Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 11 - Corporation Income Tax › Section I-1134 - Determination of Louisiana Apportionment Percent

Current through Register Vol. 50, No. 6, June 20, 2024
A. General.
				R.S.
				47:287.95 provides for an apportionment
				percent that is to be applied to the taxpayer's total net apportionable income
				in determining the Louisiana net apportionable income. Specific formulas are
				prescribed for air, pipeline, other transportation businesses, and certain
				service enterprises. A general formula is prescribed for manufacturing,
				merchandising and any other business for which a formula is not specifically
				prescribed. The statute contemplates that only one specific formula be used in
				determining the apportionment percent, that being the formula prescribed for
				the taxpayer's primary business. As a general rule, where a taxpayer is engaged
				in more than one business, the taxpayer's primary business shall be that which
				is the primary source of the taxpayer's net apportionable income. When the
				numerator and denominator are zero in any one or more ratios in the
				apportionment formula, such ratio shall be dropped from the apportionment
				formula and the arithmetical average determined from the total remaining
				ratios.
B. Property Ratio
1. The value of immovable and corporeal
				movable property owned by the taxpayer and used in the production of net
				apportionable income is included in each formula except those provided for
				certain service businesses and those using the single sales ratio under the
				general formula. Where only a part of the property is used in the production of
				apportionable income, only the value of that portion so used shall be included
				in the property ratio. However, where the entire property is used in the
				production of both allocable and apportionable income the value of the entire
				property shall be included in the property ratio. Idle property and property
				under construction, during such construction and prior to being placed in
				service, shall not be included in the property ratio. Property held as reserve
				or standby facilities, or property held as a reserve source of materials shall
				be considered used. For example, a taxpayer who purchases a lignite deposit
				that is held as a reserve source of fuel should include the value of such
				deposits in the property ratio. Non-productive mineral leases are considered to
				be held for such use and should be included in the property ratio. The value of
				inventories of merchandise in transit shall be allocated to the state in which
				their delivery destination is located in the absence of conclusive evidence to
				the contrary.
				R.S.
				47:287.95(A)(1) provides
				that aircraft owned by a taxpayer whose net apportionable income is derived
				primarily from air transportation should not be included in the property
				ratio.
2. Proration of Rolling
				Stock and Other Mobile Equipment. The average value of rolling stock and other
				mobile equipment owned by the taxpayer shall be prorated within and without
				Louisiana as set forth below.
a. The value of
				diesel locomotives shall be allocated to Louisiana on the basis of the ratio of
				diesel locomotive miles in Louisiana to total diesel locomotive
				miles.
b. The value of other
				locomotives shall be allocated to Louisiana on the basis of the ratio of other
				locomotive miles in Louisiana to total other locomotive miles.
c. The value of freight train cars shall be
				allocated to Louisiana on the basis of the ratio of freight car miles in
				Louisiana to total freight car miles.
d. The value of passenger cars shall be
				allocated to Louisiana on the basis of the ratio of passenger car miles in
				Louisiana to total passenger car miles.
e. The value of passenger buses shall be
				allocated to Louisiana on the basis of the ratio of bus miles in Louisiana to
				total bus miles.
f. The value of
				diesel trucks shall be allocated to Louisiana on the basis of the ratio of
				diesel truck miles in Louisiana to total diesel truck miles.
g. The value of other trucks shall be
				allocated to Louisiana on the basis of the ratio of other truck miles in
				Louisiana to total other truck miles.
h. The value of trailers shall be allocated
				to Louisiana on the basis of the ratio of trailer miles in Louisiana to total
				trailer miles.
i. The value of
				towboats shall be allocated to Louisiana on the basis of the ratio of towboat
				miles in Louisiana to total towboat miles. In the determination of Louisiana
				towboat miles, one half of the mileage of all navigable rivers or streams
				bordering on both Louisiana and another state shall be considered Louisiana
				miles.
j. The value of tugs shall
				be allocated to Louisiana on the basis of the ratio of tug miles in Louisiana
				to total tug miles. In the determination of Louisiana tug miles, one half of
				the mileage of all navigable rivers or streams bordering on both Louisiana and
				another state shall be considered Louisiana miles.
k. The value of barges shall be allocated to
				Louisiana on the basis of the ratio of barge miles in Louisiana to total barge
				miles. In the determination of Louisiana barge miles, one half of the mileage
				of all navigable rivers or streams bordering on both Louisiana and another
				state shall be considered Louisiana miles.
l. The value of work and miscellaneous
				equipment shall be allocated to Louisiana on the basis of the ratio of track
				miles in Louisiana to total track miles in the case of a railroad, on the basis
				of the ratio of bank miles operated in Louisiana to total bank miles operated
				in the case of inland waterway transportation and on the basis of the ratio of
				route miles operated in Louisiana to total route miles operated in the case of
				truck and bus transportation. In the determination of bank miles, one half of
				the bank mileage of navigable rivers or streams bordering on both Louisiana and
				another state shall be considered Louisiana bank miles.
m. The value of other floating equipment
				shall be allocated to Louisiana on the basis of the ratio of operating
				equipment miles within Louisiana to the total operating equipment miles, for
				the particular equipment to be allocated. In the determination of Louisiana
				operating equipment miles, one half of the mileage of all navigable rivers or
				streams bordering on both Louisiana and another state shall be considered
				Louisiana operating equipment miles.
3. Insufficient Records. In any case where
				the information necessary to determine the ratios listed above is not readily
				available from the taxpayer's records, the secretary, in his discretion, may
				permit or require the allocation of such equipment by any method deemed
				reasonable by him.