(Tax Law, section 210-A(3))
Example 1: Corporation W receives $20,000 from its customer to provide transportation by omnibus from a location in New York State to a location outside of New York. Such transportation is not for school bus operations. 25% of the miles traveled by Corporation W's omnibus are in New York, 5 miles in New York State out of a total 20 miles. Corporation W must include $5,000 in New York receipts (25% x $20,000). $20,000 is included in everywhere receipts.
Example 2: Corporation X receives $500 from customer A and $300 from customer B for short-term automobile rentals. Customer A picks up the automobile at Corporation X's New York location and returns it to such location. As both the pickup and return locations are in New York State for customer A, the $500 from customer A is included in New York receipts and everywhere receipts. Customer B picks up the automobile at Corporation X's New York location but returns it to Corporation X's location outside of New York State. As half of the pickup and return locations are in New York State, half of the receipts from customer B, $150, is included in New York receipts and $300 is included in everywhere receipts. Corporation X has a total of $650 of New York receipts, $500 from customer A and $150 from customer B. It has $800 in everywhere receipts, $500 from customer A and $300 from customer B.
Example 1: Network Corp sells a license to broadcast its network to Cable Corp for a set fee. Under the licensing agreement, Cable Corp is allowed to bundle Network Corp's network with other content and sell the bundle to individual subscribers for a monthly fee set by Cable Corp. Even though the content is digitally delivered to Cable Corp by Network Corp, the delivery means is incidental to the sale of a license to distribute, broadcast or sublicense. As such, Network Corp's receipts are apportioned under this section to the location where the license is used, which is presumed to be the location where the network is available for viewing. Network Corp's books and records indicate the location of Cable Corp's viewers. The amount of New York receipts is determined by multiplying such receipts by a fraction, the numerator of which is the number of subscribers in New York State and the denominator of which is the total number of subscribers within and without New York State.
Example 2: Network Corp sells a license to distribute its movie to Streaming Corp for a set fee. Under the licensing agreement, Streaming Corp is allowed to add the movie to its library of movies and other programming offered by the streaming service. Streaming Corp sells monthly subscriptions to view all of its content to individual viewers for a fee set by Streaming Corp. Although the movie is digitally delivered by Network Corp to Streaming Corp, the means of delivery is incidental to the sale of a license to distribute, broadcast or sublicense the movie. As such, Network Corp's receipts are apportioned under this section to the location where the license is used, which is presumed to be the location where the movie is available for viewing. If Network Corp's books and records do not indicate the location of Streaming Corp's viewers, it must use a reasonable method to approximate the subscriber location.
N.Y. Comp. Codes R. & Regs. Tit. 20 § 4-2.3