For purposes of computing the numerator of the property factor for satellite property, the taxpayer determines the percentage of earth stations serviced in Florida. The denominator equals the total number of earth stations serviced by the company. Florida does not allow any special credits for telecommunications companies. Illinois Telecommunications companies and cable television companies in Illinois pay tax under the corporate income tax and a personal property replacement tax. The tax rates equal 4.8 percent and 2.5 percent, respectively.
Taxpayers allocate income using a three-factor allocation formula.
The formula consists of a property factor, a payroll factor, and a double-weighted sales factor. Illinois does not provide any special credits for telephone or cable television companies. The current tax rate equals 2.3 percent. A receipt becomes attributable to Michigan if the customer has a Michigan billing address. Michigan does not include satellite property in the numerator or the denominator of the property factor.