§ 44-14-14.3 Receipts factor. – (a) General. The receipts factor is a fraction, the numerator of whichis the receipts of the taxpayer in this state during the taxable year and thedenominator of which is the receipts of the taxpayer within and outside of thisstate during the taxable year. The method of calculating receipts for purposesof the denominator is the same as the method used in determining receipts forpurposes of the numerator.
(b) Receipts from the lease of real property. Thenumerator of the receipts factor includes receipts from the lease or rental orreal property owned by the taxpayer if the property is located within thisstate.
(1) Except as described in subdivision (2) of thissubsection, the numerator of the receipts factor includes receipts from thelease or rental of tangible personal property owned by the taxpayer if theproperty is located within the state when it is first placed in service by thelessee.
(2) Receipts from the lease or rental of transportationproperty owned by the taxpayer are included in the numerator of the receiptsfactor to the extent that the property is used in this state. The extent anaircraft will be deemed to be used in this state and the amount of receiptsthat is to be included in the numerator of this state's receipts factor isdetermined by multiplying all the receipts from the lease or rental of theaircraft by a fraction, the numerator of which is the number of landings of theaircraft in this state and the denominator of which is the total number oflandings of the aircraft. If the extent of the use of any transportationproperty within this state cannot by determined, then the property will bedeemed to be used wholly in the state in which the property has its principalbase of operations. A motor vehicle will be deemed to be used wholly in thestate in which it is registered.
(1) The numerator of the receipts factor includes interestand fees or penalties in the nature of interest from loans secured by realproperty if the property is located within this state. If the property islocated both within this state and one or more other states, the receiptsdescribed in this section are included in the numerator of the receipts factorif more than fifty percent (50%) of the fair market value of the real propertyis located within this state. If more than fifty percent (50%) of the fairmarket value of the real property is not located within any one state, then thereceipts described in this section shall be included in the numerator or thereceipts factor if the borrower is located in this state.
(2) The determination of whether the real property securing aloan is located within this state shall be made as of the time the originalagreement was made and any and all subsequent substitutions of collateral shallbe disregarded.
(e) Interest from loans not secured by real property.The numerator of the receipts factor includes interest and fees or penalties inthe nature of interest from loans not secured by real property if the borroweris located in this state.
(1) The numerator of the receipts factor includes net gainsfrom the sale of loans. Net gains from the sale of loans includes incomerecorded under the coupon stripping rules of § 1286 of the InternalRevenue Code, 26 U.S.C. § 1286.
(2) The amount of net gains (but not less than zero) from thesale of loans secured by real property included in the numerator is determinedby multiplying the net gains by a fraction the numerator of which is the amountincluded in the numerator of the receipts factor pursuant to subsection (d) ofthis section and the denominator of which is the total amount of interest andfees or penalties in the nature of interest from loans secured by real property.
(3) The amount of net gains (but not less than zero) from thesale of loans not secured by real property included in the numerator isdetermined by multiplying the net gains by a fraction the numerator of which isthe amount included in the numerator of the receipts factor pursuant tosubsection (e) of this section and the denominator of which is the total amountof interest and fees or penalties in the nature of interest from loans notsecured by real property.
(g) Receipts from credit card receivables. Thenumerator of the receipts factor includes interest and fees or penalties in thenature of interest from credit card receivables and receipts from fees chargedto cardholders, such as annual fees, if the billing address of the cardholderis in this state.
(h) Net gains from the sale of credit cardreceivables. The numerator of the receipts factor includes net gains (butnot less than zero) from the sale of credit card receivables multiplied by afraction, the numerator of which is the amount included in the numerator of thereceipts factor pursuant to subsection (g) of this section and the denominatorof which is the taxpayer's total amount of interest and fees or penalties inthe nature of interest from credit card receivables and fees charged tocardholders.
(i) Credit card issuer's reimbursement fees. Thenumerator of the receipts factor includes all credit card issuer'sreimbursement fees multiplied by a fraction, the numerator of which is theamount included in the numerator of the receipts factor pursuant to subsection(g) of this section and the denominator of which is the taxpayer's total amountof interest and fees or penalties in the nature of interest from credit cardreceivables and fees charged to cardholders.
(j) Receipts from merchant discount. The numerator ofthe receipts factor includes receipts from merchant discount if the commercialdomicile of the merchant is in this state. The receipts shall be computed netof any cardholder charge backs, but shall not be reduced by any interchangetransaction fees or by any issuer's reimbursement fees paid to another forcharges made by its cardholders.
(1) The numerator of the receipts factor includes loanservicing fees derived from loans secured by real property multiplied by afraction, the numerator of which is the amount included in the numerator of thereceipts factor pursuant to subsection (d) of this section and the denominatorof which is the total amount of interest and fees or penalties in the nature ofinterest from loans secured by real property.
(ii) The numerator of the receipts factor includes loanservicing fees derived from loans not secured by real property multiplied by afraction, the numerator of which is the amount included in the numerator of thereceipts factor pursuant to subsection (e) of this section and the denominatorof which is the total amount of interest and fees or penalties in the nature ofinterest from loans not secured by real property.
(2) In circumstances in which the taxpayer receives loanservicing fees for servicing either the secured or the unsecured loans ofanother, the numerator of the receipts factor shall include the fees if theborrower is located in this state.
(l) Receipts from services. The numerator of thereceipts factor includes receipts from services not otherwise apportioned underthis section if the service is performed in this state. If the service isperformed both within and outside of this state, the numerator of the receiptsfactor includes receipts from services not otherwise apportioned under§§ 44-14-14.1 – 44-14-14.5 if a greater proportion of theincome-producing activity is performed in this state based on cost ofperformance.
(1) Interest, dividends, net gains (but not less than zero)and other income from investment assets and activities and from trading assetsand activities shall be included in the receipts factor. Investment assets andactivities and trading assets and activities include but are not limited to:investment securities; trading account assets; federal funds; securitiespurchased and sold under agreements to resell or repurchase; options; futurecontracts; forward contracts; national principal contracts such as swaps;equities; and foreign currency transactions. With respect to the investment andtrading assets and activities described in paragraphs (ii) and (iii) of thissubdivision, the receipts factor shall include the amounts described in thoseparts.
(ii) The receipts factor shall include the amount by whichinterest from federal funds sold and securities purchased under resaleagreements exceeds interest expense on federal funds purchased and securitiessold under repurchase agreements.
(iii) The receipts factor shall include the amount by whichinterest, dividends, gains and other income from trading assets and activitiesincluding, but not limited to, assets and activities in the matched book, inthe arbitrage book, and foreign currency transactions, exceed amounts paid inlieu of interest, amounts paid in lieu of dividends, and losses from thoseassets and activities.
(2) The numerator of the receipts factor includes interest,dividends, net gains (but not less than zero) and other income from investmentassets and activities and from trading assets and activities described insubdivision (1) of this subsection that are attributable to this state.
(ii) The amount of interest, dividends, net gains (but notless than zero) and other income from investment assets and activities in theinvestment account to be attributed to this state and included in the numeratoris determined by multiplying all the income from those assets and activities bya fraction, the numerator of which is the average value of the assets which areproperly assigned to a regular place of business of the taxpayer within thisstate and the denominator of which is the average value of all the assets.
(iii) The amount of interest from federal funds sold andpurchased and from securities purchased under resale agreements and securitiessold under repurchase agreements attributable to this state and included in thenumerator is determined by multiplying the amount described in paragraph(1)(ii) of this subsection from those funds and the securities by a fraction,the numerator of which is the average value of federal funds sold andsecurities purchased under agreements to resell which are properly assigned toa regular place of business of the taxpayer within this state and thedenominator of which is the average value of all the funds and the securities.
(iv) The amount of interest, dividends, gains and otherincome from trading assets and activities including, but not limited to, assetsand activities in the matched book, in the arbitrage book and foreign currencytransactions, but excluding amounts described in paragraphs (ii) and (iii) ofthis subdivision attributable to this state and included in the numerator isdetermined by multiplying the amount described in paragraph (1)(iii) of thissubsection by a fraction, the numerator of which is the average value of thetrading assets which are properly assigned to a regular place of business ofthe taxpayer within this state and the denominator of which is the averagevalue of all the assets.
(v) For purposes of this subdivision, average value shall bedetermined using the rules for determining the average value of tangiblepersonal property set forth in § 44-14-14.4(c) and (d).
(3) In lieu of using the method set forth in subdivision (2)of this subsection, the taxpayer may elect, or the tax administrator mayrequire in order to fairly represent the business activity of the taxpayer inthis state, the use of the method set forth in this subdivision.
(ii) The amount of interest, dividends, net gains (but notless than zero) and other income from investment assets and activities in theinvestment account to be attributed to this state and included in the numeratoris determined by multiplying all the income from the assets and activities by afraction, the numerator of which is the gross income from the assets andactivities which are properly assigned to a regular place of business of thetaxpayer within this state and the denominator of which is the gross incomefrom all the assets and activities.
(iii) The amount of interest from federal funds sold andpurchased and from securities purchased under resale agreements and securitiessold under repurchase agreements attributable to this state and included in thenumerator is determined by multiplying the amount described in subdivision (1)of this subsection from the funds and the securities by a fraction, thenumerator of which is the gross income from the funds and the securities whichare properly assigned to a regular place of business of the taxpayer withinthis state and the denominator of which is the gross income from all the fundsand the securities.
(iv) The amount of interest, dividends, gains and otherincome from trading assets and activities including, but not limited to, assetsand activities in the matched book, in the arbitrage book and foreign currencytransactions but excluding amounts described in paragraphs (ii) and (iii) ofthis subdivision, attributable to this state and included in the numerator isdetermined by multiplying the amount described in paragraph (1)(iii) of thissubsection by a fraction, the numerator of which is the gross income from thetrading assets and activities which are properly assigned to a regular place ofbusiness of the taxpayer within this state and the denominator of which is thegross income from all the assets and activities.
(4) If the taxpayer elects or is required by the taxadministrator to use the method set forth in subdivision (3) of thissubsection, it shall use this method on all subsequent returns unless thetaxpayer receives prior permission from the tax administrator to use, or thetax administrator requires a different method.
(5) The taxpayer shall have the burden of proving that aninvestment asset or activity or trading asset or activity was properly assignedto a regular place of business outside of this state by demonstrating that theday-to-day decisions regarding the asset or activity occurred at a regularplace of business outside of this state. Where the day-to-day decisionsregarding an investment asset or activity or trading asset or activity occur atmore than one regular place of business and one regular place of business is inthis state and one regular place of business is outside of this state, theasset or activity shall be considered to be located at the regular place ofbusiness of the taxpayer where the investment or trading policies or guidelineswith respect to the asset or activity are established. Unless the taxpayerdemonstrates to the contrary, the policies and guidelines shall be presumed tobe established at the commercial domicile of the taxpayer.
(n) All other receipts. The numerator of the receiptsfactor includes all other receipts pursuant to the provisions of §44-14-14.
(o) Attribution of certain receipts to commercialdomicile. All receipts which would be assigned under this section to astate in which the taxpayer is not taxable shall be included in the numeratorof the receipts factor, if the taxpayer's commercial domicile is in this state.
§ 44-14-14.3 Receipts factor. – (a) General. The receipts factor is a fraction, the numerator of whichis the receipts of the taxpayer in this state during the taxable year and thedenominator of which is the receipts of the taxpayer within and outside of thisstate during the taxable year. The method of calculating receipts for purposesof the denominator is the same as the method used in determining receipts forpurposes of the numerator.
(b) Receipts from the lease of real property. Thenumerator of the receipts factor includes receipts from the lease or rental orreal property owned by the taxpayer if the property is located within thisstate.
(1) Except as described in subdivision (2) of thissubsection, the numerator of the receipts factor includes receipts from thelease or rental of tangible personal property owned by the taxpayer if theproperty is located within the state when it is first placed in service by thelessee.
(2) Receipts from the lease or rental of transportationproperty owned by the taxpayer are included in the numerator of the receiptsfactor to the extent that the property is used in this state. The extent anaircraft will be deemed to be used in this state and the amount of receiptsthat is to be included in the numerator of this state's receipts factor isdetermined by multiplying all the receipts from the lease or rental of theaircraft by a fraction, the numerator of which is the number of landings of theaircraft in this state and the denominator of which is the total number oflandings of the aircraft. If the extent of the use of any transportationproperty within this state cannot by determined, then the property will bedeemed to be used wholly in the state in which the property has its principalbase of operations. A motor vehicle will be deemed to be used wholly in thestate in which it is registered.
(1) The numerator of the receipts factor includes interestand fees or penalties in the nature of interest from loans secured by realproperty if the property is located within this state. If the property islocated both within this state and one or more other states, the receiptsdescribed in this section are included in the numerator of the receipts factorif more than fifty percent (50%) of the fair market value of the real propertyis located within this state. If more than fifty percent (50%) of the fairmarket value of the real property is not located within any one state, then thereceipts described in this section shall be included in the numerator or thereceipts factor if the borrower is located in this state.
(2) The determination of whether the real property securing aloan is located within this state shall be made as of the time the originalagreement was made and any and all subsequent substitutions of collateral shallbe disregarded.
(e) Interest from loans not secured by real property.The numerator of the receipts factor includes interest and fees or penalties inthe nature of interest from loans not secured by real property if the borroweris located in this state.
(1) The numerator of the receipts factor includes net gainsfrom the sale of loans. Net gains from the sale of loans includes incomerecorded under the coupon stripping rules of § 1286 of the InternalRevenue Code, 26 U.S.C. § 1286.
(2) The amount of net gains (but not less than zero) from thesale of loans secured by real property included in the numerator is determinedby multiplying the net gains by a fraction the numerator of which is the amountincluded in the numerator of the receipts factor pursuant to subsection (d) ofthis section and the denominator of which is the total amount of interest andfees or penalties in the nature of interest from loans secured by real property.
(3) The amount of net gains (but not less than zero) from thesale of loans not secured by real property included in the numerator isdetermined by multiplying the net gains by a fraction the numerator of which isthe amount included in the numerator of the receipts factor pursuant tosubsection (e) of this section and the denominator of which is the total amountof interest and fees or penalties in the nature of interest from loans notsecured by real property.
(g) Receipts from credit card receivables. Thenumerator of the receipts factor includes interest and fees or penalties in thenature of interest from credit card receivables and receipts from fees chargedto cardholders, such as annual fees, if the billing address of the cardholderis in this state.
(h) Net gains from the sale of credit cardreceivables. The numerator of the receipts factor includes net gains (butnot less than zero) from the sale of credit card receivables multiplied by afraction, the numerator of which is the amount included in the numerator of thereceipts factor pursuant to subsection (g) of this section and the denominatorof which is the taxpayer's total amount of interest and fees or penalties inthe nature of interest from credit card receivables and fees charged tocardholders.
(i) Credit card issuer's reimbursement fees. Thenumerator of the receipts factor includes all credit card issuer'sreimbursement fees multiplied by a fraction, the numerator of which is theamount included in the numerator of the receipts factor pursuant to subsection(g) of this section and the denominator of which is the taxpayer's total amountof interest and fees or penalties in the nature of interest from credit cardreceivables and fees charged to cardholders.
(j) Receipts from merchant discount. The numerator ofthe receipts factor includes receipts from merchant discount if the commercialdomicile of the merchant is in this state. The receipts shall be computed netof any cardholder charge backs, but shall not be reduced by any interchangetransaction fees or by any issuer's reimbursement fees paid to another forcharges made by its cardholders.
(1) The numerator of the receipts factor includes loanservicing fees derived from loans secured by real property multiplied by afraction, the numerator of which is the amount included in the numerator of thereceipts factor pursuant to subsection (d) of this section and the denominatorof which is the total amount of interest and fees or penalties in the nature ofinterest from loans secured by real property.
(ii) The numerator of the receipts factor includes loanservicing fees derived from loans not secured by real property multiplied by afraction, the numerator of which is the amount included in the numerator of thereceipts factor pursuant to subsection (e) of this section and the denominatorof which is the total amount of interest and fees or penalties in the nature ofinterest from loans not secured by real property.
(2) In circumstances in which the taxpayer receives loanservicing fees for servicing either the secured or the unsecured loans ofanother, the numerator of the receipts factor shall include the fees if theborrower is located in this state.
(l) Receipts from services. The numerator of thereceipts factor includes receipts from services not otherwise apportioned underthis section if the service is performed in this state. If the service isperformed both within and outside of this state, the numerator of the receiptsfactor includes receipts from services not otherwise apportioned under§§ 44-14-14.1 – 44-14-14.5 if a greater proportion of theincome-producing activity is performed in this state based on cost ofperformance.
(1) Interest, dividends, net gains (but not less than zero)and other income from investment assets and activities and from trading assetsand activities shall be included in the receipts factor. Investment assets andactivities and trading assets and activities include but are not limited to:investment securities; trading account assets; federal funds; securitiespurchased and sold under agreements to resell or repurchase; options; futurecontracts; forward contracts; national principal contracts such as swaps;equities; and foreign currency transactions. With respect to the investment andtrading assets and activities described in paragraphs (ii) and (iii) of thissubdivision, the receipts factor shall include the amounts described in thoseparts.
(ii) The receipts factor shall include the amount by whichinterest from federal funds sold and securities purchased under resaleagreements exceeds interest expense on federal funds purchased and securitiessold under repurchase agreements.
(iii) The receipts factor shall include the amount by whichinterest, dividends, gains and other income from trading assets and activitiesincluding, but not limited to, assets and activities in the matched book, inthe arbitrage book, and foreign currency transactions, exceed amounts paid inlieu of interest, amounts paid in lieu of dividends, and losses from thoseassets and activities.
(2) The numerator of the receipts factor includes interest,dividends, net gains (but not less than zero) and other income from investmentassets and activities and from trading assets and activities described insubdivision (1) of this subsection that are attributable to this state.
(ii) The amount of interest, dividends, net gains (but notless than zero) and other income from investment assets and activities in theinvestment account to be attributed to this state and included in the numeratoris determined by multiplying all the income from those assets and activities bya fraction, the numerator of which is the average value of the assets which areproperly assigned to a regular place of business of the taxpayer within thisstate and the denominator of which is the average value of all the assets.
(iii) The amount of interest from federal funds sold andpurchased and from securities purchased under resale agreements and securitiessold under repurchase agreements attributable to this state and included in thenumerator is determined by multiplying the amount described in paragraph(1)(ii) of this subsection from those funds and the securities by a fraction,the numerator of which is the average value of federal funds sold andsecurities purchased under agreements to resell which are properly assigned toa regular place of business of the taxpayer within this state and thedenominator of which is the average value of all the funds and the securities.
(iv) The amount of interest, dividends, gains and otherincome from trading assets and activities including, but not limited to, assetsand activities in the matched book, in the arbitrage book and foreign currencytransactions, but excluding amounts described in paragraphs (ii) and (iii) ofthis subdivision attributable to this state and included in the numerator isdetermined by multiplying the amount described in paragraph (1)(iii) of thissubsection by a fraction, the numerator of which is the average value of thetrading assets which are properly assigned to a regular place of business ofthe taxpayer within this state and the denominator of which is the averagevalue of all the assets.
(v) For purposes of this subdivision, average value shall bedetermined using the rules for determining the average value of tangiblepersonal property set forth in § 44-14-14.4(c) and (d).
(3) In lieu of using the method set forth in subdivision (2)of this subsection, the taxpayer may elect, or the tax administrator mayrequire in order to fairly represent the business activity of the taxpayer inthis state, the use of the method set forth in this subdivision.
(ii) The amount of interest, dividends, net gains (but notless than zero) and other income from investment assets and activities in theinvestment account to be attributed to this state and included in the numeratoris determined by multiplying all the income from the assets and activities by afraction, the numerator of which is the gross income from the assets andactivities which are properly assigned to a regular place of business of thetaxpayer within this state and the denominator of which is the gross incomefrom all the assets and activities.
(iii) The amount of interest from federal funds sold andpurchased and from securities purchased under resale agreements and securitiessold under repurchase agreements attributable to this state and included in thenumerator is determined by multiplying the amount described in subdivision (1)of this subsection from the funds and the securities by a fraction, thenumerator of which is the gross income from the funds and the securities whichare properly assigned to a regular place of business of the taxpayer withinthis state and the denominator of which is the gross income from all the fundsand the securities.
(iv) The amount of interest, dividends, gains and otherincome from trading assets and activities including, but not limited to, assetsand activities in the matched book, in the arbitrage book and foreign currencytransactions but excluding amounts described in paragraphs (ii) and (iii) ofthis subdivision, attributable to this state and included in the numerator isdetermined by multiplying the amount described in paragraph (1)(iii) of thissubsection by a fraction, the numerator of which is the gross income from thetrading assets and activities which are properly assigned to a regular place ofbusiness of the taxpayer within this state and the denominator of which is thegross income from all the assets and activities.
(4) If the taxpayer elects or is required by the taxadministrator to use the method set forth in subdivision (3) of thissubsection, it shall use this method on all subsequent returns unless thetaxpayer receives prior permission from the tax administrator to use, or thetax administrator requires a different method.
(5) The taxpayer shall have the burden of proving that aninvestment asset or activity or trading asset or activity was properly assignedto a regular place of business outside of this state by demonstrating that theday-to-day decisions regarding the asset or activity occurred at a regularplace of business outside of this state. Where the day-to-day decisionsregarding an investment asset or activity or trading asset or activity occur atmore than one regular place of business and one regular place of business is inthis state and one regular place of business is outside of this state, theasset or activity shall be considered to be located at the regular place ofbusiness of the taxpayer where the investment or trading policies or guidelineswith respect to the asset or activity are established. Unless the taxpayerdemonstrates to the contrary, the policies and guidelines shall be presumed tobe established at the commercial domicile of the taxpayer.
(n) All other receipts. The numerator of the receiptsfactor includes all other receipts pursuant to the provisions of §44-14-14.
(o) Attribution of certain receipts to commercialdomicile. All receipts which would be assigned under this section to astate in which the taxpayer is not taxable shall be included in the numeratorof the receipts factor, if the taxpayer's commercial domicile is in this state.
§ 44-14-14.3 Receipts factor. – (a) General. The receipts factor is a fraction, the numerator of whichis the receipts of the taxpayer in this state during the taxable year and thedenominator of which is the receipts of the taxpayer within and outside of thisstate during the taxable year. The method of calculating receipts for purposesof the denominator is the same as the method used in determining receipts forpurposes of the numerator.
(b) Receipts from the lease of real property. Thenumerator of the receipts factor includes receipts from the lease or rental orreal property owned by the taxpayer if the property is located within thisstate.
(1) Except as described in subdivision (2) of thissubsection, the numerator of the receipts factor includes receipts from thelease or rental of tangible personal property owned by the taxpayer if theproperty is located within the state when it is first placed in service by thelessee.
(2) Receipts from the lease or rental of transportationproperty owned by the taxpayer are included in the numerator of the receiptsfactor to the extent that the property is used in this state. The extent anaircraft will be deemed to be used in this state and the amount of receiptsthat is to be included in the numerator of this state's receipts factor isdetermined by multiplying all the receipts from the lease or rental of theaircraft by a fraction, the numerator of which is the number of landings of theaircraft in this state and the denominator of which is the total number oflandings of the aircraft. If the extent of the use of any transportationproperty within this state cannot by determined, then the property will bedeemed to be used wholly in the state in which the property has its principalbase of operations. A motor vehicle will be deemed to be used wholly in thestate in which it is registered.
(1) The numerator of the receipts factor includes interestand fees or penalties in the nature of interest from loans secured by realproperty if the property is located within this state. If the property islocated both within this state and one or more other states, the receiptsdescribed in this section are included in the numerator of the receipts factorif more than fifty percent (50%) of the fair market value of the real propertyis located within this state. If more than fifty percent (50%) of the fairmarket value of the real property is not located within any one state, then thereceipts described in this section shall be included in the numerator or thereceipts factor if the borrower is located in this state.
(2) The determination of whether the real property securing aloan is located within this state shall be made as of the time the originalagreement was made and any and all subsequent substitutions of collateral shallbe disregarded.
(e) Interest from loans not secured by real property.The numerator of the receipts factor includes interest and fees or penalties inthe nature of interest from loans not secured by real property if the borroweris located in this state.
(1) The numerator of the receipts factor includes net gainsfrom the sale of loans. Net gains from the sale of loans includes incomerecorded under the coupon stripping rules of § 1286 of the InternalRevenue Code, 26 U.S.C. § 1286.
(2) The amount of net gains (but not less than zero) from thesale of loans secured by real property included in the numerator is determinedby multiplying the net gains by a fraction the numerator of which is the amountincluded in the numerator of the receipts factor pursuant to subsection (d) ofthis section and the denominator of which is the total amount of interest andfees or penalties in the nature of interest from loans secured by real property.
(3) The amount of net gains (but not less than zero) from thesale of loans not secured by real property included in the numerator isdetermined by multiplying the net gains by a fraction the numerator of which isthe amount included in the numerator of the receipts factor pursuant tosubsection (e) of this section and the denominator of which is the total amountof interest and fees or penalties in the nature of interest from loans notsecured by real property.
(g) Receipts from credit card receivables. Thenumerator of the receipts factor includes interest and fees or penalties in thenature of interest from credit card receivables and receipts from fees chargedto cardholders, such as annual fees, if the billing address of the cardholderis in this state.
(h) Net gains from the sale of credit cardreceivables. The numerator of the receipts factor includes net gains (butnot less than zero) from the sale of credit card receivables multiplied by afraction, the numerator of which is the amount included in the numerator of thereceipts factor pursuant to subsection (g) of this section and the denominatorof which is the taxpayer's total amount of interest and fees or penalties inthe nature of interest from credit card receivables and fees charged tocardholders.
(i) Credit card issuer's reimbursement fees. Thenumerator of the receipts factor includes all credit card issuer'sreimbursement fees multiplied by a fraction, the numerator of which is theamount included in the numerator of the receipts factor pursuant to subsection(g) of this section and the denominator of which is the taxpayer's total amountof interest and fees or penalties in the nature of interest from credit cardreceivables and fees charged to cardholders.
(j) Receipts from merchant discount. The numerator ofthe receipts factor includes receipts from merchant discount if the commercialdomicile of the merchant is in this state. The receipts shall be computed netof any cardholder charge backs, but shall not be reduced by any interchangetransaction fees or by any issuer's reimbursement fees paid to another forcharges made by its cardholders.
(1) The numerator of the receipts factor includes loanservicing fees derived from loans secured by real property multiplied by afraction, the numerator of which is the amount included in the numerator of thereceipts factor pursuant to subsection (d) of this section and the denominatorof which is the total amount of interest and fees or penalties in the nature ofinterest from loans secured by real property.
(ii) The numerator of the receipts factor includes loanservicing fees derived from loans not secured by real property multiplied by afraction, the numerator of which is the amount included in the numerator of thereceipts factor pursuant to subsection (e) of this section and the denominatorof which is the total amount of interest and fees or penalties in the nature ofinterest from loans not secured by real property.
(2) In circumstances in which the taxpayer receives loanservicing fees for servicing either the secured or the unsecured loans ofanother, the numerator of the receipts factor shall include the fees if theborrower is located in this state.
(l) Receipts from services. The numerator of thereceipts factor includes receipts from services not otherwise apportioned underthis section if the service is performed in this state. If the service isperformed both within and outside of this state, the numerator of the receiptsfactor includes receipts from services not otherwise apportioned under§§ 44-14-14.1 – 44-14-14.5 if a greater proportion of theincome-producing activity is performed in this state based on cost ofperformance.
(1) Interest, dividends, net gains (but not less than zero)and other income from investment assets and activities and from trading assetsand activities shall be included in the receipts factor. Investment assets andactivities and trading assets and activities include but are not limited to:investment securities; trading account assets; federal funds; securitiespurchased and sold under agreements to resell or repurchase; options; futurecontracts; forward contracts; national principal contracts such as swaps;equities; and foreign currency transactions. With respect to the investment andtrading assets and activities described in paragraphs (ii) and (iii) of thissubdivision, the receipts factor shall include the amounts described in thoseparts.
(ii) The receipts factor shall include the amount by whichinterest from federal funds sold and securities purchased under resaleagreements exceeds interest expense on federal funds purchased and securitiessold under repurchase agreements.
(iii) The receipts factor shall include the amount by whichinterest, dividends, gains and other income from trading assets and activitiesincluding, but not limited to, assets and activities in the matched book, inthe arbitrage book, and foreign currency transactions, exceed amounts paid inlieu of interest, amounts paid in lieu of dividends, and losses from thoseassets and activities.
(2) The numerator of the receipts factor includes interest,dividends, net gains (but not less than zero) and other income from investmentassets and activities and from trading assets and activities described insubdivision (1) of this subsection that are attributable to this state.
(ii) The amount of interest, dividends, net gains (but notless than zero) and other income from investment assets and activities in theinvestment account to be attributed to this state and included in the numeratoris determined by multiplying all the income from those assets and activities bya fraction, the numerator of which is the average value of the assets which areproperly assigned to a regular place of business of the taxpayer within thisstate and the denominator of which is the average value of all the assets.
(iii) The amount of interest from federal funds sold andpurchased and from securities purchased under resale agreements and securitiessold under repurchase agreements attributable to this state and included in thenumerator is determined by multiplying the amount described in paragraph(1)(ii) of this subsection from those funds and the securities by a fraction,the numerator of which is the average value of federal funds sold andsecurities purchased under agreements to resell which are properly assigned toa regular place of business of the taxpayer within this state and thedenominator of which is the average value of all the funds and the securities.
(iv) The amount of interest, dividends, gains and otherincome from trading assets and activities including, but not limited to, assetsand activities in the matched book, in the arbitrage book and foreign currencytransactions, but excluding amounts described in paragraphs (ii) and (iii) ofthis subdivision attributable to this state and included in the numerator isdetermined by multiplying the amount described in paragraph (1)(iii) of thissubsection by a fraction, the numerator of which is the average value of thetrading assets which are properly assigned to a regular place of business ofthe taxpayer within this state and the denominator of which is the averagevalue of all the assets.
(v) For purposes of this subdivision, average value shall bedetermined using the rules for determining the average value of tangiblepersonal property set forth in § 44-14-14.4(c) and (d).
(3) In lieu of using the method set forth in subdivision (2)of this subsection, the taxpayer may elect, or the tax administrator mayrequire in order to fairly represent the business activity of the taxpayer inthis state, the use of the method set forth in this subdivision.
(ii) The amount of interest, dividends, net gains (but notless than zero) and other income from investment assets and activities in theinvestment account to be attributed to this state and included in the numeratoris determined by multiplying all the income from the assets and activities by afraction, the numerator of which is the gross income from the assets andactivities which are properly assigned to a regular place of business of thetaxpayer within this state and the denominator of which is the gross incomefrom all the assets and activities.
(iii) The amount of interest from federal funds sold andpurchased and from securities purchased under resale agreements and securitiessold under repurchase agreements attributable to this state and included in thenumerator is determined by multiplying the amount described in subdivision (1)of this subsection from the funds and the securities by a fraction, thenumerator of which is the gross income from the funds and the securities whichare properly assigned to a regular place of business of the taxpayer withinthis state and the denominator of which is the gross income from all the fundsand the securities.
(iv) The amount of interest, dividends, gains and otherincome from trading assets and activities including, but not limited to, assetsand activities in the matched book, in the arbitrage book and foreign currencytransactions but excluding amounts described in paragraphs (ii) and (iii) ofthis subdivision, attributable to this state and included in the numerator isdetermined by multiplying the amount described in paragraph (1)(iii) of thissubsection by a fraction, the numerator of which is the gross income from thetrading assets and activities which are properly assigned to a regular place ofbusiness of the taxpayer within this state and the denominator of which is thegross income from all the assets and activities.
(4) If the taxpayer elects or is required by the taxadministrator to use the method set forth in subdivision (3) of thissubsection, it shall use this method on all subsequent returns unless thetaxpayer receives prior permission from the tax administrator to use, or thetax administrator requires a different method.
(5) The taxpayer shall have the burden of proving that aninvestment asset or activity or trading asset or activity was properly assignedto a regular place of business outside of this state by demonstrating that theday-to-day decisions regarding the asset or activity occurred at a regularplace of business outside of this state. Where the day-to-day decisionsregarding an investment asset or activity or trading asset or activity occur atmore than one regular place of business and one regular place of business is inthis state and one regular place of business is outside of this state, theasset or activity shall be considered to be located at the regular place ofbusiness of the taxpayer where the investment or trading policies or guidelineswith respect to the asset or activity are established. Unless the taxpayerdemonstrates to the contrary, the policies and guidelines shall be presumed tobe established at the commercial domicile of the taxpayer.
(n) All other receipts. The numerator of the receiptsfactor includes all other receipts pursuant to the provisions of §44-14-14.
(o) Attribution of certain receipts to commercialdomicile. All receipts which would be assigned under this section to astate in which the taxpayer is not taxable shall be included in the numeratorof the receipts factor, if the taxpayer's commercial domicile is in this state.
