Section Rev 2404.06 - Dividends Apportionment Factor For taxable periods ending before December 31, 2021:
(a) Revenue-producing activity shall include: (1) Any transaction, procedure, or operation in which a business enterprise directly engaged in by a business enterprise resulting in a separately identifiable item of income; or(2) The performance of any activity creating an obligation of a particular customer to pay specific consideration to the business enterprise.(b) The denominator of the sales portion of the dividends apportionment factor shall include the following: (1) Sales less returns and allowances;(2) Dividends which are not eligible for the dividend deduction under RSA 77-E:3, II and III;(7) Net gains or losses; and(8) Other income, unless the other income is properly includible as a reduction of an expense or allowance.(c) The numerator of the sales portion for each business enterprise shall include: (1) Sales of tangible personal property regardless of the conditions of sale delivered in New Hampshire, other than to the United States government;(2) Sales of tangible personal property originating in New Hampshire to a purchaser in another state in which the business enterprise is not taxable or subject to tax;(3) Sales of tangible personal property originating in New Hampshire and delivered to the United States government in any state;(4) Interest on receivables where the debtor or the encumbered property is located in New Hampshire;(5) Gross receipts from the lease, rental, or other use of real or personal property located in New Hampshire;(6) Gross receipts from the licensing or other use of intangible property when such property is used within New Hampshire; and(7) Personal services performed in New Hampshire;(8) Capital gains from the sale of business assets located within New Hampshire;(9) Dividend income received by business enterprises domiciled in New Hampshire;(10) Gross receipts for the rendering of personal services when the services are performed in New Hampshire; and (11) Other income which is earned in New Hampshire.(d) Sales price shall include:(2) Carrying charge or time-price differential charges; and(3) Excise taxes passed on to the buyer or included as part of the selling price of the product.(e) The rental, lease, licensing, or other use of tangible or intangible personal property in New Hampshire shall be considered a separate and distinct revenue producing activity within New Hampshire.(f) When a revenue producing activity results from the use of personal property within and without New Hampshire during the taxable period, gross receipts attributable to New Hampshire shall be measured by one of the following ratios: (1) The time the property was used in New Hampshire as compared to the total time of use of the property everywhere during that taxable period when the amount of time is the most appropriate measure under the specific facts and circumstances of the business enterprise's activities; or(2) The distance traveled or covered in New Hampshire as compared to the total distance traveled or covered everywhere during the taxable period when distance is the most appropriate measure under the specific facts and circumstances of the business enterprise's activities.(g) Personal services performed in New Hampshire shall be a separate revenue producing activity performed in New Hampshire unless the business enterprise can demonstrate the activity performed in New Hampshire is completely dependent upon activities performed by the business enterprise in one or more other states.(h) Personal services shall be attributed to New Hampshire if:(1) The activity is completely performed in New Hampshire; or(2) The activity performed in New Hampshire is a dependent component of a service performed both within and without New Hampshire and a greater proportion of the costs directly associated with performing such service are incurred in New Hampshire.(i) In determining the costs directly associated with the performance of the service in (h), above, the business enterprise shall allocate all compensation costs, including benefits, of personnel performing the service based on the amount of time spent performing the service in New Hampshire as compared to the time spent in performing the service outside New Hampshire.(j) Expenses incurred in obtaining or retaining customers or clients, including contract negotiations, shall not be costs directly associated with the performance of the service.N.H. Admin. Code § Rev 2404.06
#7178, eff 12-23-99, EXPIRED: 12-23-07
New. #9065, eff 1-10-08 (from Rev 2404.05 )
Amended by Volume XXXVI Number 06, Filed February 11, 2016, Proposed by #11032, Effective 1/29/2016, Expires 1/29/2026.Amended by Volume XLI Number 14, Filed April 8, 2021, Proposed by #13177, Effective 3/6/2021, Expires 3/6/2021