throwout noun3 •(US) A practice to avoid untaxed nowhere income by instead assuming the untaxed transaction is taxed in the originating state in a notional proportion to other taxable transactions.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 •A folded sheet that opens out to one side; half a gatefold. •(rare) One who has been rejected by society; an outcast. formsthrowouts