Section Rev 304.11 - Adjustments Required To Apportionment Factors For Transportation Industries Other Than Airlines, Communication And Energy Companies(a) For purposes of this section, the following definitions shall apply: (1) "Commercial transportation company" means any business organization: a. Other than an airline, or communication or energy company, that is paid to transport packages, materials, equipment, freight, mail, or other products from one point to another for a customer; orb. That transports individuals for a fee, other than the organization's employees, from one point to another;(2) "Mobile payroll" means the total compensation for vehicle drivers and any service personnel such as tour guides, conductors, or other attendants determined in accordance with Rev 304.03(a); (3) "Mobile property" means any vehicles used by a commercial transportation company for transporting: f. Mail or other products; org. Any related equipment that generally moves from location to location within the organization's transportation system; (4) "Non-mobile payroll" means the total compensation determined in accordance with Rev 304.03 for all employees of the business organization, other than vehicle drivers and any service personnel;(5) "Non-mobile property" means: a. Fixed tangible personal property used in the operation of a commercial transportation company; andb. Located at a particular place of business;(6) "Non-transportation income" means all receipts of the business organization other than those classified as transportation income;(7) "Revenue miles" means the distance passengers, packages, materials, equipment, freight, mail, or other products were transported for a fee; and(8) "Transportation income" means: a. The receipts from transporting passengers, packages, materials, equipment, freight, mail, or other products; andb. The sale of products or services associated with such transportation such as food, beverages, liquor, magazines, or insurance for loss or damage.(b) Commercial transportation companies 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 (c), (d), and (e), below.(c) The property factor's components shall be calculated utilizing the following provisions: (1) The property factor shall be the sum of average New Hampshire mobile property and average New Hampshire non-mobile property, divided by the sum of average mobile property everywhere and average non-mobile property everywhere;(2) Average New Hampshire non-mobile property, and average non-mobile property everywhere shall be calculated using the provisions of Rev 304.02;(3) Average mobile property everywhere shall include the average value, as provided in Rev 304.02(j), of all mobile property owned, rented, and used by the business organization;(4) Average New Hampshire mobile property shall equal average mobile property everywhere: a. Multiplied by New Hampshire revenue miles; andb. Divided by total revenue miles; and(5) The property factor shall be expressed by formula as follows: Average Mobile Property Everywhere | X | NH Revenue Miles --------------------------- Total Revenue Miles | = | Average NH Mobile Property |
Average NH Mobile Property | + | Average NH Non-Mobile Property | | Total Average NH Property |
--------------------------------------------------------------------------------- | = | ---------------------------------- |
Average Mobile Property Everywhere | + | Average Non-Mobile Property Everywhere | | Total Average Property Everywhere |
(d) The payroll factor's components shall be calculated utilizing the following provisions: (1) The payroll factor shall be the sum of New Hampshire mobile payroll and New Hampshire non-mobile payroll, divided by the sum of mobile payroll everywhere and non-mobile payroll everywhere;(2) New Hampshire non-mobile payroll, and non-mobile payroll everywhere, shall be calculated using the provisions of Rev 304.03;(3) Mobile payroll everywhere shall include the total compensation of the business organization for vehicle drivers and any service personnel such as tour guides, conductors or other attendants; (4) New Hampshire mobile payroll shall equal mobile payroll everywhere: a. Multiplied by New Hampshire revenue miles;b. Divided by total revenue miles; and (5) The payroll factor shall be expressed by formula as follows: Mobile Payroll Everywhere | X | NH Revenue Miles ---------------------------- Total Revenue Miles | = | NH Mobile Payroll |
NH Mobile Payroll | + | + NH Non-Mobile Payroll | | Total NH Payroll |
--------------------------------------------------------------------------------- | = | ---------------------------------- |
Mobile Payroll Everywhere | + | Non-Mobile Payroll Everywhere | | Total Payroll Everywhere |
(e) The sales factor's components shall be calculated utilizing the following provisions: (1) The sales factor shall be the sum of New Hampshire transportation income and New Hampshire non-transportation income, divided by the sum of transportation income everywhere and non-transportation income everywhere;(2) New Hampshire non-transportation income and non-transportation income everywhere shall be calculated using the provisions of Rev 304.04 and Rev 304.041; (3) Transportation income everywhere shall include the total transportation income of the business organization;(4) New Hampshire transportation income shall equal transportation income everywhere: a. Multiplied by New Hampshire revenue miles; andb. Divided by total revenue miles; and(5) The sales factor shall be expressed by formula as follows: Transportation Income Everywhere | X | NH Revenue Miles ------------------------- Total Revenue Miles | = | NH Transportation Income |
NH Transportation Income | + | NH Non-Transportation Sales | | Total NH Sales |
--------------------------------------------------------------------------------------- | = | ----------------------------- |
Transportation Income Everywhere | + | Non-Transportation Sales Everywhere | | Total Everywhere Sales |
(f) The business organization shall maintain the records necessary to substantiate the revenue miles and the receipts for all passengers, packages, materials, equipment, freight, mail, or other products when the transportation service commences or terminates in New Hampshire.N.H. Code Admin. R. Rev 304.11
#6853, eff 9-23-98 (formerly Rev 304.10 ); 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 XLI Number 14, Filed April 8, 2021, Proposed by #13177, Effective 3/6/2021, Expires 3/6/2021