Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0465 - Sales Factor for Interstate Broadcasters

Current through Register Vol. 63, No. 7, July 1, 2024
This rule applies to tax years beginning before January 1,
				2014.
(1) In general, if a taxpayer
			 broadcasts to subscribers or to an audience that is located both within and
			 without this state and the broadcaster is taxable in another state under the
			 provisions of ORS 314.620, then the interstate
			 broadcaster is required to use an audience factor to determine the amount of
			 gross receipts from broadcasting attributable to this state.
(2) The audience factor for television,
			 radio, or network programming shall be determined by the ratio that the
			 taxpayer's in-state viewing or listening audience bears to its total United
			 States viewing or listening audience. In the case of television, the audience
			 factor shall be determined by reference to the rating statistics as reflected
			 in such sources as Arbitron, Nielsen or other comparable resources or by the
			 average circulation statistics published annually in the Television and Cable
			 Factbook, "Stations Volume" by Television Digest, Inc., Washington, D.C.,
			 provided that the source selected is consistently used from year to year for
			 such purpose. In the case of radio, the audience factor shall be determined by
			 reference to rating statistics as reflected in such sources as Arbitron,
			 Birch/Scarborough Research, or other comparable resources, provided that the
			 source selected is consistently used from year to year for such
			 purpose.
(3) If none of the
			 forgoing sources are available, or if available, none is in form or content
			 sufficient for such purposes, then the audience factor shall be determined by
			 the ratio that the population of the broadcast area located within this state
			 bears to the population of the broadcast area in all states.
(4) Gross receipts from live telecasts and
			 films in release to or by a cable television system shall be attributed to this
			 state in the ratio (hereafter "audience factor") that the number of subscribers
			 located in this state for such cable television system bears to the total
			 number of subscribers of such cable television system in the United States. If
			 the number of subscribers cannot be accurately determined from the records
			 maintained by the taxpayer, the audience factor ratio shall be determined on
			 the basis of the applicable year's subscription statistics published in Cable
			 Vision, International Thompson Communications, Inc., Denver, Colorado, if
			 available, or, if not available, by other published market surveys.
(5) If none of the foregoing resources are
			 available, or, if available, none is in form or content sufficient for such
			 purposes, then the audience factor shall be determined by the ratio that the
			 population of the area served by the cable system service located within this
			 state bears to the population of the area served by the cable system in all
			 states in which the cable system has subscribers.
(6) To the extent that the gross receipts
			 from such live television broadcasting, film, or radio programming, as
			 determined pursuant to paragraphs (2) through (5), include receipts derived
			 from broadcasts to audiences located outside the United States ("foreign-based
			 receipts"), the total gross receipts against which the audience factor shall be
			 applied shall be modified so that such foreign-based receipts are not used to
			 affect the amount of receipts that are to be apportioned to the state. Such
			 modification shall consist of deducting from total receipts, prior to the
			 application thereto of the audience factor, that amount of receipts derived
			 from broadcasts to audiences located outside the United States.
Example: XYZ Television Network Co. has gross receipts from all
				broadcasting of films of $1 billion of which a total of $200,000,000 was
				derived from advertising receipts and license fees attributable to releases of
				its films in foreign television markets and $800,000,000 attributable to the
				United States market. Assume that the foreign countries into which its
				programming has been telecast or sold or licensed for telecast would have
				jurisdiction to impose their income tax upon XYZ Television Network Co., then
				its in-state gross receipts attributable to its telecasting activity would be
				determined as follows: $1,000,000,000 - $200,000,000 ($800,000,000) = (audience
				factor).
(7) Receipts from
			 the sale, rental, licensing or other disposition of audio or video cassettes,
			 discs, or similar medium intended for home viewing or listening shall be
			 included in the sales factor as provided in OAR 150-314-0429 and
			 150-314-0431.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  314.684