2.475 Apportionment of apportionable income

of interstate railroads and car line companies. (1) GENERAL. The apportionable income of a railroad or car line company engaged in business in and outside this state shall be ap- portioned to Wisconsin as described in this section, except if the company is in a combined group, its Wisconsin share of the com- bined 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 railroad or car line company 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. (1m) DEFINITIONS. (a) XEngaged in business in and outside this stateY has the same meaning as in s. Tax 2.39 (2) (b). (b) XGross receipts from carriageY means gross receipts re- ceived for the carriage of property or persons net of interline pay- ments made to other railroads as a result of the interchange of car- riage between and among railroads. Gross receipts from carriage includes interline payments received from other railroads. (c) XRevenue ton mileY means the movement of one net ton of property or persons, or both, the distance of one mile, for consid- eration. For carriage of persons, each person shall be considered the equivalent of 150 pounds, and the average weight of the con- 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. WISCONSIN ADMINISTRATIVE CODE tents of head end cars, or Xbaggage cars,Y is considered to be 4 tons. (2) INTERSTATE RAILROADS. With respect to the imposition of Wisconsin franchise or income tax measured by or on net in- come for taxable years beginning on or after January 1, 1991, the apportionable income of a railroad engaged in business in and outside this state shall be apportioned to Wisconsin on the basis of the arithmetical average of the following 2 factors: (a) The ratio of the gross receipts from carriage of property or persons, or both, first acquired for carriage in Wisconsin to the total gross receipts from carriage of property or persons, or both, everywhere. (b) The ratio of revenue ton miles of carriage in Wisconsin to revenue ton miles of carriage everywhere. Note: Railroads 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. (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 revenue ton mile data is not available the department may simi- larly authorize substitution of a similar factor, such as revenue miles. (4) CAR LINE COMPANIES. With respect to the imposition of Wisconsin franchise or income tax measured by or on net income for taxable years beginning on or after January 1, 1991, the in- come of a car line company engaged in business in and outside this state shall be allocated or apportioned to Wisconsin as pro- vided in s. 71.04 (4) or 71.25 (6), Stats., and s. Tax 2.39. Note: Section 71.26 (1) (a), Stats., was amended by 1991 Wis. Act 39, effective for taxable years beginning on or after January 1, 1991. For taxable years beginning before January 1, 1991, railroads and car line companies were exempt from Wiscon- sin franchise and income taxation. Note: Section Tax 2.475 interprets ss. 71.04 (8) (c) and 71.25 (10) (c), Stats. History: Emerg. cr. eff. 2-17-92; cr. Register, August, 1992, No. 440, eff. 9-1-92; EmR0943: emerg. am. (title), (2) (intro.) and (4), cr. (intro.) and (1) (a), renum. (1) (a) and (b) to be (1) (b) and (c), eff. 12-31-09; CR 10-001: am. (title), (2) (intro.) and (4), r. and recr. (1), cr. (1m) Register June 2010 No. 654, eff. 7-1-10; corrections to (1) (title) and (1m) (title) made under s. 13.92 (4) (b) 2., Stats., Register June 2010 No. 654; CR 17-019: am. (1) (title), (2) (intro.) Register June 2018 No. 750 eff. 7-1- 18.