A.
General Allocation Formula. Every corporation subject to the corporation
franchise tax must determine the extent to which its entire franchise taxable
base is employed in the exercise of its franchise within this state. For all
taxpayers other than those in the business of manufacturing, the extent of such
use of total taxable base in the state is determined by multiplying the total
taxable capital by the ratio obtained through the arithmetical average of the
ratio of net sales made to customers in the regular course of business and
other revenues attributable to Louisiana to total net sales made to customers
in the regular course of business and total other revenues, and the ratio that
the value of all of the taxpayer's property and assets situated or used by the
taxpayer in Louisiana bears to all of the taxpayer's property and assets
wherever situated or used. For taxpayers in the business of manufacturing, the
extent of such use of total taxable base in the state is determined by
multiplying the total taxable capital by the ratio of net sales made to
customers in the regular course of business and other revenues attributable to
Louisiana to total net sales made to customers in the regular course of
business and total other revenues.
1. Net
Sales and Other Revenue. Net sales to be combined with other revenue in
determining both the numerator and denominator of the revenue ratio for
purposes of calculating the portion of the taxpayer's total taxable capital to
be allocated to Louisiana are only those sales made to customers in the regular
course of the taxpayer's business. In transactions in which raw materials,
products, or merchandise are transferred to another party at one location in
exchange for raw materials, products, or merchandise at another location in
agreements requiring the subsequent replacement with similar property on a
routine, continuing, or repeated basis, all such transactions shall be
carefully analyzed to determine whether they constitute sales made to customers
that should be included in the revenue ratio or whether they constitute
exchanges that are not sales and should be excluded from the revenue ratio.
Sales of scrap materials and by-products are construed to meet the requirements
for inclusion in the revenue ratio. Sales made other than to customers, such
as, but not limited to, sales of stocks, bonds, futures, options, derivatives,
and other evidence of investment on the open market, regardless of the
frequency or volume of those sales, shall not be included in the revenue ratio.
Similarly, revenues and/or gains on the sale of property other than stock in
trade shall not be included in the revenue ratio since they generally do not
meet the specific requirements that only sales made to customers in the regular
course of business of the taxpayer should be included. Whenever a transaction
is not a sale to customers in the regular course of business, the amount does
not constitute other revenue so as to qualify for inclusion in either the
numerator or the denominator of the allocation ratio.
a. Sales attributable to Louisiana are those
sales where the goods, merchandise, or property are received in Louisiana by
the purchaser. Where goods are delivered into Louisiana by public carrier, or
by other means of transportation, including transportation by the purchaser,
the place at which the goods are ultimately received after all transportation
has been completed shall be considered as the place at which the goods are
received by the purchaser. The transportation in question is the initial
transportation relating to the sale by the taxpayer.
i. Transportation by Taxpayer or by Public
Carrier. Where the goods are delivered by the taxpayer in his own equipment, it
is presumed that such transportation relates to the sale. Where the goods are
delivered by a common or contract carrier, whether shipped F.O.B. shipping
point and whether the carrier be a pipeline, trucking line, railroad, airline,
or some other type of carrier, the place where the goods are ultimately
received by the purchaser after the transportation incident to the sale has
ended is deemed to be the place where the goods are received by the
purchaser.
ii. Transportation by
Purchaser
(a). Where the transportation
involved is transportation by the purchaser, it is recognized that it is more
difficult to determine whether or not the transportation is related to the sale
by the taxpayer. To be related to the initial sale, the transportation should
be commenced immediately. However, before a lapse of time is conclusive,
consideration must be given to the nature and character of the goods purchased,
the availability of transportation, and other pertinent economic and natural
circumstances occurring at the time.
(b). The intent of the parties to the sale
must also be considered. The intent and purpose of the purchaser may be
determined directly, or by an evaluation of the nature and scope of his
operation, customs of the trade, customary activities of the purchaser, and all
pertinent actions and words of the purchaser at the time of the sale.
(c). In order for the transportation by the
purchaser to be related to the initial sale by the taxpayer to the purchaser,
such transportation must be generally the same in nature and scope as that
performed by the vendor or by a carrier. There is no difference between a case
where a taxpayer in Houston ships F.O.B. Houston to a purchaser in Baton Rouge,
by common carrier, and a case where all facts are the same except that the
purchaser goes to Houston in his own vehicle and returns with the goods to
Baton Rouge.
iii.
Transportation of Natural Resources by a Public Carrier Pipeline. Generally,
transportation by public carrier pipelines is accorded the same treatment as
transportation by any other type of public carrier. However, because of the
nature and character of the property, the type of carrier, and the customs of
the trade, the natural resources in the pipeline may become intermixed with
other natural resources in the pipeline and lose their particular identity.
Where delivery is made to a purchaser in more than one state, or to different
purchasers in different states, peculiar problems of attribution arise. In all
cases possible, attribution will be made in accordance with the rules
applicable to all public carrier transportation, that is, where it can be shown
that a taxpayer in one state sold a quantity of crude oil to a purchaser in
another state, and the oil was transported to the purchaser by public carrier
pipeline, the sale will be attributed to the state where the crude oil is
received by the purchaser, even though the crude oil delivered might not be the
identical oil sold because of commingling in the pipeline. Custom of the trade
indicates the purchaser buys a quantity of oil of certain quality, but not any
specific oil.
iv. Storage of
Property after Purchase
(a). In determining
the place of receipt by the purchaser after the initial transportation has
ended, peculiar problems may be created by the storage of the property
purchased immediately upon purchase and at a place other than the place of
intended use. The primary problem created by such storage is in determining
whether or not the storage is of a temporary nature.
(b). In cases where the storage is permanent
or semipermanent, delivery to the place of storage concludes the initial
transportation, and the sale is attributed to the place of storage. However,
where the storage is of a temporary nature, such as that necessitated by lack
of transportation or by change from one means of transportation to another, or
by natural conditions, the place of such storage is of no significance.
b. Revenue
from Air Transportation. All revenues derived from the transportation of cargo
or passengers by air shall be attributed within and without this state based on
the point at which the cargo shipment or passenger journey
originates.
c. Revenue from
Transportation Other Than Air Travel. Revenue attributable to Louisiana from
transportation other than air includes all such revenue derived entirely from
sources within Louisiana plus a portion of revenue from transportation
performed partly within and partly without Louisiana, based upon the ratio of
the number of units of transportation service performed in Louisiana to the
total of such units. Revenue from transportation exclusively without Louisiana
shall not be included in the revenue attributed to Louisiana. Revenue
attributable to Louisiana shall be computed separately for each of the four
classes enumerated below.
i. A unit of
transportation shall consist of the following:
(a). in the case of the transportation of
passengers, the transportation of one passenger a distance of 1 mile;
(b). in the case of the transportation of
liquid commodities, including petroleum or related products, the transportation
of one barrel of the commodities a distance of 1 mile;
(c). in the case of the transportation of
property other than liquids, the transportation of 1 ton of the property a
distance of 1 mile;
(d). in the
case of the transportation of natural gas, the transportation of 1 MCF or 1
MBTU a distance of 1 mile.
ii. In any case where another method would
more clearly reflect the gross apportionable income attributable to Louisiana,
or where the above information is not readily available from the taxpayer's
records, the secretary, in his discretion, may permit or require the use of any
method deemed reasonable by him.
iii. Example: ABC Corporation is in the
business of transporting natural gas as a common carrier. During the year 2005,
ABC entered into five transactions. In the first transaction 1 million MMCF was
transported from Texas, through Louisiana, to Mississippi. The total distance
transported was 500 miles, of which 200 miles was in Louisiana. The charge for
the transportation was $250,000.00. In the second transaction 1 million MMCF
was transported from one point in Louisiana to another point in Louisiana, a
distance of 150 miles, for a charge of $150,000.00. In the third transaction 1
million MMCF was transported from one point in Texas to another point in Texas,
a distance of 500 miles, for a charge of $250,000.00. In the fourth transaction
1 million MMCF was transported from a point in Louisiana to a point in another
state for a charge of $500,000.00. The total distance transported was 1,000
miles, of which 100 miles were in Louisiana. In the fifth transaction 1 million
MMCF was transported from a point in Louisiana to a point in another state for
a charge of $250,000.00. The distance transported was 500 miles, of which 100
was in Louisiana. The portion of the gross apportionable income attributed to
Louisiana would be computed as follows:
Louisiana Amount
|
First Transaction - 200/500 x $250,000 =
|
$100,000
|
Second Transaction - entirely from Louisiana =
|
150,000
|
Third Transaction - neither entirely nor partially
in Louisiana
|
-0-
|
Fourth Transaction - 100/1,000 x $500,000 =
|
50,000
|
Fifth Transaction - 100/500 x $250,000 =
|
50,000
|
Louisiana Income from Transportation of Natural Gas
|
$350,000
|
d. Revenue from Services Other Than from
Transportation
i. For purposes of
R.S.
47:606(A), in addition to
any other revenue attributed to Louisiana, the following revenue from providing
telephone, telecommunications, and similar services shall be attributed to
Louisiana:
(a). revenue derived from charges
for providing telephone "access" from a location in this state. Access means
that a call can be made or received from a point within this state. An example
of this type of receipt is a monthly subscriber fee billed with reference to a
service address located in the state and without regard to actual
usage;
(b). revenue derived from
charges for unlimited calling privileges, if the charges are billed by
reference to a service address located in this state;
(c). revenue from intrastate telephone calls
or other telecommunications, except for mobile telecommunication services,
beginning and ending in Louisiana;
(d). revenue from interstate or international
telephone calls or other telecommunications, except for mobile
telecommunication services, either beginning or ending in Louisiana if the
service address charged for the call or telecommunication is located in
Louisiana, regardless of where the charges are billed or paid;
(e). revenue from mobile telecommunications
service:
(i). revenue from mobile
telecommunications services shall be attributed to the place of primary use,
which is the residential or primary business street address of the
customer;
(ii). if a customer
receives multiple services, such as multiple telephone numbers, the place of
primary use of each separate service shall determine where the revenue from
that service is attributed;
(iii).
revenue from mobile telecommunications services shall be attributed to
Louisiana if the place of primary use of the service is Louisiana.
(f). Definitions. For the purpose
of this Subparagraph, the following terms have the following meanings unless
the context clearly indicates otherwise.
(i).
Call-a specific telecommunications transmission.
(ii).
Customer-any person or
entity that contracts with a home service provider or the end user of the
mobile telecommunications service if the end user is not the person or entity
that contracts with the home service provider for mobile telecommunications
service.
(iii).
Home
Service Provider-the facilities-based carrier or reseller with which
the customer contracts for the provision of mobile telecommunications
services.
(iv).
Place of
Primary Use of Mobile Telecommunications Service-the street address
representative of where the customer's use of mobile telecommunications service
primarily occurs. This address must be within the licensed service area of the
home service provider and must be either the residential or the primary
business street address of the customer. The home service provider shall be
responsible for obtaining and maintaining the customer's place of primary use
as prescribed by
R.S.
47:301(14)(i)(ii)(bb)(XI).
(v).
Service Address-the
address where the telephone equipment is located and to which the telephone
number is assigned.
(vi).
Telecommunications-the electronic transmission, conveyance or
routing of voice, data, audio, video, or any other information or signals to a
point, or between or among points, by or through the use of any medium such as
wires, cables, satellite, microwave, electromagnetic wires, light waves or any
combination of those or similar media now in existence or that might be
devised, by telecommunications does not include the information content of any
such transmission.
(vii).
Telecommunication Service-providing telecommunications
including service provided by telecommunication service resellers, for a charge
and includes telephone service, telegraph service, paging service, personal
communication services and mobile or cellular telephone service, but does not
include electronic information service or Internet access service.
ii. Revenue derived
from services, other than from transportation, or telephone,
telecommunications, and similar services, shall be attributed to the state in
which the services are rendered. Services are rendered where they are received
by the customer.
iii. In any case
in which it can be shown that charges for services constitute a pure recovery
of the cost of performing the services and do not include a reasonable rate of
profit, amounts received in reimbursement of such costs shall not be construed
to be revenues received and shall be omitted from both the numerator and
denominator of the attribution ratio.
e. Rents and Royalties from Immovable or
Corporeal Movable Property
i. Rents and
royalties from immovable or corporeal movable property shall be attributed to
the state where the property is located at the time the revenue is derived,
which is construed to be the place at which the property is used resulting in
the rental payment. Rents, royalties, and other income from mineral leases,
royalty interests, oil payments, and other mineral interests shall be allocated
to the state or states in which the property subject to such interest is
located.
ii. In the case of movable
property which is used in more than one state or when the lessor has no
knowledge of where the property is located at all times, application of the
general rule for attributing the revenue from rental of the property may be
sufficiently difficult so as to require use of a formula or formulas to
determine the place of use for which the rents were paid. The specific formula
to be used must be determined by reference to the basis on which rents are
charged, the basis of which is usually set forth in the rental agreement. In
those cases in which time of possession in the hands of the lessee is the only
consideration in calculating rental charges, time used by the lessee in each
state will be used as the basis for attributing the revenue to each state.
Where miles traveled is the basis for the rental charge, revenue shall be
attributed on that basis; where ton miles or traffic density in combination
with miles traveled is the basis for the rental charges, revenue will be
attributed to each state on that basis. In the case of drilling equipment where
rentals are based on the number of feet drilled, income will be attributed to
each state based on the ratio of the number of feet drilled within that state
to the total number of feet drilled in all states by the rented equipment
during the taxable period covered by the rental agreement.
f. Interest on Customers' Notes and Accounts
i. Interest on customers' notes and accounts
can generally be associated directly with the specific credit instrument or
account upon which the interest is paid and shall be attributed to the state at
which the goods were received by the purchaser or services rendered. Interest
is construed to include all charges made for the extension of credit, such as
finance charges and carrying charges.
ii. When the records of the taxpayer are not
sufficiently detailed so as to enable direct attribution of the revenue,
interest, as defined herein, shall be attributed to each state on the basis of
a formula or formulas which give due consideration to credit sales in the
various states, outstanding customer accounts and notes receivable, and
variances in the rates of interest charged or permitted to be charged in each
of the states where the taxpayer makes credit sales.
g. Other Interest and Dividends
i. Interest, other than on customers' notes
and accounts, and dividends shall be attributed to the state in which the
securities producing such revenue have their situs, which shall be at the
business situs of such securities if they have been so used in connection with
the taxpayer's business as to acquire a business situs, or, in the absence of
such a business situs, shall be at the commercial domicile of the
taxpayer.
ii. Used in connection
with the taxpayer's business is construed to mean use of a continuing nature in
the regular course of business and does not include the mere holding of the
instrument at a location or the use of the property as security for credit.
Business situs must be established on the basis of facts, indicating precisely
the use to which the securities have been put and the manner in which the
taxpayer conducts its business.
iii. Commercial Domicile is in that state
where management decisions are implemented which is presumed to be the state
where the taxpayer conducts its principal business and thereby benefits from
public facilities and protection provided by that state. The location of board
of directors' meetings is not presumed to create commercial domicile at the
location.
iv. Interest and
dividends from a parent or subsidiary corporation shall be attributed as
provided in
R.S.
47:606(B) and the
regulations issued thereunder.
h. Royalties or Similar Revenue from the Use
of Patents, Trademarks, Secret Processes, and Other Similar Intangible Rights
i. Royalties or similar revenue received for
the use of patents, trademarks, secret processes, and other similar intangible
rights shall be attributed to the state or states in which such rights are used
by the licensee from whom the income is received.
ii. In those cases where the rights are used
by the licensee in more than one state, royalties and similar revenue will be
attributed to the states on the basis of a ratio which gives due consideration
to the proportion of use of the right by the licensee within each of the
states. When the royalty is based on a measurable unit of production, sales, or
other measurable unit, the attribution ratio shall be based on such units
within each state to the total of such units for which the royalties were
received. When the royalty or similar revenue is not based on measurable units,
the attribution ratio will be based on the relative amounts of income produced
by the licensee in each state or on such other ratio as will clearly reflect
the proportion of use of the rights by the licensee in each state.
i. Revenue from a Parent or
Subsidiary Corporation. Revenue from a parent or subsidiary corporation shall
be allocated as provided in
R.S.
47:606(B) and the
regulations issued thereunder.
j.
All Other Revenues
i. All revenues which are
not specifically described in §306. A.l.a-i shall be attributed within and
without Louisiana on the basis of such ratio or ratios as may be reasonably
applicable to the type of revenue and business involved.
ii. In the case of revenue from construction,
repairs, and similar services, generally, all of the work will be performed at
a specific geographical location and the total revenue, including all billings
by the taxpayer without regard to the method of reporting gain for purpose of
the income tax statutes, shall be attributed to the place where the work is
performed. In the case of contracts wherein a material part or parts of the
work may have been performed in another state, such as the design, engineering,
manufacture, fabrication, or preassembly of component parts, total revenue from
the specific elements will be attributed to the place at which that segment of
the work was performed on the basis of segregated charges contained in the
performance contract. In the absence of segregated charges in the contract,
revenues shall be allocated on the basis of a formula or formulas which give
due consideration to such factors as direct cost, time devoted to the separate
elements, and relative profitability of the specific function. Such ratios may
be based on estimates of costs compiled during calculation of bid amounts for
purposes of securing the contract in the absence of sufficient contract
segregation of the charges between functions or sufficient records necessary to
determine direct cost.
iii.
(a). Revenues from partnerships shall be
attributed within and without Louisiana based on the proportion of the
partnership's capital employed in Louisiana. The proportion of the
partnership's capital employed in Louisiana is the allocation ratio, also known
as the franchise tax apportionment ratio, that would be computed for the
partnership if the partnership were a corporation subject to franchise tax.
(b). Revenues from a partnership
are the partner's distributive share of partnership net income when the
partner's distributive share of partnership net income is a positive amount.
Losses from a partnership are not revenues from a partnership.
(c). Revenue from a partnership should be
revenue from the partnership as reflected on the taxpayer's books. However, if
there is no difference in the proportions of incomes, expenses, gains, losses,
credits and other items accruing to the taxpayer from the partnership for book
purposes and tax purposes the taxpayer may use tax basis revenue from a
partnership. Once a taxpayer uses either book basis revenue or tax basis
revenue, that basis must be used for all future tax
periods.
iv. The term
partnership includes a syndicate, group, pool, joint venture, limited liability
company, or other unincorporated organization through or by means of which any
business, financial operation, or venture is carried on.
2. Property and Assets.
For the purpose of calculating the ratio of the value of property situated or
used by a corporation in Louisiana to the value of all property wherever
situated, both tangible and intangible property must be considered. The minimum
value to be included in both the numerator and denominator is the value
recorded on the books of the taxpayer. Both the cost recorded on the books of
the corporation and the reserves applicable thereto are subject to examination
and revision by the secretary when such revision is found to be necessary in
order to reflect properly the extent to which capital of the corporation is
employed in the exercise of its charter; in no event, however, shall the
revision by the secretary to any asset value or applicable reserve result in a
net valuation which exceeds actual cost of the asset to the taxpayer. Assets
will be allocated as follows.
a. Cash on hand
shall be allocated to the state in which the cash is physically
located.
b. Cash in banks and
temporary cash investments shall be allocated to the state in which they have
their business situs if they have been so used as to have acquired a business
situs. In the absence of a business situs for such assets, cash in banks and
temporary cash investments shall be allocated to the state in which the
commercial domicile of the taxpayer is located.
c. Trade accounts and trade notes receivable
are construed to mean only those accounts and notes receivable resulting from
the sale of merchandise or the performance of services for customers in the
regular course of business of the taxpayer. Such accounts and notes shall be
allocated to the location at which the merchandise was delivered or at which
the services were performed resulting in the receivable. In the absence of
sufficient recorded detail upon which to base the allocation of specific
accounts and notes receivable to the various states, such accounts and notes
may, by agreement between the secretary and the corporation, be allocated to
the separate states based upon the ratio of credit sales within any particular
state to the total of all credit sales.
d. Investments in and advances to a parent or
subsidiary corporation shall be allocated as provided in
R.S.
47:606(B) and the
regulations issued thereunder.
e.
Notes and accounts receivable other than temporary cash investments, trade
notes and accounts, and advances to a parent or subsidiary, shall be allocated
to the state in which they have their business situs if they have been so used
as to have acquired a business situs. In the absence of a business situs for
such assets, notes and accounts receivable other than temporary cash
investments, trade notes and accounts, and advances to a parent or subsidiary
shall be allocated to the state in which the commercial domicile of the
taxpayer is located. See §306. A.1.g relative to business situs and commercial
domicile.
f. Stocks and bonds other
than temporary cash investments and investments in or advances to a parent or
subsidiary corporation shall be allocated to the state in which they have their
business situs if they have been so used as to have acquired a business situs.
In the absence of a business situs for such assets, stocks and bonds other than
temporary cash investments and advances to a parent or subsidiary corporation
shall be allocated to the state in which the commercial domicile of the
corporation is located.
g.
Immovable property and corporeal movable property which is used entirely within
a particular state shall be allocated to the state in which the property is
located. Movable property which is not limited in use to any particular state
shall be allocated among the states in which used on the basis of a ratio which
gives due consideration to the extent of use in each of the states. For the
purpose of determining the amount to be included in the numerator of the
property ratio with respect to corporeal movable property used both within and
without Louisiana, the following rules shall apply.
i. The value of diesel locomotives shall be
allocated to Louisiana on the basis of the ratio of diesel locomotive miles
traveled in Louisiana to total diesel locomotive miles.
ii. The value of other locomotives shall be
allocated to Louisiana on the basis of the ratio of other locomotive miles
traveled in Louisiana to total other locomotive miles.
iii. The value of freight train cars shall be
allocated to Louisiana on the basis of the ratio of freight car miles traveled
in Louisiana to total freight car miles.
iv. The value of railroad passenger cars
shall be allocated to Louisiana on the basis of the ratio of passenger car
miles traveled in Louisiana to total passenger car miles.
v. The value of passenger buses shall be
allocated to Louisiana on the basis of the ratio of passenger bus miles
traveled in Louisiana to total passenger bus miles.
vi. The value of diesel trucks shall be
allocated to Louisiana on the basis of the ratio of diesel truck miles traveled
in Louisiana to total diesel truck miles.
vii. The value of other trucks shall be
allocated to Louisiana on the basis of the ratio of other truck miles traveled
in Louisiana to total other truck miles.
viii. The value of trailers shall be
allocated to Louisiana on the basis of the ratio of trailer miles traveled in
Louisiana to total trailer miles.
ix. The value of towboats shall be allocated
to Louisiana on the basis of the ratio of towboat miles traveled in Louisiana
to total towboat miles. In the determination of Louisiana towboat miles,
one-half of the mileage of navigable rivers or streams bordering on both
Louisiana and another state shall be considered Louisiana miles.
x. The value of tugs shall be allocated to
Louisiana on the basis of the ratio of tug miles traveled in Louisiana to total
tug miles. In the determination of Louisiana tug miles, one-half of the mileage
of navigable rivers or streams bordering on both Louisiana and another state
shall be considered Louisiana miles.
xi. The value of barges shall be allocated to
Louisiana on the basis of the ratio of barge miles traveled in Louisiana to
total barge miles. In the determination of Louisiana barge miles, one-half of
the mileage of navigable rivers or streams bordering on both Louisiana and
another state shall be considered Louisiana miles.
xii. The value of work and miscellaneous
equipment shall be allocated to Louisiana in the following manner:
(a). in the case of a railroad, on the basis
of the ratio of track miles in Louisiana to total track miles;
(b). in the case of truck and bus
transportation, on the basis of the ratio of route miles operated in Louisiana
to total route miles; and
(c). in
the case of inland waterway transportation, on the basis of the ratio of bank
miles in Louisiana to total bank miles. In the determination of bank mileage of
navigable rivers or streams bordering on both Louisiana and another state,
one-half of such mileage shall be considered Louisiana miles.
xiii. The value of other floating
equipment shall be allocated to Louisiana on the basis of the ratio of
operating equipment miles within Louisiana to total operating equipment miles
for the particular equipment to be allocated. In the determination of Louisiana
operating equipment miles, one-half of the mileage of navigable rivers or
streams bordering on both Louisiana and another state shall be considered
Louisiana miles.
xiv. The value of
flight equipment shall be allocated to Louisiana on the basis of the ratio of
ton miles flown within Louisiana to total ton miles. For the purpose of
determining Louisiana ton miles, a passenger and his luggage shall be assigned
a weight factor of 1/10 of 1 ton.
xv. The value of inventories of merchandise
in transit shall be allocated to the state in which their delivery destination
is located in the absence of conclusive evidence to the contrary.
xvi. All other corporeal movable property
shall be allocated to Louisiana on the basis of such ratio or ratios as will
reasonably reflect the extent of their use within this state. In any case where
the information necessary to determine the prescribed ratio is not readily
available from the taxpayer's records, the secretary may require the allocation
of the value of the property on the basis of any method deemed reasonable by
the secretary.
h. All
other assets shall be allocated within or without Louisiana on such basis as
may be reasonably applicable to the particular asset and the type of business
involved. Investments in or advances to a partnership shall be attributed
within and without Louisiana based on the proportion of the partnership's
capital employed in Louisiana. The proportion of the partnership's capital
employed in Louisiana is the allocation ratio, also known as the franchise tax
apportionment ratio, that would be computed for the partnership if the
partnership were a corporation subject to franchise tax.