South Dakota Administrative Rules
Title 20 - PUBLIC SAFETY
Article 20:10 - PUBLIC UTILITIES COMMISSION
Chapter 20:10:28 - Telecommunications separations procedures
Section 20:10:28:125 - Apportionment procedures for operating taxes
Current through Register Vol. 50, page 114, March 25, 2024
For apportionment purposes, the expenses in operating taxes, account 7200, are segregated into operating federal, state, and local income taxes and all other operating taxes.
Operating federal, state, and local income taxes are apportioned among the operations based on the approximate net taxable income, positive or negative, applicable to each of the operations. The approximate net taxable income from each of the operations is the summation of the following amounts apportioned to each operation using the procedures in this chapter:
(1) Operating revenues;
(2) Less operating expenses;
(3) Less operating taxes except the net income tax being apportioned and except any other tax not treated as a deductible item in the determination of taxable net income for this purpose;
(4) Less operating fixed charges.
The amount of fixed charges attributable to the operations is obtained by subtracting the tax component, positive or negative, attributable to other than the operating fixed charges. For example, fixed charges on nonoperating investments are that proportion of total fixed charges which nonoperating net investments are of total operating and nonoperating net investments. Operating fixed charges, including interest on rural telephone bank stock, are apportioned among the operations based on the separation of the cost of telecommunications plant less applicable reserves.
Other operating taxes are directly assigned to the applicable operation if possible. If direct assignment is not feasible, these expenses are apportioned among the operations based on the separation of the cost of telecommunications plant in service, account 2001.
General Authority: SDCL 49-1-11, 49-31-5, 49-31-18.
Law Implemented: SDCL 49-31-18.
Operating taxes, 47 C.F.R. § 32.7200 (1991); Apportionment procedures, 47 C.F.R. § 36.412(a)(b)(c) (1991).
