New Mexico Administrative Code › Title 3 - TAXATION › Chapter 5 - UNIFORM DIVISION OF INCOME FOR TAX PURPOSES › Part 19 - EQUITABLE ADJUSTMENT OF STANDARD ALLOCATION OR APPORTIONMENT › Section 3.5.19.18 - SPECIAL RULES - TELEVISION AND RADIO BROADCASTING

Current through Register Vol. 35, No. 13, July 16, 2024
A. The following special rules are
				established in respect to the apportionment of income from television and radio
				broadcasting by a broadcaster that is taxable both in this state and in one or
				more other states.
B.
In
				general.
When a person in the business of broadcasting film or radio
				programming, whether through the public airways, by cable, direct or indirect
				satellite transmission or any other means of communication, either through a
				network (including owned and affiliated stations) or through an affiliated,
				unaffiliated or independent television or radio broadcasting station, has
				income from sources both within and without this state, the amount of business
				income from sources within this state shall be determined pursuant to Article
				IV. of the multistate tax compact and the regulations issued thereunder by this
				state, except as modified by Section 3.5.19.18 NMAC.
C.
Business and nonbusiness
				income.
For definitions and regulations for determining whether income
				shall be classified as "business" or "nonbusiness" income, see Part 3.5.1
				NMAC.
D.
Definitions.
The following definitions are applicable to the
				terms contained in this section, unless the context clearly requires otherwise.
(1) "Film" or "film programming" means any
				and all performances, events or productions telecast on television, including
				but not limited to news, sporting events, plays, stories or other literary,
				commercial, educational or artistic works, through the use of video tape, disc
				or any other type of format or medium. Each episode of a series of films
				produced for television shall constitute a separate "film" notwithstanding that
				the series relates to the same principal subject and is produced during one or
				more tax periods.
(2)
				"Outer-jurisdictional" property means certain types of tangible personal
				property, such as orbiting satellites, undersea transmission cables and the
				like, that are owned or rented by the taxpayer and used in the business of
				telecasting or broadcasting, but which are not physically located in any
				particular state.
(3) "Radio" or
				"radio programming" means any and all performances, events or productions
				broadcast on radio, including but not limited to news, sporting events, plays,
				stories or other literary, commercial, educational or artistic works, through
				the use of an audio tape, disc or any other format or medium. Each episode of a
				series of radio programming produced for radio broadcast shall constitute a
				separate "radio programming" notwithstanding that the series relates to the
				same principal subject and is produced during one or more tax
				periods.
(4) "Release" or "in
				release" means the placing of film or radio programming into service. A film or
				radio program is placed into service when it is first broadcast to the primary
				audience for which the program was created. Thus, for example, a film is placed
				into service when it is first publicly telecast for entertainment, educational,
				commercial, artistic or other purpose. Each episode of a television or radio
				series is placed into service when it is first broadcast. A program is not
				placed into service merely because it is completed and therefore in a condition
				or state of readiness and availability for broadcast or merely because it is
				previewed to prospective sponsors or purchasers.
(5) "Rent" shall include license fees or
				other payments or consideration provided in exchange for the broadcast or other
				use of television or radio programming.
(6) A "subscriber" to a cable television
				system is the individual residence or other outlet which is the ultimate
				recipient of the transmission.
(7)
				"Telecast" or "broadcast" (sometimes used interchangeably with respect to
				television) means the transmission of television or radio programming,
				respectively, by an electronic or other signal conducted by radiowaves or
				microwaves or by wires, lines, coaxial cables, wave guides, fiber optics,
				satellite transmissions directly or indirectly to viewers and listeners or by
				any other means of communication.