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SCHEDULE 42

Compensation is paid in Idaho if any one of the following tests

for the project in Idaho for the tax year to the total of construc-

are met:

tion costs for that project for the tax year.

•

the individual’s service is performed entirely within Idaho; or

Compensation paid for work on a particular construction project

•

the individual’s service is performed both in and outside Idaho

is included in the payroll factor even though capitalized into the

but the service performed outside Idaho is incidental to the

cost of construction. Compensation is attributable to the state

individual’s service in Idaho; or

where most of the employee’s service is performed, regardless

•

some of the service is performed in Idaho and the base of

of where reported for unemployment tax purposes.

operations or, if there is no base of operations, the place from

Publishers

which the service is directed or controlled is in Idaho; or

Publishers

•

some of the service is performed in Idaho and the base of

If you are in the business of publishing, selling, licensing or dis-

operations, or the place from which the service is directed or

tributing books, newspapers, magazines, periodicals, trade jour-

controlled, is not in any state in which some part of the ser-

nals or other printed material, include outer-jurisdictional prop-

vice is performed, but the individual’s residence is in Idaho.

erty in the property factor whether owned or rented if used in

your business. Outer-jurisdictional property includes such items

MODIFIED F

MODIFIED FA A A A A CT

CTORS FOR CER

ORS FOR CER

ORS FOR CERT T T T T AIN INDUSTRIES

AIN INDUSTRIES

as orbiting satellites and undersea transmission cables which

The following industries use special rules to compute the appor-

are not physically located in any particular state. The portion of

tionment factors. Examples of the computation of apportion-

outer-jurisdictional property attributable to Idaho is computed

ment factors are found in the applicable Idaho Administrative

based on the ratio of Idaho usage to usage everywhere.

Income Tax Rules.

The sales numerator includes gross receipts from the sale of

Airlines

printed materials delivered or shipped to a purchaser or sub-

If you are in the business of transporting passengers, freight or

scriber in Idaho. Gross receipts from the advertising and the

mail by air, your apportionment factor should reflect the move-

sale, rental or other use of customer lists are included as Idaho

ment of your transportation equipment and personnel. This is

sales as determined by a circulation factor.

done by including transportation revenue, property ready for

flight, and transportation payroll in the Idaho numerators based

If the purchaser or subscriber is the U.S. Government or you are

on the percentage of Idaho departures of aircraft weighted as to

not taxable in the state, the gross receipts are attributable to

the value of aircraft by type to the total departures similarly

Idaho if the printed material or other property is shipped from a

weighted.

business location in Idaho.

The value of nonflight property and nonflight payroll will be allo-

Broadcasters

cated to the state based on the general apportionment rules.

If you are in the business of conducting television or radio broad-

casts, either through a network or through an affiliated,

Carriers of Freight and Passengers

unaffilated or independent television or radio broadcasting sta-

Carriers of Freight and Passengers

If you are in the business of transporting passengers, freight, or

tion, your apportionment factor should exclude outer-jurisdic-

mail by motor carrier or rail, your apportionment factor should

tional, film and radio programming property. Outer-jurisdictional

reflect the movement of your transportation equipment and per-

property includes orbiting satellites and undersea transmission

sonnel. This is done by including the transportation revenue,

cables which are not physically located in any particular state.

property and payroll in the Idaho numerators based on the per-

Film programming means performances, events, or productions

centage of miles traveled in Idaho to miles traveled everywhere.

telecast, live or otherwise, on television. It includes news and

sporting events in the format of a motion picture, a video tape,

Other revenue, fixed property, and compensation of employees

or other medium. Radio programming means all performances,

assigned to fixed locations are included in the factors based on

events or productions broadcast live or otherwise on radio. It

the general apportionment rules. Per diem and mileage charges

includes commercial, education or artistic works, in the format

paid or received for the temporary use of railroad cars should

of an audio tape, disc or other medium.

not be included in the sales or property factors.

Audio or video cassettes, discs or similar medium containing

Contractors

film or radio programming which is intended for sale or rental for

You must use the same long-term contract accounting method

home viewing or listening is included in the property factor at

for Idaho reporting purposes that you used for federal reporting

original cost.

purposes.

The value of property located or used in Idaho for part of the

If the percentage of completion method is used, the following

taxable year is included in the Idaho property numerator based

special rules apply in addition to the general property, payroll,

on the ratio that the number of days the property is located or

and sales factor rules.

used in Idaho bears to the total number of days you owned or

rented the property during the tax year.

The property factor denominator includes the average value of

the taxpayer’s cost of construction in progress (including mate-

Idaho sales include advertising revenue from live television, film

rials and labor) to the extent the costs exceed progress billings.

or radio programming in release to or by television and radio

The portion of this amount attributable to construction projects

stations located in Idaho and receipts from live telecasts, films

in Idaho is included in the Idaho numerator. If progress billings

and radio programs based on the audience factor.

exceed construction costs, do not include any value in the prop-

erty factors for the taxpayer’s equity in the project.

The payroll factor includes residual and profit participation pay-

ments paid to employees, directors, actors, newscasters and

The sales factor includes only the portion of the gross contract

other individuals in a role of employee. Amounts paid to an

price which corresponds to the percentage of the entire con-

individual, corporation or other business entity for providing the

tract which was completed at the end of the tax year. For

services of directors, actors, newscasters and other talent for a

example, if the project was 30% complete at the end of the tax

live television broadcast, film or radio program are included if

year, 30% of the bid price should be included in the gross re-

such payments were at least 25% of total compensation paid

ceipts. Gross receipts from a construction project are attribut-

to employees, and that failure to include the amounts would not

able to Idaho if the construction is located in Idaho. Gross re-

fairly represent the extent of your business activity in Idaho.

ceipts from a construction project located partially in Idaho are

The portion of these amounts attributable to Idaho is determined

included in the numerator based on ratio of construction costs

according to the general apportionment rules.

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Instructions For Schedule 42 - Supplemental Schedule For Multistate/multinational Business - Idaho State Tax Commission Page 2

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