule is to distribute income according to sales in the origin state. The effect of the throwout rule is to distribute income according to the taxpayer’s overall activities as measured by the other apportionment factors.

2006, Joann Martens-Weiner, chapter 4, in Company Tax Reform in the European Union: Guidance from the United States and Canada on Implementing Formulary Apportionment in the EU, Springer Science+Business Media, Inc., page 53

The throwout rule would have the effect of attributing the receipts concerned to the Member States in proportion to the other sales, which is not supported by the logic of the sales factor as those other Member States have not contributed to the profits associated with those gross receipts.

2009, Stefan Mayer, chapter 4, in Formulary Apportionment for the Internal Market (Doctoral Series; 17), IBFD, page 220