Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 25 - Business Corporation Tax
Part 9 - Apportionment of Net Income (280-RICR-20-25-9)
Section 280-RICR-20-25-9.11 - Special Apportionment Formulas - 2015 and Thereafter

1. For tax years beginning on or after January 1, 2015, taxpayers deriving income from sources both within and outside of this state, or engaging in any activities or transactions both within and outside of this state for the purpose of profit or gain, shall generally apportion income according to the manner prescribed in § 9.8 of this Part, using single sales factor apportionment and the principle of market-based sourcing. Notwithstanding this general rule, certain categories of taxpayers or members in combined groups listed below remain eligible to apportion income to Rhode Island according to modified formulas of apportionment, as set forth in § 9.11(B)(G) of this Part:

2. In all such cases, taxpayers and combined group members eligible to apportion income according to a modified formula shall remain obligated to comply with Rhode Island's mandatory unitary combined reporting regime. When a taxpayer or member in a combined group that is categorized in §§ 9.11(A)(1)(a) through (f) of this Part is a member in a combined group with other categories of taxpayers (whether such categories of taxpayers are listed in this Regulation or not), the modified formula used for determining the portion of the sales factor of the taxpayer or member categorized in §§ 9.11(A)(1)(a) through (f) of this Part, as set forth in §§ 9.11(B) through (G) of this Part, shall not apply to the combined group as a whole or to members in the combined group that are categorized differently.

1. To arrive at a determination of the share of net income attributable to Rhode Island for a motor carrier, the motor carrier's net income is multiplied by the motor carrier's apportionment percentage. The apportionment percentage is determined as a fraction, the numerator of which is the motor carrier's total Rhode Island sales, and the denominator of which is the motor carrier's total worldwide sales.

2. A motor carrier's Rhode Island sales consist of the average of the inbound/outbound Rhode Island receipts plus all other receipts attributable to Rhode Island.

1. To arrive at a determination of the share of net income attributable to Rhode Island for an airline, passenger revenue and freight revenue shall be allocated to Rhode Island based on the ratio of departures of flight aircraft, by type, from locations in this state compared to total departures everywhere, multiplied by total passenger revenue everywhere. All other receipts attributable to Rhode Island shall also be included in the numerator.

1. The method for determining the share of net income attributable to Rhode Island for any taxpayer located within the state which sells management, distribution or administration services (including without limitations, transfer agent, fund accounting, custody and other similar or related services) to or on behalf of a regulated investment company (as defined in the Internal Revenue Code of 1986, as amended) is the same as the method set forth in § 9.10(G)(1) of this Part.

2. The method for determining the share of net income attributable to Rhode Island for any taxpayer which provides securities brokerage services and which operates within the state is the same as the method set forth in § 9.10(G)(2) of this Part.

1. The method for determining the share of net income attributable to Rhode Island for any banking institution whose business activities are taxable within and outside of this state and whose activities are limited to those described in Section 2(c)(2)(F) of the Bank Holding Company Act (12 U.S.C. § 1841(c)(2)(F)) is the same as the method set forth in § 9.10(H)(1) of this Part.

1. The method for determining the share of net income attributable to Rhode Island for any taxpayer located within the state that sells management, distribution or administration services, including without limitations, transfer agent, fund accounting, custody and other similar or related services to or on behalf of an employee retirement plan or pension plan is the same as the method set forth in § 9.10(I)(1) of this Part.

1. Regarding qualified taxpayers located within the state which sell international investment management services to non-U.S. persons or non-U.S. investment funds, such taxpayers shall determine net income in accordance with the provisions of § 9.10(J) of this Part.