Section Rev 304.09 - Adjustments Required to Apportionment Factors For Television and Radio Broadcasting Industries(a) For purposes of this section, the following definitions shall apply: (1) "Broadcast" means the transmission of radio programming by an electronic signal conducted by: h. Other conduits of communications;(2) "Film" means performances or productions telecast, live or otherwise, including, but not limited to:e. Other literary, commercial, educational, or artistic works, in the format of a motion picture, a videotape, video disc, or other medium;(3) "Outer-jurisdictional property" means tangible personal property, such as orbiting satellites, undersea transmission cables, which are not physically located in any particular state, that are:a. Owned or rented by the business organization; andb. Used in the business of (4) "Placed into service" means when the film is first telecast to the primary audience for which the film was created;(5) "Radio" means performances or productions broadcast, live or otherwise, on radio, including, but not limited to:e. Other literary, commercial, educational, or artistic works, in the format of an audiotape, disc, or other medium;(6) "Rent" means the payments or consideration such as, but not limited to, license fees provided for the broadcast or other use of television or radio programming;(7) "Subscriber" means the individual location of the residence or other outlet which is the ultimate recipient of the transmission;(8) "Tangible personal property" means property other than: c. Radio programming; and(9) "Telecast" means the transmission of television programming by an electronic signal conducted by: h. Other conduits of communications.(b) Business organizations shall apportion their income to New Hampshire using the apportionment provisions contained in RSA 77-A:3, Rev 304.02, Rev 304.03, Rev 304.04, and Rev 304.041, subject to the adjustments in (f), (g), (h), and (i) below.(c) Each episode of a series of films produced for television shall constitute a separate film notwithstanding that the series relates to the same principal subject and is produced during one or more television seasons.(d) Each episode of a series of radio programming produced for radio broadcast shall constitute separate radio programming notwithstanding that the series relates to the same principal subject and is produced during one or more taxable periods.(e) A film shall not be placed in service merely because it is: (1) Completed and therefore in a condition or state of readiness and availability for telecast;(2) Telecast to prospective sponsors or purchasers; or(3) Shown in preview before a select audience.(f) The property factor for television and radio broadcasters shall be: (1) The sum of New Hampshire programming property and New Hampshire non-programming property, divided by the sum of total programming property and total non-programming property; and(2) The components calculated in accordance with the provisions of Rev 304.02, and in the following manner: a. Total non-programming property shall include all real and tangible personal property other than outer-jurisdictional and film or radio programming property owned, rented and employed by the business organization;b. New Hampshire non-programming property shall include all real and tangible personal property other than outer-jurisdictional and film or radio programming property owned, rented and employed by the business organization in New Hampshire;c. Total programming property shall be the average cost, determined as provided in Rev 304.02(j), of all outer-jurisdictional and film or radio programming property owned, rented, and used by the business organization;d. New Hampshire programming property shall be the average costs, determined as provided in Rev 304.02(j), of all outer-jurisdictional and film or radio programming property owned, rented and used by the business organization in New Hampshire;e. New Hampshire programming property shall be the sum of: 1. The average cost of outer-jurisdictional property everywhere: i. Multiplied by the amount of use, in hours and minutes or other comparable form of measurement, of outer-jurisdictional property during the taxable period to transmit from New Hampshire and to receive in New Hampshire any data, voice, image, or other information; andii. Divided by the total amount of time or other comparable measurement that outer-jurisdictional property was used for transmissions everywhere;2. The original cost of audio or video cassettes, discs or similar media containing film or radio programming and intended for sale or rental by the business organization for home viewing or listening within New Hampshire; and3. To the extent the business organization licenses or otherwise permits others to manufacture or distribute audio or video cassettes, disc or other media containing film or radio programming for home viewing or listening, the license, royalty, or other fees reviewed by the business organization capitalized at a rate of 8 times the gross receipts derived there from during the taxable period; andf. The property factor shall be expressed by formula as follows: | | | | |
| Average NH Outer-Jurisdictional & Programming Property | + | Average NH Non-Outer Jurisdictional & Non-Programming Property | | Total Average NH Property |
| -------------------------------------------------------------------------------- | = | --------------- |
| Average Outer-Jurisdictional & Programming Property Everywhere | + | Average Non- Outer Jurisdictional & Non-Programming Property Everywhere | | Total Average Everywhere Property |
(g) The payroll factor shall be calculated in accordance with Rev 304.03.(h) The sales factor shall be the sum of New Hampshire programming sales and New Hampshire non-programming sales, divided by the sum of programming sales everywhere and non-programming sales everywhere.(i) The sales factor components shall be calculated in the following manner: (1) Non-programming sales, both everywhere and in New Hampshire, shall be calculated using the provisions of Rev 304.04 and Rev 304.041;(2) Programming sales everywhere shall include all receipts from advertising and the sale, rental or other use of the business organization's film or radio programming or customer lists; and(3) New Hampshire programming sales shall equal programming sales everywhere: a. Multiplied by the business organization's in-state audience; andb. Divided by the business organization's total audience everywhere;(4) The method used to determine the audience shall be used consistently to determine both in-state audience and total audience, and used consistently from year to year; and(5) The sales factor shall be expressed by formula as follows: | NH Programming Sales | + | NH Non-Programming Sales | | Total NH Sales |
| ----------------------------------------------------------------------------------------- | = | ---------------- |
| Programming Sales Everywhere | + | Non-Programming Sales Everywhere | | Total Everywhere Sales |
N.H. Code Admin. R. Rev 304.09
#6129, eff 11-23-98; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06
Amended byVolume XXXV Number 06, Filed February 12, 2015 , Proposed by #10758, Effective 1/16/2015, Expires1/16/2025.Amended by Volume XXXIX Number 46, November 14, 2019, Proposed by #12906, Effective 10/23/2019, Expires 10/23/2029.Amended by Volume XLI Number 14, Filed April 8, 2021, Proposed by #13177, Effective 3/6/2021, Expires 3/6/2021