North Dakota Administrative Code › Title 81 - Tax Commissioner › Article 81-03 - Income Taxes and Privilege Taxes Based on Income › Chapter 81-03-09 - Division of Income › Section 81-03-09-38 - Special rules - Television and radio broadcasting

Current through Supplement No. 393, July, 2024
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.
1.
In general.
When a person in
				the business of broadcasting film or radio programming, whether through the
				public airwaves, 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 must be determined pursuant to North Dakota Century Code chapter 57-38.1
				and article IV of North Dakota Century Code section
				57-59-01, and the regulations
				issued thereunder by this state, except as modified by this section. This
				section also applies to telecasting by cable television systems.
2.
Business and nonbusiness income.
For definitions and regulations for determining whether income must be
				classified as business or nonbusiness income, see sections
				81-03-09-03 through
				81-03-09-05.
3.
Definitions.
The following
				definitions are applicable to the terms contained in this section, unless, the
				context clearly requires otherwise:
a. "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 a videotape, disc, or any other type of format or medium.
				Each episode of a series of films produced for television constitutes a
				separate "film" notwithstanding that the series relates to the same principal
				subject and is produced during one or more tax periods.
b. "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.
c. "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 audiotape,
				disc, or any other format or medium. Each episode of a series of radio
				programming produced for radio broadcast constitutes a separate "radio
				programming" notwithstanding that the series relates to the same principal
				subject and is produced during one or more tax periods.
d. "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 in service when it is first broadcast. A program is not placed in
				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.
e. "Rent" includes license fees or other
				payments or consideration provided in exchange for the broadcast or other use
				of television or radio programming.
f. "Subscriber" to a television system is the
				individual residence or other outlet which is the ultimate recipient of the
				transmission.
g. "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
				communications.