2.47 Apportionment of apportionable income

of interstate motor carriers. (1) GENERAL. The apportion- able income of a motor carrier engaged in business in and outside this state shall be apportioned to Wisconsin as described in this section, except if the motor carrier 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 de- tailed in s. Tax 2.61 (7). Note: A motor carrier that is a corporation may be in a combined group for tax- able years beginning on or after January 1, 2009. See s. Tax 2.61 (2) for a descrip- tion of corporations required to use combined reporting. (1m) DEFINITIONS. In this section: (a) XEngaged in business in and outside this stateY has the same meaning as in s. Tax 2.39 (2) (b). (b) XTon mileY means the movement of one ton of persons or property, or both, the distance of one mile. For carriage of per- sons, each person shall be considered the equivalent of 200 pounds. (2) APPORTIONMENT FORMULA COMPUTATION. For taxable years beginning on or after January 1, 1997, a motor carrier that is engaged in business in and outside this state shall apportion its apportionable income to this state on the basis of the arithmetical average of the following 2 factors: (a) The ratio of the gross receipts from carriage of persons or property, or both, first acquired for carriage in Wisconsin to the total gross receipts from carriage of persons or property, or both, everywhere. (b) The ratio of ton miles of carriage in Wisconsin to ton miles of carriage everywhere. Note: Motor carriers that are in combined groups must adjust the numerator and denominator 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. (3) SUBSTITUTION OF FACTORS. Whenever gross receipts data is not available the department may authorize or direct sub- stitution of a similar factor, such as gross tonnage, and whenever ton mile data is not available the department may similarly autho- rize substitution of a similar factor, such as revenue miles. (4) MERCANTILE AND MANUFACTURING BUSINESSES. This section does not apply to any mercantile or manufacturing busi- ness which engages in some interstate carriage as an incident of the mercantile or manufacturing business. Note: Section Tax 2.47 interprets ss. 71.04 (8) (c) and 71.25 (10) (c), Stats. History: Cr. Register, April, 1966, No. 124, eff. 5-1-66; am. (intro.). Register, August, 1973, No. 212, eff. 9-1-73; r. and recr. Register, October, 1996, No. 490, eff. 1-1-97; EmR0943: emerg. am. (title), (2) (title) and (intro.), cr. (intro.), r. and recr. (1), eff. 12-31-09; CR 10-001: am. (title), (2) (title) and (intro.), r. and recr. (1), cr. (1m) Register June 2010 No. 654, eff. 7-1-10; correction to (1) (title) made under s. 13.92 (4)(b) 7., Stats., Register June 2010 No. 654.