2.465 Apportionment of apportionable income

of interstate air freight forwarders affiliated with a di- rect air carrier. (1) GENERAL. The apportionable income of a qualified air freight forwarder affiliated with a direct air carrier and engaged in business in and outside this state shall be appor- tioned to Wisconsin as described in this section, except if the qualified air freight forwarder is in a combined group, its Wis- consin 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). Note: A qualified air freight forwarder that is a corporation may be in a com- bined 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. Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published. (2) DEFINITIONS. In this section: (a) An air freight forwarder is XaffiliatedY with a direct air car- rier if all of the following apply: 1. The air freight forwarder owns or controls either directly or indirectly at least 80% of the ownership interests of the direct air carrier, or at least 80% of the ownership interests of the air freight forwarder is owned or controlled either directly or indi- rectly by the direct air carrier, or at least 80% of the ownership in- terests of both the air freight forwarder and the direct air carrier is owned or controlled either directly or indirectly by the same interests. 2. The air freight forwarder is principally engaged in the business of air freight forwarding. 3. The air freight forwarder[s air freight forwarding business is carried on principally with the direct air carrier. (b) XCombined groupY has the same meaning as in s. Tax 2.60 (2) (a). (c) XDirect air carrierY means a business entity principally en- gaged in air transportation through the direct operation of aircraft under a certificate issued by the federal aviation administration. (d) XEngaged in business in and outside this stateY has the same meaning as in s. Tax 2.39 (2) (b). (e) XOriginating revenue in this stateY means all revenue de- rived from shipments that were first physically consigned to a qualified air freight forwarder in this state for transportation, re- gardless of the method or methods of transportation. (f) XQualified air freight forwarderY means a person to whom all of the following apply: 1. The person is engaged primarily in the facilitation of the transportation of property by air. 2. The person does not operate aircraft. 3. The person is in the same combined group as an affiliated direct air carrier. (3) APPORTIONMENT FORMULA COMPUTATION. For taxable years beginning on or after January 1, 2014, a qualified air freight forwarder that is engaged in business in and outside this state shall apportion its apportionable income to this state on the basis of the ratio obtained by taking the arithmetical average of the fol- lowing 3 ratios: (a) The ratio which aircraft arrivals and departures within this state scheduled by the affiliated direct air carrier during the cal- endar or fiscal year bears to the total aircraft arrivals and depar- tures within and without this state scheduled by such direct air carrier during the same period; provided that if the affiliated di- rect air carrier conducts nonscheduled operations all arrivals and departures shall be substituted for scheduled arrivals and departures. (b) The ratio which the revenue tons handled by the affiliated direct air 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 qualified air freight forwarder[s orig- inating revenue in this state for the calendar or fiscal year bears to the total revenue of such qualified air freight forwarder within and without this state for the same period. History: CR 13-078: cr. Register April 2014 No. 700, eff. 5-1-14.