Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.502 - Apportionment of apportionable income of interstate telecommunications companies

Current through June 24, 2024
(1) SCOPE. A telecommunications company that
			 is engaged in business both in and outside this state shall apportion its
			 apportionable income as provided in this section, except if the
			 telecommunications company is in a combined group, its Wisconsin share of the
			 combined group's apportionable income is computed as provided in s.
			 71.255(5),
			 Stats., and further detailed in s.
			 Tax
			 2.61(7). Nonapportionable income
			 shall be allocated as provided in s.
			 71.25(5)
			 (b), Stats.
Note:
A telecommunications company that is a
				corporation may be in a combined group for taxable years beginning on or after
				January 1, 2009. See s.
				Tax
				2.61(2) for a description of
				corporations required to use combined reporting.
(2) DEFINITIONS. In this section:
(a) "Cable television service" means cable
			 service as defined in
			 47
			 USC 522(6) when provided
			 over a cable system as defined in
			 47
			 USC 522(7).
(am) "Engaged in business in and outside this
			 state" has the same meaning as in s.
			 Tax
			 2.39(2) (b).
(b) "Payroll factor" means the payroll
			 fraction computed under s.
			 71.04(6)
			 or
			 71.25(8),
			 2001 Stats., and s.
			 Tax
			 2.39.
(c)
			 "Property factor" means the property fraction computed under s.
			 71.04(5)
			 or
			 71.25(7),
			 2001 Stats., and s.
			 Tax
			 2.39.
(d)
			 "Telecommunications company" means any person that owns, operates, manages, or
			 controls any plant or equipment used to furnish telecommunications services and
			 cable television services within this state directly or indirectly to the
			 public and derives at least 70% of its gross income for the current taxable
			 year from the provision of telecommunications services and cable television
			 services, excluding internet service and the resale of telecommunications by
			 telecommunications resellers as defined in s.
			 196.01(9),
			 Stats. For purposes of the 70% test, gross income does not include interest,
			 dividends, rents, royalties, capital gains or ordinary gains from asset
			 dispositions, other than in the normal course of business. "Telecommunications
			 company" does not include internet service providers.
(e) The following terms have the same
			 definitions as provided in ss.
			 77.51
			 and
			 77.522(4)
			 (a), Stats.:
1. "Ancillary services" (s.
			 77.51(1ba),
			 Stats.).
2. "Call-by-call basis"
			 (s.
			 77.522(4) (a)
			 2, Stats.).
3. "Communications channel" (s.
			 77.522(4) (a)
			 3, Stats.).
4. "Customer" (s.
			 77.522(4) (a)
			 4, Stats.).
5. "Customer channel termination point" (s.
			 77.522(4) (a)
			 5, Stats.).
6. "Home service provider" (s.
			 77.522(4) (a)
			 7, Stats.).
7. "Interstate telecommunications services"
			 (s.
			 77.51(5n),
			 Stats.).
8. "Intrastate
			 telecommunications services" (s.
			 77.51(5r),
			 Stats.).
9. "Mobile
			 telecommunications service" (s.
			 77.522(4) (a)
			 8, Stats.).
10. "Place of primary use" (s.
			 77.522(4) (a)
			 9, Stats.).
11. "Postpaid calling service" (s.
			 77.522(4)
			 (a) 10., Stats.).
12. "Prepaid calling service" (s.
			 77.51(10d),
			 Stats.).
13. "Prepaid wireless
			 calling service" (s.
			 77.51(10f),
			 Stats.).
14. "Private communication
			 service" (s.
			 77.51(11c),
			 Stats.).
15. "Service address" (s.
			 77.51(17m),
			 Stats.).
16. "Telecommunications
			 services" (s.
			 77.51(21n),
			 Stats.).