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.
