New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter I - Franchise and Certain Business Taxes › Subchapter E - Franchise Tax On Transportation And Transmission Corporations › Part 41 - Allocation Of Gross Earnings By Telephone And Telegraph Corporations From Transmission Services › Section 41.1 - General

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A telephone or
				  telegraph corporation shall include in its computation of gross earnings all
				  gross operating revenues derived from intrastate transmission services and that
				  portion of gross operating revenues from interstate and foreign transmission
				  services attributable to New York State.
(b) If the books of the taxpayer, kept in
				  accordance with regulatory requirements, reflect the amount of gross operating
				  revenues from interstate and foreign transmission services attributable to New
				  York State, the taxpayer must allocate such gross operating revenues to New
				  York State in accordance with the allocation used for regulatory purposes (see
				  section
				  41.2  of
				  this Part - Allocation by accounting).
(c) If the books of the taxpayer, with
				  respect to a particular item or items of gross operating revenues from
				  interstate and foreign transmission services, do not reflect the amount of
				  gross operating revenues from interstate and foreign transmission services
				  attributable to New York State, then such item or items shall be allocated by
				  the allocation by formula method (see section
				  41.3  of
				  this Part - Allocation by formula).
(d) The term gross earnings of telephone or
				  telegraph corporations from transmission services means gross operating
				  revenues from New York State intrastate transmission services and the portion
				  of gross operating revenues from interstate and/or foreign transmission
				  attributable to New York State. For example, gross operating revenues of
				  telephone corporation from transmission services include all operating
				  revenues, such as Local Service Revenues (including subscribers' station
				  revenues, public telephone revenues, service station, local private line
				  services, and other local service revenues), Toll Service Revenues (including
				  message tolls, wide area toll services, toll private line services and other
				  toll revenues) and Miscellaneous Revenues (such as telegraph commissions,
				  directory advertising and sales, rent revenues, revenues from general services
				  and licenses and other operating revenues not provided for
				  elsewhere).
(e) Where the
				  Commissioner of Taxation and Finance decides that the allocation percentage
				  computed on the basis of the factors or methods prescribed in this Subpart does
				  not fairly and equitably reflect gross earnings of the taxpayer from all
				  sources within New York State, the commissioner shall use other methods of
				  allocation or apportionment which fairly and equitably reflect gross earnings
				  from all sources within New York State. Thus, where such factors or methods
				  work hardship or do not do justice either to the taxpayer or to the State, this
				  provision authorizes the commissioner to use other methods to reflect more
				  accurately business activity in New York. Also, the commissioner may, in order
				  to properly reflect gross earnings, determine the taxable year or period in
				  which any item of gross earnings shall be included without regard to the method
				  of accounting employed by the taxpayer.