N.H. Admin. Code § Rev 304.08 - Adjustments Required To Apportionment Factors For Printing and Publishing Industries

(a) For purposes of this section, the following definitions shall apply:

(1) "Outer-jurisdictional property" means tangible personal property, such as orbiting satellites and undersea transmission cables, which are not physically located in any particular state, that are:

a. Owned or rented by the business organization; and

b. Used in the business of:

1. Publishing;

2. Licensing;

3. Selling; or

4. Otherwise distributing printed material;

(2) "Print" or "printed material" means the physical or digital embodiment or printed version of any thought or expression including, without limitation:

a. A play;

b. A story;

c. An article;

d. A column; or

e. Other literary, commercial, educational, artistic or other written or printed work and may take the form of:

1. A book;

2. A newspaper;

3. A magazine;

4. A periodical;

5. A trade journal; or

6. Any other form of printed matter contained on any medium or property;

(3) "Purchaser" or "subscriber" means:

a. The individual location of the:

1. Residence;

2. Business; or

3. Other outlet which is the final recipient of the print or printed material; and

b. Not a wholesaler or other distributor of print or printed material; and

(4) "Terrestrial facility" means any:

a. Telephone line;

b. Cable;

c. Fiber optic;

d. Microwave transmission or reception equipment;

e. Earth station;

f. Satellite dish; or

g. Antennae or other relay system or device that is used to:

1. Receive;

2. Transmit;

3. Relay; or

4. Carry any data, voice, image, or other information transmitted from or by any outer-jurisdictional property to the ultimate recipient thereof.

(b) Business organizations having income derived from the publishing, sale, licensing, or other distribution of books, newspapers, magazines, periodicals, trade journals, or other printed material, shall apportion their income to New Hampshire using the apportionment provisions contained in RSA 77-A:3, Rev 304.02, Rev 304.03, Rev 304.04, and Rev 304.041, subject to the adjustments in paragraphs (c), (d), and (e), below.

(c) The property factor's components shall be calculated utilizing the following provisions:

(1) The property factor shall be the sum of average New Hampshire outer-jurisdictional property and average New Hampshire non-outer jurisdictional property, divided by the sum of average outer-jurisdictional property everywhere and average non-outer jurisdictional property everywhere;

(2) Average New Hampshire non-outer jurisdictional property, and average non-outer jurisdictional property everywhere shall be calculated using the provisions of Rev 304.02;

(3) Average outer-jurisdictional property everywhere shall include the average value, as provided in Rev 304.02(j), of all outer-jurisdictional property owned, rented, and used by the business organization;

(4) Average New Hampshire outer-jurisdictional property shall equal average outer-jurisdictional property everywhere:

a. Multiplied by the number of uplinks and downlinks used during the taxable period to transmit from New Hampshire and to receive in New Hampshire any data, voice, image, or other information; and

b. Divided by the total number of uplinks and downlinks the business organization used for transmissions everywhere;

(5) Should information requested in (c)(4) above not be available or should such measurement of activity not be applicable to the type of outer-jurisdictional property used by the business organization, the average New Hampshire outer-jurisdictional property shall be calculated as follows:

a. Multiplied by the amount of time, in terms of hours and minutes of use or such other measurement of use of outer-jurisdictional property used during the taxable period to transmit from New Hampshire and to receive in New Hampshire any data, voice, image, or other information; and

b. Divided by the total amount of time or other measurement of use that was used for transmissions everywhere;

(6) Outer-jurisdictional property shall be considered to have been used by the business organization in its business activities within New Hampshire when such property, wherever located, has been employed by the business organization in any manner in the following functions:

a. The publication, sale, licensing, or other distribution of books, newspapers, magazines, or other printed material; and

b. Transmission of any data, voice, image, or other information to or from New Hampshire, through an earth station or terrestrial facility located in New Hampshire; and

(7) The property factor shall be expressed by formula as follows:

Average NH Outer-Jurisdictional Property	+	Average NH Non-Outer Jurisdictional Property	Total Average NH Property
--------------------------------------------------------------------------------------			=	---------------
Average Outer-Jurisdictional Property Everywhere	+	Non Outer-Jurisdictional Property Everywhere	Total Average Property Everywhere

(d) The payroll factor shall be calculated in accordance with Rev 304.03.

(e) The sales factor's components shall be calculated in the following manner:

(1) The sales factor shall be the sum of New Hampshire print or printed material sales and New Hampshire non-print or non-printed material sales, divided by the sum of print or printed material sales everywhere and non-print or non-printed material sales everywhere;

(2) New Hampshire non-print or non-printed material sales, and non-print or non-printed material sales everywhere, shall be calculated using the provisions of Rev 304.04 and Rev 304.041;

(3) Print or printed material sales everywhere shall include all receipts from advertising and the sale, rental, or other use of the business organization's printed materials or customer lists;

(4) New Hampshire print or printed material sales for each publication shall be equal to the receipts calculated in (e)(3) above:

a. Multiplied by the business organization's in-state circulation to purchasers and subscribers of its printed material; and

b. Divided by its total circulation to purchasers and subscribers everywhere;

(5) In the event the purchaser or subscriber is the United States government or the business organization is not taxable in a state, the gross receipts from all sources associated with the printed materials, shall be included in the numerator of the sales factor of New Hampshire if the printed material or other property is shipped from an in-state:

a. Office;

b. Store;

c. Warehouse;

d. Factory; or

e. Other place of storage or business;

(6) The method used to determine the circulation of a publication shall be used consistently between the numerator and the denominator and from year to year; and

(7) The sales factor shall be expressed by formula as follows:

NH Print or Printed Material Sales	+	NH Non-Print or Non-Printed Material Sales		Total NH Sales
-----------------------------------------------------------------------------------------				=	----------------
Print or Printed Material Sales Everywhere	+		Non-Print or Non-Printed Material Sales Everywhere	Total Sales Everywhere

Notes

N.H. Admin. Code § Rev 304.08

#5910, eff 10-14-94; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06

Amended byVolume XXXV Number 06, Filed February 12, 2015 , Proposed by #10758, Effective 1/16/2015, Expires1/16/2025. Amended by Volume XLI Number 14, Filed April 8, 2021, Proposed by #13177, Effective 3/6/2021, Expires 3/6/2021