Missouri Code of State Regulations › Title 12 - DEPARTMENT OF REVENUE › Division 10 - Director of Revenue › Chapter 2 - Income Tax › Section 12 CSR 10-2.260 - Apportionment Method for Broadcasters (Beginning on or After January 1, 2020)

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule applies section 143.455.13.(1),
				  RSMo to implement an alternative corporation income tax apportionment method
				  for broadcasters.
(1) For any
				taxpayer that is a broadcaster as defined in subsection (2)(A) of this rule and
				files its original income tax return on or after January 1, 2020, shall use the
				apportionment method set forth in section (5) of this rule to compute its
				Missouri taxable income from sources in this state.
(2) Definitions.
(A) "Broadcaster" is a taxpayer that is a
				television broadcast network, a cable program network, or a television
				distribution company. The term "broadcaster" does not include a platform
				distribution company or a television broadcast station.
(B) "Broadcast customer" is a person,
				corporation, partnership, limited liability company, or other entity, such as
				an advertiser or a platform distribution company, that has a direct connection
				or contractual relationship with the broadcaster under which revenue is derived
				by the broadcaster.
(C) "Business
				customer" is a customer that is a business operating in any form, including an
				individual who operates a business through the form of a sole proprietorship.
				Sales to a non-profit organization, to a trust, to the U.S. government, to any
				foreign, state, or local government, or to any agent or instrumentality of such
				government shall be treated as sales to a business customer and shall be
				apportioned consistent with the rules that apply to such sales.
(D) "Commercial domicile" is the principal
				place from which the trade or business of the business entity is directed or
				managed.
(E) "Corporation" is an
				entity defined in section 143.441.1.(1), RSMo.
(F) "Film programming" is one (1) or more
				performance, event, or production, or segments of performances, events, or
				productions, intended to be distributed for visual and/or auditory perception,
				including, but not limited to, news, entertainment, sporting events, plays,
				stories, or other literary, commercial, educational, or artistic
				works.
(G) "Income tax return" is
				the Missouri Corporation Income Tax Return for the taxable year.
(H) "Individual customer" is any customer who
				is not a business customer as defined in subsection (2)(C) of this
				rule.
(I) "Original return" is the
				initial income tax return filed for the taxable year, and does not mean an
				amended income tax return filed for a taxable year for which a corporation has
				previously filed any income tax return.
(J) "Platform distribution company" is a
				cable service provider, a direct broadcast satellite system, an internet
				content distributor, or any other distributor that directly charges viewers for
				access to any film programming.
(K)
				"Taxable year" is the same period the corporation uses for reporting its
				federal income tax liability under the Internal Revenue Code of 1986, as
				amended.