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I-507
Specialized Industry Formulas
Background
The evenly weighted three-factor (property, payroll, and sales) apportionment formulaincluded in the Uniform Division of Income for Tax Purposes Act (UDITPA) was designedto apportion the net income of multistate manufacturing and mercantile businesses.Accordingly, the application of that standard formula to multistate service-oriented orspecialized industry businesses has posed a problem for taxpayers and the states becauseincome allocated under the formula may not fairly represent such taxpayers’ in-statebusiness activities. In particular, many have questioned the utility of the “cost of perfor-mance” rule found in UDITPA Section 17 for sourcing the in-state receipts of service-oriented businesses. Under UDITPA Section 17, sales of services are assigned to the statein which the greatest proportion of the income-producing activity is performed, based oncost of performance.
In response, an increasing number of states have enacted statutes or issued regulationsproviding industry-specific or specialized methods of apportionment. In many instances,the equitable apportionment provisions of UDITPA Section 18, which most states haveincorporated into their own statutes, have served as the legal basis for state revenuedepartments to adopt specialized apportionment methods through regulation.
Specialized Apportionment Formulas
The Multistate Tax Commission (MTC) has adopted special apportionment regulationscovering construction contractors [MTC Reg. IV.18(d)], airlines [MTC Reg. IV.18(e)], railoads[MTC Reg. IV.18(f)], trucking companies [MTC Reg. IV.18(g)], television and radio broad-casting [MTC Reg. IV.18(h)], financial institutions [MTC Reg. IV.18(i)], and publishing [MTCReg. IV.18(j)]. In general, these special industry regulations modify the rules for includingand sourcing (i.e., including in the numerator of the factor) property, payroll, and salesunder the standard three-factor apportionment formula. The most significant modificationsare that in certain instances, the cost of performance rule is not used to source receipts, andintangible property is included in the property factor. For example, the publishing regula-tion calls for the use of a publication’s circulation factor; the broadcasting regulationrequires the use of a program’s audience factor to allocate receipts in certain instances; andthe financial institution apportionment regulation includes loans and credit card receiv-ables in the property factor.
Many states, by statute or regulation, have adopted some or all of the MTC regulationsor have used them as a basis for developing their own statutes or regulations. Some states
I-508
have gone further than the MTC and have adopted specialized apportionment statutes orregulations for additional industries, including courier and package delivery services,telecommunications companies, pipeline companies, shippers, franchisers, film producers,securities brokers, professional sports teams, insurance companies, mutual funds, and thefishing industry. In some instances, the primary or secondary motive for a state’s adoptionof specialized apportionment rules is to foster certain industries present within its borders.
As a general rule, states permit only the corporations engaging in a business to which aspecial apportionment formula applies to use that formula or a valuation method containedin that formula. [See, e.g., Cooper Tire & Rubber Co. v. Limbach, 70 Ohio St. 3d 347 (1994);TTX Co. v. Whitley, No. 92 L 51075 (Ill. Cir. Ct. Aug. 31, 1998).] In most instances, whena corporation is required to use a specialized apportionment formula, all the entity’s incomewould be apportioned under that method. For example, in Texaco-Cities Service PipelineCompany v. McGaw [182 Ill. 2d 269 (1998)], the Illinois Supreme Court ruled that thetaxpayer’s gain from the sale of its 90 percent interest in a pipeline was apportionable underIllinois’s sales-only apportionment formula for transportation services businesses.
When a corporation engages in two businesses, one of which is required to use a specialapportionment formula, some states require or permit the use of two apportionmentformulas. For example, in Buckeye Pipeline Co. v. Commonwealth [689 A.2d 366 (Pa.Commw. Ct. 1997)], a one percent general partner of four limited partnerships engaged inthe interstate transportation of petroleum products through pipelines was permitted to usethe single- factor revenue barrel mile apportionment formula for pipeline companies toapportion the portion of its gross receipts attributable to its distributive share of partnershipreceipts, but also was required to use the standard three-factor formula to apportion grossreceipts attributable to management fees received from the partnerships.
Interstate Air Carriers
The MTC has adopted a regulation that addresses the apportionment of business incomeby multistate airlines. [MTC Reg. IV.18(e)] The regulation modifies the standard three-factorproperty, payroll, and sales formula used to apportion business income.
Property Factor. In general, the property factor denominator includes all owned andleased real and tangible personal property used in the company’s business. The numeratorincludes all owned and leased real and tangible personal property used in a particular stateduring the income year. The regulation provides a special rule, however, for sourcingaircraft ready for flight. Such aircraft are includible in a particular state’s numerator in theratio of departures of aircraft from locations in that state weighted as to the cost and valueof aircraft by type compared to total departures similarly weighted. Aircraft ready for flightare defined as aircraft owned or acquired through rental or lease (but not interchange) thatare in the possession of the taxpayer and are available for service on the taxpayer’s routes.
Payroll Factor. The denominator of the payroll factor includes all compensation paideverywhere by a taxpayer during the income year. The numerator of the payroll factor isthe total compensation paid in a particular state during the income year, except forpersonnel performing services within and without the state. The regulation provides aspecial rule for the computation of the payroll factor numerator with respect to flightpersonnel. The payroll of such employees is includible in a particular state’s payroll factornumerator in the ratio of departures of aircraft from in-state locations weighted as to thecost and value of aircraft by type compared to total departures similarly weighted, multi-plied by the total flight personnel compensation.
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Sales Factor. In general, the sales factor denominator includes all revenue derived fromtransactions and activities in the regular course of an airline’s trade or business, except forpassive income and net gains or losses from the sale of aircraft. The numerator of the salesfactor is the total in-state revenue of the taxpayer during the income year. Total in-staterevenue consists of 1) the ratio of in-state departures of aircraft weighted as to the cost andvalue of aircraft by type compared to total departures similarly weighted, multiplied by thetotal transportation revenue, and 2) any directly attributed nonflight revenues.
The States. A number of states have formally adopted the MTC regulation; other stateshave adopted variations of the regulation or their own rules for apportioning air carrierincome. Some states require air carriers to use a three-factor aircraft arrivals and departures,revenue tons handled, and originating revenue formula to apportion income. Some statesrequire an air carrier to use a single-factor formula based on revenue miles or revenue tonmiles to apportion income.
Courts in Illinois and Virginia have held that air carriers were not required to includeflyover miles in computing their states’ apportionment percentages. In Northwest Airlines,Inc. v. Department of Revenue [No. 1-96-4267 (Ill. App. Ct. Mar. 20, 1998)], the IllinoisAppellate Court held that Northwest Airlines and Republic Airlines were not required toinclude flyover miles in the numerator of their single-factor apportionment formula. Illinoisrequires airlines to use a single-factor apportionment formula, the numerator of which isthe revenue miles of the person in Illinois, and the denominator of which is the revenuemiles of the person everywhere. In reaching its decision, the court held that the state lackedsufficient nexus to tax the flyover miles.
Similarly, in Delta Air Lines, Inc. v. W.H. Forst [No. 93-1238 (Va. Cir. Ct. Jan. 27, 1998)],the court held that overflight miles were improperly included in Delta Airline’s Virginiaapportionment formula. Delta used a three-factor property, payroll, and sales formula toapportion its income. In computing its property factor, Delta applied a mileage formula forpurposes of sourcing aircraft. Delta included “actual arrival and actual departure” miles inthe numerator because only those miles related to the airline’s use of Virginia facilities andservices. Delta excluded overflight miles from the numerator of the mileage formula. Incomputing its sales factor, Delta also used a mileage formula for sourcing passenger andcargo revenue. In addition, Delta excluded overflight miles from the numerator of its mileageformula. In reaching its holding, the court examined the relevant statutory provisions. Thecourt found that for property to be included in the property factor numerator, the statuterequired that property to be used in Virginia. Likewise, the sales factor numerator couldonly include sales in Virginia. The court concluded that property used in Virginia and salesin Virginia were not equivalent to property used over Virginia and sales attributable toactivities occurring over Virginia. In addition, the court held for Delta on its constitutionaland federal preemption arguments.
Interstate Trucking Companies
The MTC has adopted a regulation that addresses the apportionment of business incomeby multistate trucking companies. [MTC Reg. IV.18(g)] The regulation modifies the standardthree-factor property, payroll, and sales formula used to apportion business income.
Property Factors. In general, the property factor denominator includes all owned andleased real and tangible personal property used in a trucking company’s business. Thenumerator includes all owned and leased real and tangible personal property used in aparticular state during the income year. The regulation provides a special rule, however,
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for sourcing mobile property. That is, mobile property located solely within a particularstate is includible in that state’s property factor numerator, but mobile property locatedwithin and without a particular state during the income year is included in the numeratorin the ratio that mobile property miles in the state bear to total mobile property miles.A mobile property mile is defined as the movement of a unit of mobile property a distanceof one mile whether loaded or unloaded.
Payroll Factor. The denominator of the payroll factor includes all compensation paideverywhere by a taxpayer during the income year. The numerator of the payroll factor isthe total compensation paid in a particular state during the income year, except forpersonnel performing services within and without the state. The regulation provides aspecial rule with respect to the computation of the payroll factor numerator when personnelperform services within and without the state: the payroll of those employees is includiblein a particular state’s payroll factor numerator in the ratio that their services performed inthat state bear to their services performed everywhere based on mobile property miles.
Sales Factor. In general, the sales factor denominator includes all revenue derived fromtransactions and activities in the regular course of a trucking company’s trade or business.The numerator of the sales factor is the total in-state revenue of the taxpayer during the incomeyear; however, the regulation provides special rules for sourcing revenue from hauling freightand mail. A trucking company will be required to include in a particular state’s numeratorall receipts from any shipment that originates and terminates within that state. With respectto interstate shipments, the amount of revenue included in a particular state’s numerator willbe determined by the ratio that the mobile property miles traveled by such movements orshipments in that state bear to total mobile property miles traveled by movements orshipments from points of origin to destination.
The States. A number of states have formally adopted the MTC regulation; other stateshave adopted variations of the regulation or their own rules for apportioning air carrierincome. Many states require a trucking company to use a single-factor formula based oneither mileage or revenue miles to apportion income.
Telecommunications Service Providers
Most states require telecommunications service providers to use their standard appor-tionment formulas. Some states have adopted regulations that modify their standardproperty, payroll, and sales apportionment formula rules for telecommunications compa-nies. For example, in computing its sales factor numerator, Kentucky requires a telephoneand telegraph company to include gross receipts from sales or services billed to in-statecustomers, access fees from long distance carrier services rendered by the local companyin Kentucky, and gross receipts from other sources as determined under the regular sourcingrules. In computing its property factor, a telephone and telegraph company is required toexclude from the numerator and denominator property owned or leased in outer space.
Some states permit or require telecommunications companies to use a single-factorapportionment formula. For example, Kansas permits qualifying telecommunications com-panies to elect to use a single-factor apportionment formula, the numerator of which is theinformation-carrying capacity of wire and fiber optic cable available for use in Kansas andthe denominator of which is the information- carrying capacity of wire and fiber optic cableavailable for use everywhere. Mississippi requires public service utilities (which includetelephone and telegraph companies) to use a single-factor apportionment formula based ongross operating revenue.
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Effective March 20, 2005, for Louisiana corporate income tax purposes, gross apportion-able income attributable to Louisiana from providing telephone, telecommunications, andsimilar services includes: 1) revenue derived from charges for providing telephone accessfrom a Louisiana location 2) revenue derived from charges for unlimited calling privilegesif the charges are billed by reference to a service address located in the state; 3) revenuefrom intrastate telephone calls or other telecommunications, except for mobile telecommu-nication services, beginning and ending in Louisiana; and 4) revenue from interstate orinternational telephone calls or other telecommunications, except for mobile telecommu-nication services, either beginning or ending in Louisiana if the service address charged forthe call or telecommunication is located in Louisiana, regardless of where the charges arebilled or paid. Revenue from mobile telecommunications services is attributed to the placeof primary use, which is the residential or primary business street address of the customer[La. Dept. of Rev., Regs. §§ 306 and 1134].
Sports/Entertainment Activities
Some states have adopted special apportionment rules for professional sports teams. Forexample, under California’s statutory scheme for apportioning the income of professionalsports teams, only teams with their operations based in California are subject to tax. All ofa California-based team’s property, payroll, and sales will be sourced to California. Anexception to the rule applies if a California-based team is required to allocate or apportionits business income to another state or country and pay an income tax or franchise taxmeasured by income to the other state or country. In such an instance, the California-basedteam is permitted to reduce its business income subject to California tax by the amount ofallocated and apportioned business income taxed by the other state or country. In addition,any team in the same league that has its operations based in the other state or country issubject to California tax on business income allocated and apportioned to California in amanner consistent with the method of allocation and apportionment imposed by the otherstate or country.
Wisconsin taxes professional sports teams doing business in Wisconsin. Wisconsin’sregulation provides for modifications to the property, payroll, and sales factors. In comput-ing the property factor, Wisconsin excludes minor equipment, including uniforms andplaying and practice equipment. In computing the payroll factor, Wisconsin requiresbonuses and payments to be included on a prorated basis in accordance with federal incometax law. With respect to the computation of the sales factor, a team whose home facility isin Wisconsin is required to include in its numerator all gate receipts from games played atits home facility. A taxpayer whose home facility is outside of Wisconsin is required toinclude the percentage of gate receipts received from games played in Wisconsin. TheWisconsin regulation also provides for the sourcing of radio and television receipts fromnational and local broadcasting contracts, concessions, and miscellaneous income. Radioand television receipts from league or association contracts with major communicationsnetworks are includible in the sales factor numerator in proportion to the number of gamesplayed in Wisconsin to total games played by the taxpayer covered by the contract duringthe season. Local television and radio receipts are sourced in Wisconsin if the games areplayed in Wisconsin. A taxpayer is required to include concession income and othermiscellaneous income (e.g., parking lot income, advertising income) in the sales factornumerator if the activity giving rise to the income occurs in Wisconsin. Income from playercontract transactions, franchise fees, and similar sources is excluded from both the salesfactor numerator and denominator.
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Financial Institutions
The MTC regulation governing the apportionment of income for financial institutionsrepresents a compromise between the money-center states, the market states, and represen-tatives from several of the largest financial institutions. [MTC Reg. IV.18(i)] Accordingly,the adopted regulation includes a combination of money-center and market-state ap-proaches and several simplified sourcing rules. Although the regulation does not containa definition of financial institution, a definition is included as a suggested regulation in anappendix to the proposed regulation.
The apportionment formula for financial institutions is the standard three-factor formulaconsisting of equally weighted sales, payroll, and property factors. The sales factor isprimarily market-state focused, although it includes both market-state and money-centerapproaches. The payroll factor is similar to the general rules found in UDITPA and the MTCregulations. In addition to including all real and tangible personal property owned or leasedby the financial institution, the property factor includes two intangible assets: loans andcredit card receivables. The property factor does not, however, include currency, deposits,or foreclosed property. The receipts factor is primarily market-state or destination driven.The denominator of the receipts factor includes 1) receipts from the lease of real property,2) receipts from the lease of tangible personal property, 3) interest from loans secured byreal property, 4) interest from loans not secured by real property, 5) net gains from the saleof loans, 6) receipts from credit card receivables, 7) net gains from the sale of credit cardreceivables, 8) credit card issuers’ reimbursement fees, 9) receipts from merchant discounts,10) loan servicing fees, 11) receipts from services, 12) receipts from investment assets andactivities and trading assets and activities, and 13) all other receipts.
In 1994, the MTC adopted a model statute for apportioning the income of a financialinstitution [see Recommended Formula for the Apportionment and Allocation Of NetIncome of Financial Institutions (Nov. 17, 1994)].
Insurance Companies
Most states do not subject insurance companies to a corporate income tax. Many statesthat impose an income tax on insurance companies require those companies to use a single-factor premiums written formula to apportion income. The composition of the formula mayvary from state to state. For example, Connecticut provides that the numerator of the formulaconsists of a domestic insurance company’s gross direct premiums for insurance onproperty or risks located or resident in the state and the denominator consists of total grossdirect premiums received during the income year from all sources. When more than50 percent of the gross premiums received during the income year are reinsurance premi-ums, the fraction includes reinsurance premiums.
Some states require certain domestic insurance companies to use a two-factor premiumsand payroll apportionment formula. There are also a handful of states that have no specialapportionment rules for insurance companies.
Mutual Funds
Most states have not enacted or adopted special apportionment formulas for mutualfunds. An exception is Minnesota, which requires investment companies to use a single-factor apportionment formula whose numerator consists of the aggregate of the grosspayments collected during the taxable year from old and new business on investmentcontracts issued by the company and held by Minnesota residents and whose denominator
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consists of the total amount of the gross payments collected during the year from oldand new investment contracts issued by the company and held by persons residingeverywhere.
Some states have enacted special apportionment formulas for investment companyservice corporations. For example, Connecticut permits corporations that provide manage-ment, distribution, or administrative services (management services) to or on behalf of aregulated investment company to elect to apportion their net income directly or indirectlyrelated to the providing of those services using a single-factor apportionment formula. Thenumerator of the fraction consists of Connecticut receipts, and the denominator consists ofthe total receipts from the sale of management services to or on behalf of all the regulatedinvestment companies. Connecticut receipts are determined by multiplying receipts fromthe rendering of management services to or on behalf of each separate regulated investmentcompany by a fraction, the numerator of which is the average number of shares of suchregulated investment company owned by shareholders domiciled in Connecticut at thebeginning and end of the entity’s tax year and the denominator of which is the averagenumber of shares owned by all shareholders of the regulated investment company duringthat period. The statutory apportionment provisions in Massachusetts and Rhode Islandare similar to Connecticut’s rules.
Under legislation enacted by Kansas in 2002, investment fund service corporations thatemploy at least 100 full-time workers in Kansas may elect to apportion income to Kansasbased on the ratio of the mutual fund shares of the taxpayer’s clients that are owned byKansas residents to shares owned by shareholders everywhere. [Kan. S.B. 39 (May 30, 2002)]
Service Providers
In general, a service provider is defined as a corporation whose net income is not derivedprimarily from the manufacture, sale, or use of tangible personal or real property. The statesare split on whether to examine only a corporation’s in-state activities for purposes ofclassifying that entity as a service provider. Some states examine both a corporation’s in-state and out-of-state business activities to ascertain whether that company is a serviceprovider. Other states have indicated that they will make the determination based only onthe corporation’s in-state activities.
Virtually all of the states require service providers that are not covered under otherspecialized industry apportionment formulas (e.g., transportation companies) to use theirstate’s standard apportionment formula. Some states, however, require service providersthat are not covered under specialized industry apportionment formulas to use a single-factor gross receipts apportionment formula.
For purposes of sourcing gross receipts from the sale of services, most states continue toapply the “greater cost of performance” rule. Georgia, Iowa, Maryland, Minnesota, and Ohio,however, require the inclusion of gross receipts in the sales factor if the receipts are derivedfrom customers within the state or are otherwise attributable to the state’s marketplace.
Manufacturers, Retailers, and Lessors
Almost all states require manufacturers, retailers, and lessors of real and personalproperty to use their state’s standard apportionment formula. There are a few exceptionsto that general rule. Mississippi requires wholesalers, retailers, and lessors that do notengage in manufacturing to use a single-factor gross receipts formula. A manufacturer-retailer is required to use a three-factor property, payroll, and double-weighted sales factor
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apportionment formula; a manufacturer-wholesaler is required to use a three-factor prop-erty, payroll, and sales apportionment formula. Maryland requires a leasing company touse a two-factor receipts and property formula. If certain statutory conditions are met,Oklahoma permits a manufacturing enterprise whose only in-state activities consist ofmarketing its products to use a sales-only formula to apportion income. Minnesota permitstelephone sales or mail- order companies that have at least 99 percent of their property andpayroll within the state to use a sales-only formula to apportion income.
Some states have enacted special apportionment rules that generally benefit in-statemanufacturers. For example, as a result of legislation enacted in 2000, beginning in 2001manufacturers may use a sales-only formula in Connecticut and Massachusetts. In addition,in response to legislation enacted in 2001 (H.B. 11), the Maryland Comptroller of theTreasury adopted a rule that requires manufacturing corporations to use a sales-onlyformula. [Md. Regs. § 03.04.03.10 (Feb. 22, 2002)] Likewise, Florida permits a citrusprocessing company to apportion its income based solely on the sales factor. [Fla. Stat. Ann.§ 220.151(3)]
Television and Radio Broadcasters
In 1990, the MTC adopted a regulation dealing with the apportionment of businessincome by multistate taxpayers in the television and radio broadcasting industry. [MTCReg. IV.18(h)] The regulation modifies the standard three-factor property, payroll, and salesformula used to apportion business income. In April 1996, the MTC adopted amendmentsto the regulation in order to gain broader acceptance among the states.
The amended regulation covers a broadcaster over the public airwaves, by cable (director indirect), by satellite transmission, or by any other means of communication that istaxable in at least two states.
Property Factor. In general, the property factor denominator includes all owned andleased real and tangible personal property used in the broadcaster’s business. In the caseof rented studios, the net annual rental rate generally includes only the amount of a studio’sbasic or flat rental charge for the use of a stage or other permanent equipment. In addition,the denominator includes (at original cost) audiocassettes or videocassettes, discs, or othersimilar media containing film or radio programming that the taxpayer intends to sell forhome viewing or listening. A broadcaster is required to capitalize, at a rate of eight timesgross receipts, any license, royalty, or other fees that it receives from the licensing ofcassettes, discs, or other media for home viewing or listening. The property factor numeratorincludes all real and tangible personal property located or used in a particular state duringthe tax period. Property used in more than one state is allocated to a particular state on thebasis of number of days located or used within that state compared to the total number ofdays such property was owned or rented during the tax year. Outer-jurisdictional property(e.g., orbiting satellites, undersea transmission cables) and the value or cost attributable toany film or radio programming are excluded from both the numerator and denominator ofthe property factor.
Payroll Factor. The denominator of the payroll factor comprises all compensation,including residual and profit participation payments, paid to employees during the taxperiod; that includes compensation paid to directors, actors, newscasters, and other talentin their status as employees. Previously, the denominator could include amounts paid tothird parties for providing the services of directors, actors, newscasters, and other talent forlive programming if the payments constituted at least 25 percent of the total compensation
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paid to employees and the failure to include those amounts would not result in a properreflection of the taxpayer’s in-state activities. The payroll factor numerator comprisescompensation paid to employees as determined under the standard sourcing rules. Previ-ously, the numerator also included payments made to third parties.
Sales Factor. In general, the sales factor denominator includes all gross receipts (i.e.,domestic and foreign based) that a broadcaster derives in its trade or business. In determin-ing the sales factor numerator, an audience factor is used to ascertain the portion of abroadcaster’s in-state gross receipts—including advertising revenue—from live program-ming. A television or radio station’s in-state audience factor is the ratio of the broadcaster’sin-state viewing or listening audience to its total viewing or listening audience. A cabletelevision system’s in-state audience factor is the ratio of the system’s in-state subscribersto its total subscribers. Under the original MTC regulation, gross receipts derived frombroadcasts to audiences located outside the United States were excluded from the base towhich the audience factor was applied. In addition, the audience factor denominatorincluded only the U.S. viewing or listening audience and the U.S. total cable subscribers.Receipts from the sale, rental, or licensing of audiocassettes or videocassettes, discs, orsimilar media intended for home viewing or listening are sourced under the standardapportionment rules.
The States. Some states have conformed to the MTC broadcasting regulations. Forexample, in 2004, the Montana Department of Revenue adopted the MTC rules andguidelines for apportioning the income of companies in the business of broadcasting filmor radio programming, as well as companies in the business of publishing, selling, licensingor distributing printed material [Mont. Reg. 42.26. 1001 to 1103, Apr. 23, 2004]. Nonethe-less, a number of states have adopted their own rules that use an audience factor as a basisfor apportioning certain types of income. A majority of states have not adopted specializedapportionment rules for broadcasters. In at least one state—Maryland—a court has held thata revenue department’s attempt to use an audience factor to source advertising revenueconstituted improper rulemaking. [CBS, Inc. v. Comptroller of the Treasury, 319 Md. 687(1990)] Maryland treats broadcasters as service providers. In 2002, Louisiana enactedlegislation providing that broadcast revenue be apportioned using an audience factor. [La.H.B. 141 (June 25, 2002)]
Other Specialized Industries. Modifications to the general three-factor formula forspecialized industries can range from minor to monumental. For example, some statesrequire construction contractors to modify the property factor to account for constructionin progress, regardless of the accounting method used. In determining apportionment forthe railroad industry, the MTC regulations have modified the property factor for movableproperty (based on railroad car miles). The sales factor is also adjusted for freight andpassenger miles. Some states have enacted similar statutes for trucking companies. Forinterstate carriers, the usual three factors have been modified for mobile property, payrollof personnel moving interstate, and sales of personal property hauled interstate. Themodified formula generally uses a ratio of mobile property miles in the three factors.
MTC Regulation IV.18(j) governs the apportionment of business income derived frompublishing, selling, licensing, or distributing printed materials. The publishing regulationprovides for the use of the standard three-factor formula consisting of evenly weighted sales,payroll, and property factors. Under the regulation, publishing revenues and advertisingreceipts are included in the numerator of the sales factor based on a circulation factor. Thecirculation factor, which must be determined for each publication or printed material thatincludes advertising, generally is equal to the ratio that the taxpayer’s in-state circulation
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to purchasers and subscribers of printed material bears to its total circulation to purchasersand subscribers as determined by reference to rating statistics. Like the sales factor in otherMTC regulations, the sales factor in the publishing regulation includes a throwbackprovision. The publishing regulation’s payroll factor is similar to the general rules foundin UDITPA and the other MTC regulations. In addition to including all owned and rentedreal and tangible personal property, the property factor includes orbiting satellites andundersea transmission cables that are used in the business. The cost of outer-jurisdictionalproperty to be included in the numerator of the property factor for a given state generallyis determined by the number of uplinks and downlinks that were used to transmitinformation from and receive information in that state.
A taxpayer generally is permitted to petition for, or a tax administrator is allowed torequire, alternative apportionment methods if the normal apportionment and allocationprovisions do not fairly represent the extent of the taxpayer’s business activity in the state.Relief under such a provision generally is accomplished by excluding one or more factors,including one or more additional factors, or modifying the methodology of the existingfactors.
State-by-State Summary
The chart that follows is divided into three parts for ease of presentation. Part 1summarizes the apportionment formulas for airlines, trucking companies, telecommunica-tions companies, and sports and entertainment companies. Part 2 covers financial institu-tions, insurance companies, and mutual funds. Part 3 summarizes the apportionmentformulas for service companies, retailers, and broadcasters.
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Spe
cial
ized
Ind
ustr
y Fo
rmul
as (
Par
t 1)
Lege
nd:
NA
Not
app
licab
leN
RN
ot r
epor
ted
Inte
rsta
te A
irW
eigh
ted
Equa
lly?
Inte
rsta
teM
otor
Veh
icle
sW
eigh
ted
Equa
lly?
Tele
com
mun
icat
ions
Wei
ghte
d Eq
ually
?
Spo
rts/
Ente
rtai
nmen
t Ac
tiviti
esW
eigh
ted
Equa
lly?
Alab
ama
Gro
ss r
ecei
pts
or
sale
s; p
ayro
ll; t
angi
ble
prop
erty
; m
ileag
e
Yes
Gro
ss r
ecei
pts
or
sale
s; p
ayro
ll; t
angi
ble
prop
erty
; m
ileag
e
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Alas
kaTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Ariz
ona
Rev
enue
mile
sN
o, s
ales
do
uble
-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Arka
nsas
Gro
ss r
ecei
pts
or
sale
sN
AM
ileag
eN
ATa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Cal
iforn
iaTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Col
orad
oM
TC s
peci
al
regu
latio
nsYe
sM
TC s
peci
al
regu
latio
nsYe
sTa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or s
ales
; pay
-ro
ll. O
ptio
nal a
ppor
tion-
men
t for
mul
a ta
ngib
le
prop
erty
; gro
ss re
ceip
ts
or s
ales
Yes
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sal
es; p
ay-
roll.
Opt
iona
l app
ortio
n-m
ent f
orm
ula
tang
ible
pr
oper
ty; g
ross
rece
ipts
or
sal
es
Yes
Con
nect
icut
Arriv
als/
depa
rtur
es;
reve
nue
tons
; or
igin
at-
ing
reve
nue
Yes
Mile
age
NA
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Spe
cial
ized
Ind
ustr
y Fo
rmul
as (
Par
t 1)
(con
tinue
d)
Lege
nd:
NA
Not
app
licab
leN
RN
ot r
epor
ted
Inte
rsta
te A
irW
eigh
ted
Equa
lly?
Inte
rsta
teM
otor
Veh
icle
sW
eigh
ted
Equa
lly?
Tele
com
mun
icat
ions
Wei
ghte
d Eq
ually
?
Spo
rts/
Ente
rtai
nmen
t Ac
tiviti
esW
eigh
ted
Equa
lly?
I-518
Del
awar
eTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Dis
tric
t of
Col
umbi
aR
even
ue t
ons;
rev
e-nu
e m
iles
No,
1/ 3,
2 /3
Rev
enue
ton
s; r
eve-
nue
mile
sN
o, 1
/ 3,
2 /3
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Flor
ida
Rev
enue
mile
sN
AR
even
ue m
iles
NA
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Geo
rgia
Rev
enue
mile
s, t
ons
hand
led,
orig
inat
ing
reve
nue
No,
reve
-nu
e do
uble
-w
eigh
ted
Sam
e as
oth
er
busi
ness
esN
AS
ame
as o
ther
bu
sine
sses
NA
Sam
e as
oth
er
busi
ness
esN
A
Haw
aii
Rev
enue
ton
s; fl
ight
or
igin
atin
g re
venu
e;
fligh
t op
erat
ing
hour
s
Yes
NA
NA
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Idah
oTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d;
sing
le
wei
ghte
d sa
les
fac-
tor
for
tele
-ph
one
cor-
pora
tions
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
I-519
Illin
ois
Rev
enue
mile
sN
AR
even
ue m
iles
NA
Gro
ss re
ceip
ts o
r sal
esSee
Not
e 1.
Gro
ss re
ceip
ts o
r sal
esSee
Not
e 1.
Not
e 1
. Fo
r ta
xabl
e ye
ars
endi
ng o
n or
aft
er 1
2/3
1/0
0, t
he a
ppor
tionm
ent
fact
or f
or t
axpa
yers
with
bus
ines
s in
com
e is
cal
cula
ted
usin
g on
ly t
he s
ales
fac
tor.
See
IITA
30
4(a
), (h
). F
or
taxa
ble
year
s en
ding
aft
er 1
2/3
1/9
9 a
nd b
efor
e 1
2/3
1/0
0, p
rope
rty
81 /
3,pa
yrol
l 81 /
3,an
d sa
les
83
1 /3.
Indi
ana
Tang
ible
pro
pert
y, p
ay-
roll,
gro
ss r
ecei
pts
or
sale
s
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y; p
ay-
roll;
gro
ss r
ecei
pts
or
sale
s
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Iow
aM
ileag
eN
AM
ileag
eN
AG
ross
rec
eipt
s or
sal
esN
AG
ross
rec
eipt
s or
sal
esN
A
Kan
sas
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Mile
age
NA
Fibe
ropt
ic m
ileag
eN
ATa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
Yes
Ken
tuck
yLi
ne m
ileag
e of
pu
blic
util
ities
; gro
ss re-
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Line
mile
age
of p
ublic
ut
ilitie
s; g
ross
rec
eipt
s or
sal
es; p
ayro
ll
No,
sal
es
doub
le-
wei
ghte
d
Line
mile
age
of p
ublic
ut
ilitie
s; g
ross
rec
eipt
s or
sal
es; p
ayro
ll
No,
sal
es
doub
le-
wei
ghte
d
Line
mile
age
of p
ublic
ut
ilitie
s; g
ross
rec
eipt
s or
sal
es; pa
yrol
l
No,
sal
es
doub
le-
wei
ghte
d
Loui
sian
aTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
sYe
sTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
sYe
sTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
or p
ay-
roll
and
sale
s
Yes
Mai
neTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Mar
ylan
dTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
Yes
One
-fact
or for
mul
a of
sa
les
allo
cate
d on
ba-
sis
of r
even
ue m
iles
NA
Gro
ss r
ecei
pts
or
sale
s; t
angi
ble
prop
-er
ty; pa
yrol
l
No,
sal
es
doub
le-
wei
ghte
d
Gro
ss r
ecei
pts
or
sale
s; t
angi
ble
prop
-er
ty; pa
yrol
l
No,
sal
es
doub
le-
wei
ghte
d
Mas
sach
uset
tsTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
sal
es
doub
le-
wei
ghte
d.
Tang
ible
pro
pert
y; p
ay-
roll;
gro
ss r
ecei
pts
or
sale
s
No,
sal
es
doub
le-
wei
ghte
d.
NR
NR
NR
NR
Mic
higa
n (S
in-
gle
Bus
ines
sTa
x—VA
T)
Rev
enue
mile
sN
AR
even
ue m
iles
NA
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
5%
, 90%
, 5%
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
5%
, 90%
, 5%
Spe
cial
ized
Ind
ustr
y Fo
rmul
as (
Par
t 1)
(con
tinue
d)
Lege
nd:
NA
Not
app
licab
leN
RN
ot r
epor
ted
Inte
rsta
te A
irW
eigh
ted
Equa
lly?
Inte
rsta
teM
otor
Veh
icle
sW
eigh
ted
Equa
lly?
Tele
com
mun
icat
ions
Wei
ghte
d Eq
ually
?
Spo
rts/
Ente
rtai
nmen
t Ac
tiviti
esW
eigh
ted
Equa
lly?
I-520
Min
neso
taR
even
ue t
ons;
pay
roll;
ta
ngib
le p
rope
rty
No,
75%
, 12.5
%,
12.5
%
Tang
ible
pro
pert
y; p
ay-
roll;
gro
ss r
ecei
pts
or
sale
s
No,
12.5
%,
12.5
%,
75%
Prop
erty
; pa
yrol
l; gr
oss
rece
ipts
or
sale
sN
o, 1
2.5
%,
12.5
%,
70%
Prop
erty
; pay
roll;
gro
ss
rece
ipts
or s
ales
. All
in-
com
e fro
m th
e op
era-
tion
of a
n at
hlet
ic te
am
whe
n th
e vi
sitin
g te
am
does
not
sha
re in
the
gate
rece
ipts
is a
s-si
gned
to th
e st
ate
in
whi
ch th
e te
am’s
ope
ra-
tion
is b
ased
.
No,
12.5
%,
12.5
%,
75%
Mis
siss
ippi
Rev
enue
mile
s, o
r flig
ht
mile
sN
AR
even
ue t
ons;
or
vehi
cle
mile
sN
AG
ross
rec
eipt
s or
sal
esN
AG
ross
rec
eipt
s or
sal
esN
A
Mis
sour
iR
even
ue m
iles
NA
Rev
enue
mile
sN
ALi
ne m
ileag
e of
pub
lic
utili
ties
NA
Prop
erty
; pa
yrol
l gro
ss
rece
ipts
or
sale
sYe
s
Mon
tana
Oth
er, s
ee A
RM
42.2
6.8
01–8
07
Yes
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sal
es; p
ay-
roll;
reve
nue
mile
s
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Neb
rask
aD
epar
ture
s w
eigh
ted
to
cost
and
val
ueN
AM
obile
pro
pert
y m
iles
NA
Gro
ss r
ecei
pts
or s
ales
NA
Gro
ss r
ecei
pts
or s
ales
NA
Nev
ada
Nev
ada
does
not
impo
se a
cor
pora
te in
com
e ta
x. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New
Ham
pshi
reN
RN
RN
RN
RN
RN
RN
RN
R
I-521
New
Jer
sey
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
(spe
cial
ru
les
on t
angi
ble
per-
sona
l pro
pert
y)
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
(spe
cial
ru
le for
rec
eipt
s)
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
New
Mex
ico
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Rev
enue
mile
sN
ATa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
New
Yor
kAr
rival
s/de
part
ures
; or
igin
atin
g re
venu
e;
reve
nue
tons
Yes
Rev
enue
mile
sN
AN
AN
ATa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
sal
es
doub
le-
wei
ghte
dD
oes
not
refle
ct s
peci
al s
ourc
ing
for
rece
ipts
of m
any
of t
hese
indu
strie
s.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nor
th C
arol
ina
Rev
enue
mile
sN
AR
even
ue m
iles
NA
Gro
ss r
ecei
pts
or s
ales
NA
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Nor
th D
akot
aTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
Yes
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sal
es; p
ayro
ll (re
venu
e m
iles
for i
nter
-st
ate)
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Ohi
oTa
ngib
le p
rope
rty;
net
sa
les;
pay
roll
No,
20%
, 60%
, 20%
Tang
ible
pro
pert
y; n
et
sale
s; p
ayro
llN
o, 2
0%
, 60%
, 20%
Tang
ible
pro
pert
y; n
et
sale
s; p
ayro
llN
o, 2
0%
, 60%
, 20%
Tang
ible
pro
pert
y; n
et
sale
s; p
ayro
llN
o, 2
0%
, 60%
, 20%
Okl
ahom
aTa
ngib
le p
rope
rty;
pay
-ro
ll; r
even
ue m
iles
Yes
Tang
ible
pro
pert
y; p
ay-
roll;
rev
enue
ton
sYe
sTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Ore
gon
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
(dep
ar-
ture
s us
ed t
o de
ter-
min
e nu
mer
ator
)
No,
10%
, 80%
, 10%
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
(rev
enue
m
iles
used
to
dete
r-m
ine
num
erat
or)
No,
10%
, 80%
, 10%
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
10%
, 80%
, 10%
; fo
r ta
x ye
ars
be-
ginn
ing
on
or a
fter
5/1
/03
may
ele
ct
25%
, 50%
, 25%
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
10%
, 80%
, 10%
Spe
cial
ized
Ind
ustr
y Fo
rmul
as (
Par
t 1)
(con
tinue
d)
Lege
nd:
NA
Not
app
licab
leN
RN
ot r
epor
ted
Inte
rsta
te A
irW
eigh
ted
Equa
lly?
Inte
rsta
teM
otor
Veh
icle
sW
eigh
ted
Equa
lly?
Tele
com
mun
icat
ions
Wei
ghte
d Eq
ually
?
Spo
rts/
Ente
rtai
nmen
t Ac
tiviti
esW
eigh
ted
Equa
lly?
I-522
Penn
sylv
ania
Rev
enue
mile
sN
AR
even
ue m
iles
NA
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
20%
, 60%
, 20%
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
20%
, 60%
, 20%
Rho
de Is
land
Spe
cial
reg
ulat
ion
NA
Spe
cial
reg
ulat
ion
NA
Spe
cial
reg
ulat
ion
NA
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Sou
th C
arol
ina
Rev
enue
ton
sN
AR
even
ue m
iles
NA
Gro
ss r
ecei
pts
or s
ales
NA
Gro
ss r
ecei
pts
or s
ales
NA
Sou
th D
akot
aS
outh
Dak
ota
does
not
impo
se a
cor
pora
te in
com
e ta
x.. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tenn
esse
eG
ross
rec
eipt
s or
sa
les;
rev
enue
mile
sYe
sG
ross
rec
eipt
s or
sa
les;
rev
enue
mile
sYe
sTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Texa
sG
ross
rec
eipt
sN
AG
ross
rec
eipt
sN
AG
ross
rec
eipt
sN
AG
ross
rec
eipt
sN
A
Uta
hTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Verm
ont
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
I-523
Virg
inia
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll,
pro
pert
y an
d sa
les
fact
ors
are
calc
ulat
ed u
sing
mile
-ag
e, in
clud
ing
over
-fli
ght
mile
s, in
the
nu
mer
ator
and
den
omi-
nato
r w
ith u
se o
f de
part
ures
as
an
alte
rnat
ive.
No,
sal
es
doub
le-
wei
ghte
d
Mile
age
NA
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Was
hing
ton
Was
hing
ton
does
not
impo
se a
cor
pora
te in
com
e ta
x. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wes
t Virg
inia
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Rev
enue
mile
sN
ATa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
sal
es
doub
le-
wei
ghte
d
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es
doub
le-
wei
ghte
d
Wis
cons
inR
even
ue t
ons
han-
dled
; ar
rival
s/de
par-
ture
s; o
rigin
atin
g re
ve-
nue;
Rul
e Ta
x 2.4
6
Yes
Orig
inat
ing
reve
nue;
re
venu
e or
ton
mile
s;
Rul
e Ta
x 2.4
7
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll;
Rul
e Ta
x 2.5
05
No,
sal
es
doub
le-
wei
ghte
d
Wyo
min
gW
yom
ing
does
not
impo
se a
cor
pora
te in
com
e ta
x. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I-524
Spe
cial
ized
Ind
ustr
y Fo
rmul
as (
Par
t 2)
Lege
nd:
NA
Not
app
licab
leN
RN
ot r
epor
ted
Fina
ncia
l Ins
titut
ions
Wei
ghte
d Eq
ually
?In
sura
nce
Com
pani
esW
eigh
ted
Equa
lly?
Mut
ual F
unds
Wei
ghte
d Eq
ually
?
Alab
ama
NA,
fina
ncia
l ins
titut
ions
m
ust
file
an e
xcis
e ta
x re
turn
.
NA
NA,
insu
ranc
e co
mpa
nies
pa
y pr
emiu
m t
ax (D
ept.
of
Insu
ranc
e).
NA
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll
Yes
Alas
kaTa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or
sale
s; p
ayro
llYe
sEx
empt
NA
Tang
ible
pro
pert
y; g
ross
re
ceip
ts; pa
yrol
lYe
s
Ariz
ona
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Arka
nsas
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll
Yes
Exem
pt if
pay
Ark
ansa
s pr
e-m
ium
tax
; if
taxa
ble,
tan
gi-
ble
prop
erty
; gr
oss
rece
ipts
or
sal
es; pa
yrol
l
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll
Yes
Cal
iforn
iaTa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or
sale
s; p
ayro
llYe
sN
AN
ATa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or
sale
s; p
ayro
llN
o, s
ales
dou
ble-
wei
ghte
d
Col
orad
oM
TC S
peci
al R
egul
atio
nsYe
sS
ubje
ct t
o in
sura
nce
pre-
miu
m t
axN
AS
tand
ard
UD
ITPA
: Ta
ngib
le
prop
erty
; gr
oss
rece
ipts
or
sale
s; p
ayro
ll (o
ptio
nal
appo
rtio
nmen
t fo
rmul
a in
clud
es t
angi
ble
prop
erty
; gr
oss
rece
ipts
or
sale
s)
Yes
Con
nect
icut
Gro
ss r
ecei
pts
or s
ales
NA
Exem
ptN
AEx
empt
NA
Del
awar
eN
A, e
xem
pt fro
m c
orpo
rate
in
com
e ta
xN
AN
A, e
xem
pt fro
m c
orpo
rate
in
com
e ta
xN
ATa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or
sale
s; p
ayro
llYe
s
Dis
tric
t of
Col
umbi
aG
ross
rec
eipt
s or
sal
es;
payr
oll
Yes
NA,
exe
mpt
fro
m c
orpo
rate
in
com
e ta
xN
ATa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or
sale
s; p
ayro
llYe
s
I-525
Flor
ida
Inta
ngib
les
and
tang
ible
pr
oper
ty; gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
sal
es d
oubl
e-w
eigh
ted
Prem
ium
s w
ritte
nN
ATa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or
sale
s; p
ayro
llN
o, s
ales
dou
ble-
wei
ghte
d
Geo
rgia
Sam
e as
oth
er b
usin
esse
sN
AN
A, e
xem
pt if
sub
ject
to
prem
ium
s ta
xN
AS
ame
as o
ther
bus
ines
ses
NA
Haw
aii
NA
NA
NA
NA
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll
Yes
Idah
oTa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or
sale
s; p
ayro
llN
o, s
ales
dou
ble-
w
eigh
ted
Exem
pt if
pay
a p
rem
ium
s ta
x.N
ATa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or
sale
s; p
ayro
llN
o, s
ales
dou
ble-
wei
ghte
d
Illin
ois
Bus
ines
s in
com
e so
urce
d in
Ill
inoi
s, s
ee II
TA §
304(c
)N
APr
emiu
ms
writ
ten
NA
Bus
ines
s in
com
e so
urce
d in
Ill
inoi
s, s
ee II
TA §
304(c
)N
A
Indi
ana
Gro
ss r
ecei
pts
or s
ales
NA
Prem
ium
s w
ritte
nN
RG
ross
rec
eipt
s or
sal
esN
A
Iow
aS
ubje
ct t
o Io
wa
fran
chis
e ta
xN
AS
ubje
ct t
o Io
wa
prem
ium
s ta
xN
AEx
empt
fro
m t
axN
A
Kan
sas
Exem
pt fro
m c
orpo
rate
in
com
e ta
x (b
anks
, cre
dit
unio
ns, s
avin
gs a
nd lo
ans)
NA
Exem
pt fro
m c
orpo
rate
in
com
e ta
x (d
oes
not
incl
ude
agen
cies
)
NA
See
app
ortio
nmen
t m
etho
d fo
r in
vest
men
t fu
nd s
ervi
ce
corp
orat
ions
.
NA
Ken
tuck
yG
ross
rec
eipt
s or
sal
es;
payr
oll;
Line
mile
age
of
publ
ic u
tiliti
es
No,
sal
es d
oubl
e-w
eigh
ted
Exem
pt fro
m c
orpo
rate
in
com
e ta
xN
ALi
ne m
ileag
e of
pub
lic
utili
ties;
gro
ss r
ecei
pts
or
sale
s; p
ayro
ll
No,
sal
es d
oubl
e-w
eigh
ted
Loui
sian
aTa
ngib
le p
rope
rty;
pay
roll
Yes
Oth
er. S
ee L
a. R
ev. S
tat.
47:2
21 a
nd 4
7:2
27
NA
NA,
no
spec
ific
appo
rtio
n-m
ent
form
ula
exis
tsN
A
Mai
neTa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or
sale
s; p
ayro
llN
o, s
ales
dou
ble-
wei
ghte
dPr
emiu
ms
writ
ten
if su
bjec
t to
pre
miu
ms
tax
NA
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll.
M
ay e
lect
spe
cial
app
ortio
n-m
ent
unde
r § 5
212
No,
gro
ss r
ecei
pts
or s
ales
dou
ble-
wei
ghte
d
Spe
cial
ized
Ind
ustr
y Fo
rmul
as (
Par
t 2)
(con
tinue
d)
Lege
nd:
NA
Not
app
licab
leN
RN
ot r
epor
ted
Fina
ncia
l Ins
titut
ions
Wei
ghte
d Eq
ually
?In
sura
nce
Com
pani
esW
eigh
ted
Equa
lly?
Mut
ual F
unds
Wei
ghte
d Eq
ually
?
I-526
Mar
ylan
dG
ross
rec
eipt
s or
sal
es; ta
n-gi
ble
prop
erty
; pa
yrol
lN
o, s
ales
dou
ble-
wei
ghte
dG
ross
rec
eipt
s or
sal
es; ta
x ad
min
iste
red
by t
he D
epar
t-m
ent
of L
icen
sing
and
Reg
u-la
tion,
Insu
ranc
e D
ivis
ion
NA
Exem
pt fro
m t
axN
A
Mas
sach
uset
tsS
ee T
IRs
95-1
, 00-0
6 0
4-6
; LR
01-9
NA
NR
NA
NR
NA
Mic
higa
n(S
ingl
eB
usin
ess
Tax—
VAT)
Gro
ss b
usin
ess
NA
Prem
ium
s w
ritte
nN
AG
ross
rec
eipt
s or
sal
es;
tang
ible
pro
pert
y; p
ayro
llN
o, 9
0%
, 5%
, 5%
Min
neso
taTa
ngib
le p
rope
rty
(incl
udes
re
ceiv
able
s); pa
yrol
l; gr
oss
rece
ipts
or
sale
s
No,
12.5
%, 1
2.5
%,
75%
NA
NA
Gro
ss r
ecei
pts
or s
ales
NA
Mis
siss
ippi
Tang
ible
pro
pert
y; p
ayro
ll;
sale
s or
gro
ss r
ecei
pts
Yes
Sep
arat
e ac
coun
ting
NA
Gro
ss r
ecei
pts
or s
ales
NA
Mis
sour
iTa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or
sale
s; p
ayro
llYe
sEx
empt
fro
m t
axN
AEx
empt
fro
m t
axN
A
Mon
tana
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll
Yes
Sub
ject
to
prem
ium
s ta
xN
ATa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or
sale
s; p
ayro
llYe
s
Neb
rask
aEx
empt
fro
m t
axN
APr
emiu
ms
writ
ten
NA
Gro
ss r
ecei
pts
or s
ales
NA
Nev
ada
Nev
ada
does
not
impo
se a
cor
pora
te in
com
e ta
x. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I-527
New
Ham
pshi
reN
RN
RN
RN
RN
RN
R
New
Jer
sey
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll
Sal
es d
oubl
e-w
eigh
ted;
spe
cial
ra
te for
reg
ulat
ed
inve
stm
ent
com
pani
es
Taxe
d un
der
insu
ranc
e pr
emiu
m t
axN
ATa
ngib
le p
rope
rty;
gro
ss
rece
ipts
; pa
yrol
l (sp
ecia
l ru
les
for
man
agem
ent
com
-pa
nies
and
spe
cial
rat
e fo
r re
gula
ted
inve
stm
ent
com
pani
es)
Sal
es d
oubl
e-w
eigh
ted
New
Mex
ico
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll
Yes
New
Yor
kFo
r ban
ks o
nly,
rece
ipts
; pa
yrol
l (ex
cept
gen
eral
ex
ecut
ive
offic
ers)
; dep
osits
No
Prem
ium
writ
ten;
sal
arie
sN
o, 9
0%
, 10%
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Doe
s no
t re
flect
spe
cial
sou
rcin
g ru
les
for
rece
ipts
of m
any
of t
hese
indu
strie
s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nor
th C
arol
ina
Gro
ss r
ecei
pts
or s
ales
NA
Prem
ium
s w
ritte
nN
AG
ross
rec
eipt
s or
sal
esN
A
Nor
th D
akot
aU
se N
DC
C C
h. 5
7-3
5.3
NA
Exem
pt if
Pre
miu
ms
Tax
paid
NA
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pa
yrol
l
Yes
Ohi
oN
et w
orth
onl
yN
AN
AN
AN
AN
A
Okl
ahom
aS
epar
ate
acco
untin
gN
AEx
empt
(pr
emiu
ms
tax
impo
sed)
NA
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll
Yes
Ore
gon
Tang
ible
pro
pert
y an
d in
tan-
gibl
e pr
oper
ty; gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
10%
, 80%
, 10%
Payr
oll;
prem
ium
s w
ritte
n; re
al
esta
te in
com
e an
d in
tere
st o
n re
al p
rope
rty
loan
s
Yes
NR
NR
Penn
sylv
ania
Valu
e of
sha
res
NA
Prem
ium
s w
ritte
nN
AN
AN
A
Rho
de Is
land
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll
Yes
Prem
ium
s w
ritte
nN
ATa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or
sale
s; p
ayro
llYe
s
Spe
cial
ized
Ind
ustr
y Fo
rmul
as (
Par
t 2)
(con
tinue
d)
Lege
nd:
NA
Not
app
licab
leN
RN
ot r
epor
ted
Fina
ncia
l Ins
titut
ions
Wei
ghte
d Eq
ually
?In
sura
nce
Com
pani
esW
eigh
ted
Equa
lly?
Mut
ual F
unds
Wei
ghte
d Eq
ually
?
I-528
Sou
th C
arol
ina
Gro
ss r
ecei
pts
or s
ales
NA
Prem
ium
tax
pai
d to
Insu
r-an
ce C
omm
issi
onN
AG
ross
rec
eipt
s or
sal
esN
A
Sou
th D
akot
aS
outh
Dak
ota
does
not
impo
se a
cor
pora
te in
com
e ta
x. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tenn
esse
eR
ecei
vabl
es (al
l fina
ncin
g in
com
e)N
APr
emiu
ms
writ
ten
NA
Gro
ss r
ecei
pts
or s
ales
NA
Texa
sG
ross
rec
eipt
s or
sal
esN
AEx
empt
fro
m fra
nchi
se t
ax if
an
nual
gro
ss p
rem
ium
s in
sura
nce
tax
is p
aid
NA
Gro
ss r
ecei
pts
or s
ales
NA
Uta
hTa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or
sale
s; p
ayro
llYe
sTa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or
sale
s; p
ayro
llYe
sTa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or
sale
s; p
ayro
llYe
s
Verm
ont
Tang
ible
pro
pert
y; g
ross
re
ceip
ts o
r sa
les;
pay
roll
Yes
Exem
ptN
ATa
ngib
le p
rope
rty;
gro
ss
rece
ipts
or
sale
s; p
ayro
llYe
s
Virg
inia
Cos
t of
per
form
ance
NA
Exem
pt (pr
emiu
m t
ax in
lieu
of
inco
me
tax)
NA
Exem
pt (pa
ss t
hrou
gh
entit
y)N
A
Was
hing
ton
Was
hing
ton
does
not
impo
se a
cor
pora
te in
com
e ta
x. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wes
t Virg
inia
Gro
ss r
ecei
pts
or s
ales
NA
Tang
ible
pro
pert
y; g
ross
re-
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e w
eigh
ted
Tang
ible
pro
pert
y; g
ross
re-
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Wis
cons
inG
ross
rec
eipt
s or
sal
es;
payr
oll;
Rul
e Ta
x 2.4
9Ye
sPr
emiu
ms
writ
ten;
pay
roll
Yes
Tang
ible
pro
pert
y; g
ross
re-
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Wyo
min
gW
yom
ing
does
not
impo
se a
cor
pora
te in
com
e ta
x. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I-529
Spe
cial
ized
Ind
ustr
y Fo
rmul
as (
Par
t 3)
Lege
nd:
NA
Not
app
licab
leN
RN
ot r
epor
ted
Ser
vice
Bus
ines
sW
eigh
ted
Equa
lly?
Ret
aile
rsW
eigh
ted
Equa
lly?
Bro
adca
stin
gW
eigh
ted
Equa
lly?
Alab
ama
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Alas
kaTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Ariz
ona
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Arka
nsas
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Cal
iforn
iaTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Col
orad
oTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll (O
p-tio
nal a
ppor
tionm
ent
form
ula
incl
udes
tan
gi-
ble
prop
erty
; gr
oss
re-
ceip
ts o
r sa
les)
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
(op-
tiona
l app
ortio
nmen
t fo
rmul
a in
clud
es t
angi
-bl
e pr
oper
ty; gr
oss
re-
ceip
ts o
r sa
les)
Yes
MTC
Spe
cial
R
egul
atio
ns
NA
Con
nect
icut
Gro
ss r
ecei
pts
or
sale
sN
ATa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
sal
es d
oubl
e-w
eigh
ted
Gro
ss r
ecei
pts
or
sale
sN
A
Spe
cial
ized
Ind
ustr
y Fo
rmul
as (
Par
t 3)
(con
tinue
d)
Lege
nd:
NA
Not
app
licab
leN
RN
ot r
epor
ted
Ser
vice
Bus
ines
sW
eigh
ted
Equa
lly?
Ret
aile
rsW
eigh
ted
Equa
lly?
Bro
adca
stin
gW
eigh
ted
Equa
lly?
I-530
Del
awar
eTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Dis
tric
t of
Col
umbi
aTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Flor
ida
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Geo
rgia
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Haw
aii
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Idah
oTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
sal
es d
oubl
e-w
eigh
ted;
sin
gle-
wei
ghte
d sa
les
fact
or
for
elec
tric
al
com
pani
es
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted;
sin
gle-
wei
ghte
d sa
les
fact
or
for
elec
tric
al
com
pani
es
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es fac
tor
doub
led
Illin
ois
Gro
ss r
ecei
pts
or
sale
sS
ee N
ote
1.
Gro
ss r
ecei
pts
or
sale
sS
ee N
ote
1.
Gro
ss r
ecei
pts
or
sale
sS
ee N
ote
1.
Not
e 1
. Fo
r ta
xabl
e ye
ars
endi
ng o
n or
aft
er 1
2/3
1/0
0, t
he a
ppor
tionm
ent
fact
or f
or t
axpa
yers
with
bus
ines
s in
com
e is
cal
cula
ted
usin
g on
ly t
he s
ales
fac
tor.
See
IITA
§ 3
04
(a),
(h).
Fo
r ta
xabl
e ye
ars
endi
ng a
fter
12/3
1/9
9 a
nd b
efor
e 12/3
1/0
0, p
rope
rty
81 /
3,pa
yrol
l 81 /
3,an
d sa
les
83
1 /3.
I-531
Indi
ana
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Iow
aG
ross
rec
eipt
s or
sa
les
NA
Gro
ss r
ecei
pts
or
sale
sN
APo
pula
tion
NA
Kan
sas
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Ken
tuck
yLi
ne m
ileag
e of
pub
lic
utili
ties;
gro
ss r
e-ce
ipts
or
sale
s; p
ayro
ll
No,
sal
es d
oubl
e-w
eigh
ted
Line
mile
age
of p
ublic
ut
ilitie
s; g
ross
re-
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Line
mile
age
of p
ublic
ut
ilitie
s; g
ross
re-
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Loui
sian
aG
ross
rec
eipt
s or
sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tele
visi
on, r
adio
, and
ot
her
broa
dcas
ting,
se
e R
.S.
§ 4
7.2
87.9
5(k
)
NA
Mai
neTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Mar
ylan
dG
ross
rec
eipt
s or
sa
les;
tan
gibl
e pr
op-
erty
; pa
yrol
l
No,
sal
es d
oubl
e w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Gro
ss r
ecei
pts
or
sale
s; t
angi
ble
prop
-er
ty; pa
yrol
l
No,
sal
es d
oubl
e-w
eigh
ted
Mas
sach
uset
tsN
RN
RN
RN
RN
RN
R
Mic
higa
n (S
ingl
eB
usin
ess
Tax—
VAT)
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
5%
, 90%
, 5%
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
5%
, 90%
, 5%
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
5%
, 90%
, 5%
Min
neso
taTa
ngib
le p
rope
rty;
pay
-ro
ll; g
ross
rec
eipt
s or
sa
les
No,
12.5
%, 1
2.5
%,
75%
Tang
ible
pro
pert
y; p
ay-
roll;
gro
ss r
ecei
pts
or
sale
s
No,
12.5
%, 1
2.5
% a
nd
75%
Tang
ible
pro
pert
y; p
ay-
roll;
gro
ss r
ecei
pts
or
sale
s
No,
12.5
%, 1
2.5
% a
nd
75%
Spe
cial
ized
Ind
ustr
y Fo
rmul
as (
Par
t 3)
(con
tinue
d)
Lege
nd:
NA
Not
app
licab
leN
RN
ot r
epor
ted
Ser
vice
Bus
ines
sW
eigh
ted
Equa
lly?
Ret
aile
rsW
eigh
ted
Equa
lly?
Bro
adca
stin
gW
eigh
ted
Equa
lly?
I-532
Mis
siss
ippi
Gro
ss r
ecei
pts
or
sale
sN
AG
ross
rec
eipt
s or
sa
les
NA
Gro
ss r
ecei
pts
or
sale
sN
A
Mis
sour
iTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Mon
tana
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Neb
rask
aG
ross
rec
eipt
s or
sa
les
NA
Gro
ss r
ecei
pts
or
sale
sN
AG
ross
rec
eipt
s or
sa
les
NA
Nev
ada
Nev
ada
does
not
impo
se a
cor
pora
te in
com
e ta
x.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
New
Ham
pshi
reN
RN
RN
RN
RN
RN
R
New
Jer
sey
Tang
ible
pro
pert
y;
gros
s re
ceip
ts
or s
ales
; pa
yrol
l (s
peci
al r
ule
for
rece
ipts
)
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
(spe
cial
ru
le for
rec
eipt
s)
No,
sal
es d
oubl
e-w
eigh
ted
New
Mex
ico
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
I-533
New
Yor
kTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Doe
s no
t re
flect
spe
cial
sou
rcin
g ru
les
for
rece
ipts
of m
any
of t
hese
indu
strie
s.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nor
th C
arol
ina
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Gro
ss r
ecei
pts
or
sale
sN
A
Nor
th D
akot
aTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Ohi
oTa
ngib
le p
rope
rty;
net
sa
les;
pay
roll
No,
20%
, 60%
, 20%
Tang
ible
pro
pert
y; n
et
sale
s; p
ayro
llN
o, 2
0%
, 60%
, 20%
Tang
ible
pro
pert
y; n
et
sale
s; p
ayro
llN
o, 2
0%
, 60%
, 20%
Okl
ahom
aTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Ore
gon
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
10%
, 80%
, 10%
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
10%
, 80%
, 10%
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
(num
era-
tor
dete
rmin
ed b
y O
re-
gon
audi
ence
ove
r au
-di
ence
eve
ryw
here
)
No,
10%
, 80%
, 10%
Penn
sylv
ania
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
20%
, 60%
, 20%
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
20%
, 60%
, 20%
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Rho
de Is
land
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Spe
cial
ty R
egul
atio
nN
A
Sou
th C
arol
ina
Gro
ss r
ecei
pts
or
sale
sN
ATa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
sal
es d
oubl
e-w
eigh
ted
Gro
ss r
ecei
pts
or
sale
sN
A
Spe
cial
ized
Ind
ustr
y Fo
rmul
as (
Par
t 3)
(con
tinue
d)
Lege
nd:
NA
Not
app
licab
leN
RN
ot r
epor
ted
Ser
vice
Bus
ines
sW
eigh
ted
Equa
lly?
Ret
aile
rsW
eigh
ted
Equa
lly?
Bro
adca
stin
gW
eigh
ted
Equa
lly?
I-534
Sou
th D
akot
aS
outh
Dak
ota
does
not
impo
se a
cor
pora
te in
com
e ta
x. . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tenn
esse
eTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Texa
sG
ross
rec
eipt
sN
AG
ross
rec
eipt
sN
AG
ross
rec
eipt
sN
A
Uta
hTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Verm
ont
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
Yes
Virg
inia
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Was
hing
ton
Was
hing
ton
does
not
impo
se a
cor
pora
te in
com
e ta
x.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wes
t Virg
inia
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Wis
cons
inTa
ngib
le p
rope
rty;
gr
oss
rece
ipts
or
sale
s; p
ayro
ll; R
ule
Tax
2.3
9
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll;
Rul
e Ta
x 2.3
9
No,
sal
es d
oubl
e-w
eigh
ted
Tang
ible
pro
pert
y;
gros
s re
ceip
ts o
r sa
les;
pay
roll
No,
sal
es d
oubl
e-w
eigh
ted
Wyo
min
gW
yom
ing
does
not
impo
se a
cor
pora
te in
com
e ta
x . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .