2.46 Apportionment of apportionable income

of interstate air carriers. (1) GENERAL. The apportionable income of an air carrier engaged in business in and outside this state shall be apportioned to Wisconsin as described in this sec- tion, except if the air carrier is in a combined group, its Wiscon- sin share of the combined group[s apportionable income is com- puted as provided in s. 71.255 (5), Stats., and further detailed in s. Tax 2.61 (7). Note: An air carrier 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) DEFINITION. In this section, Xengaged in business in and outside this stateY has the same meaning as in s. Tax 2.39 (2) (b). (3) APPORTIONMENT FORMULA COMPUTATION. An air car- rier that is engaged in business in and outside this state shall ap- portion its apportionable income to this state on the basis of the ratio obtained by taking the arithmetical average of the following 3 ratios: (a) The ratio which the aircraft arrivals and departures within this state scheduled by such carrier during the calendar or fiscal year bears to the total aircraft arrivals and departures within and without this state scheduled by such carrier during the same pe- riod; provided that in the case of nonscheduled operations all ar- rivals and departures shall be substituted for scheduled arrivals and departures. (b) The ratio which the revenue tons handled by such carrier at airports within this state during the calendar or fiscal year bears to the total revenue tons handled at airports within and without this state during the same period. (c) The ratio which such air carrier[s originating revenue within this state for the calendar or fiscal year bears to the total originating revenue within and without this state for the same period. Note: Air carriers that are in combined groups must adjust the numerator and de- nominator of each of these factors and then convert the arithmetical average of these factors to the modified sales factor. The modified sales factor then determines the company[s Wisconsin share of the combined group[s apportionable income. See s. 71.255 (5), Stats., and s. Tax 2.61 (7) for details. Note: Section Tax 2.46 interprets ss. 71.04 (8) (c) and 71.25 (10) (c), Stats. History: Cr. Register, December, 1956, No. 12, eff. 1-1-57; am. (intro.). Register, August, 1973, No. 212, eff. 9-1-73; EmR0943: emerg. r. and recr. eff 12-31-09; CR 10-001: r. and recr. Register June 2010 No. 654, eff. 7-1-10; correction to (1) (title) made under s. 13.92 (4) (b) 2., Stats., Register June 2010 No. 654.