State Taxation of Transportation, Telecommunications, and Energy Companies analyzes property taxes on the transportation, telecommunications, and energy industries; state income taxes on the industries; sales taxes on telecommunications services; and federal statutory restrictions on state and local taxation of the industries.Written by James A. Amdur, Esq., this Portfolio includes a brief summary of the regulatory process before offering reviews and detailed analysis on such topics as: 

• the general valuation approach to property taxes as well as the cost, income, and market approaches,
• the constitutional and statutory requirements for income taxes as well as the formula apportionment and the division of income for transportation companies, telecommunications companies, and energy companies, and
• the requirements for sales taxes on telecommunication services,including a state-by-state summary of the states' conformity to the Mobile Telecommunications Sourcing Act. 

This Portfolio examines the federal court jurisdiction, assessment ratio discrimination, collection of tax on discriminatory assessment, tax rate, and other jurisdictional and procedural matters of the Federal Anti-Discrimination Statutes.  It also discusses other federal statutes regarding airline taxation, motor carrier taxation, electricity taxation, and satellite service taxation. 

State Taxation of Transportation, Telecommunications, and Energy Companies includes more than a dozen worksheets, including numerous rules from the Multistate Tax Commission Regulations and excerpts from the Railroad Revitalization and Regulatory Reform Act of 1976, the Motor Carrier Act of 1980, and the Airport and Airway Improvement Act of 1982.

State Taxation of Transportation, Telecommunications, and Energy Companies allows you to benefit from: 

• Hundreds of hours of original research on specific tax planning topics from leading practitioners in this area.
• Invaluable practice documents including tables, charts and lists.
• Plain-English guidance from world-class experts.
• Real-world and in-depth analysis that lets you explore various options.
• Time-saving access to relevant sections of tax laws, regulations, court cases, IRS documents and more.
• Alternative approaches to both common and unique tax scenarios.

This Portfolio is part of the Premier State Tax Library, a comprehensive series, which covers major state tax transactions and issues with expert, in-depth analysis, and offers commentary on a wide range of multi-state and state-specific taxation topics, including Sales and Use, Corporate Income, Individual Income, Property, Gross Receipts, Limitations on States' Authorities to Tax, Credits and Incentives, Electronic Commerce, Mergers and Acquisitions, Procedure and Administration, Special Industries, and more.

Detailed Analysis

1810.01. INTRODUCTION

1810.02. PROPERTY TAXES

A. Statutes

1. In General

2. Local Assessments

3. Central Assessments

4. Centrally Assessed Companies

a. Telecommunications Companies

b. Energy Companies

c. Airlines

5. Unit Method

B. Unitary Assessments

1. Procedure

2. Constitutional Requirements

a. Nexus

b. Fair Apportionment

c. Equality and Uniformity

3. Property Included in Unit

a. Property Owned and Used

b. Property Used But Not Owned

c. Property Not in Service

d. Taxable Intangibles

4. Property Excluded from Unit

a. Separately Assessed Property

b. Tax-Exempt Tangible Property

c. Tax-Exempt Intangibles

C. Valuation Approaches - In General

D. Cost Approach

1. In General

2. As Value Indicator

a. Historical Cost

b. Reproduction and Replacement Cost

3. As Mandated Method

4. Cost Computation

a. Methods

b. Costs Included

5. Depreciation

a. Elements

b. Computation

6. Obsolescence

a. Excess Capital Cost

b. Excess Operating Cost

c. Accumulated Deferred Income Taxes

d. Income Shortfall

e. Loss of Tax Benefits

f. Adverse Market Conditions

E. Income Approach

1. In General

2. Yield Capitalization (Perpetuity)

a. In General

b. Amount Capitalized

c. Capitalization Rate

3. Yield Capitalization (Limited Life)

4. Direct Capitalization

a. In General

b. Amount Capitalized

c. Capitalization Rate

5. Consistency Between Income and Capitalization Rate

6. Relevance of Strategic Business Plans

7. Subtractions

F. Market Approach

1. In General

2. Stock Value

a. In General

b. When Taxpayer is a Subsidiary

3. Debt Value

a. Debt Securities

b. Other Liabilities

4. Subtractions

G. Additions to Value Indicators

1. Leased Operating Property

2. Construction Work in Progress

H. Correlation

1. Weighting of Value Indicators

2. Appraisal Judgment

I. Interstate Allocation

J. Intrastate Apportionment

K. Equalization

1. In General

2. Classification Systems

a. Definition of Class

b. Equality and Uniformity

3. De Facto Inequality

4. Effect of Federal Statutes

1810.03. INCOME TAXES

Introductory Material

A. State Jurisdiction to Tax

1. Constitutional and Statutory Requirements

2. Railroad Car Companies

3. Motor Carriers

B. Classification of Taxpayer

C. Division of Income

1. Constitutional Requirements

2. Formula Apportionment

a. In General

3. Transportation Companies

a. In General

b. Railroads

c. Airlines

d. Motor Carriers

4. Telecommunications Companies

a. Property Factor - Outer-Jurisdictional Property

b. Sales Factor

5. Energy Companies

a. Gas Pipeline Companies

b. Property Factor - Construction Work in Progress

6. Separate Accounting

1810.04. SALES TAXES ON TELECOMMUNICATIONS SERVICES

Introductory Material

A. In General

B. Imposition of Tax

1. In General

2. Intrastate Telecommunications

3. Interstate Telecommunications

a. In General

b. Service Address

c. Constitutionality of Tax

4. International Telecommunications

5. Measure of Tax

C. Taxability of Specific Types of Services

1. Statutory Definitions

2. Telephone Services

a. Local Telephone Service

b. Long Distance Telephone Service

c. Wide Area Telephone Service

d. Coin-Operated Telephone Service

e. Prepaid Telephone Calling Cards

f. Telephone Answering Service

3. Private Line Services

a. Taxability

b. Taxable Amounts; Service Address

4. Mobile and Wireless Services

a. Taxability

b. Service Address

5. Information and Data Transmission Services

a. Transmission Services

b. "Enhanced" or "Value Added" Services

c. Other Data Processing Services

d. Internet Access

e."900" and Similar Services

6. Television Services

a. Cable and Other Pay Television Services

b. Television Transmission Services

7. Ancillary Services

8. Customer Equipment

a. Rentals

b. Installation and Maintenance

D. Exclusions From Tax Base

1. Taxes and Surcharges

2. Bad Debts

3. Services to Affiliated Entities

4. Sales for Resale

a. Carrier Access Charges

b. Other Sales for Resale

5. Sales to Governments and Universities

a. Vendee Statutes

b. Vendor Statutes

6. Receipts Otherwise Taxed

E. Credit for Tax Paid to Other State

F. Collection and Payment

1. Vendee Statute

2. Vendor Statute

3. Retailer

G. The Mobile Telecommunications Sourcing Act

1. Background

2. Provisions of the Act

a. Sourcing Rules

b. Electronic Database and Hold Harmless Provisions

c. Applicable Taxes

d. Bundling

3. Constitutional Considerations

4. State Conformity to the Mobile Telecommunications Sourcing Act

a. Implementing the Mobile Telecommunications Sourcing Act

b. Summary of States' Conformity to the Mobile Telecommunications Sourcing Act

(1) Alabama

(2) Alaska

(3) Arizona

(4) Arkansas

(5) California

(6) Colorado

(7) Connecticut

(8) Delaware

(9) District of Columbia

(10) Florida

(11) Georgia

(12) Hawaii

(13) Idaho

(14) Illinois

(15) Indiana

(16) Iowa

(17) Kansas

(18) Kentucky

(19) Louisiana

(20) Maine

(21) Maryland

(22) Massachusetts

(23) Michigan

(24) Minnesota

(25) Mississippi

(26) Missouri

(27) Montana

(28) Nebraska

(29) Nevada

(30) New Hampshire

(31) New Jersey

(32) New Mexico

(33) New York

(34) North Carolina

(35) North Dakota

(36) Ohio

(37) Oklahoma

(38) Oregon

(39) Pennsylvania

(40) Rhode Island

(41) South Carolina

(42) South Dakota

(43) Tennessee

(44) Texas

(45) Utah

(46) Vermont

(47) Virginia

(48) Washington

(49) West Virginia

(50) Wisconsin

(51) Wyoming

1810.05. FEDERAL ANTI-DISCRIMINATION STATUTES

A. Statutes

B. Federal Court Jurisdiction

1. 4-R Act and Motor Carrier Act

a. General Federal Court Jurisdictional Requirements

b. Tax Injunction Act

c. Eleventh Amendment

d. Judicial Abstention

2. Airport Act

C. Assessment Ratio Discrimination

1. Prohibited Action

2. Burden of Proof

3. Assessment Ratio of Transportation Property

a. Transportation Property

b. Assessed Value

c. True Market Value

4. Assessment Ratio of Other Commercial and Industrial Property

a. Commercial and Industrial Property

b. Assessment Jurisdiction

c. Assessed Value

d. True Market Value

e. Assessment Ratio

5. Comparison of Assessment Ratios

6. Threshold Requirement for Relief

D. Levy or Collection of Tax on Discriminatory Assessment

E. Tax Rate Discrimination

F. Exception for "In Lieu Tax" on Airline

G. Other Discriminatory Railroad Taxation

1. Prohibited Action

2. Taxes

a. Non-Property Taxes

b. Property Taxes

c. Other Governmental Fees and Charges

3. Discrimination

a. In General

b. Exemptions from Generally Applicable Taxes

c. Taxes "Singling Out" Railroads

d. Competing Modes of Transportations

e. Effect of Overall Tax Burdens

f. De Minimis Disparities

H. Other Jurisdictional and Procedural Matters

1. Standing to Sue

a. Railroad Car Companies

b. Airlines

2. Timeliness of Complaint

3. Referral to Special Master

4. Relief Granted

a. Injunction

b. Tax Refund

5. Liability For Interest

1810.06. OTHER FEDERAL STATUTES

A. Airline Taxation

1. Anti-Head Tax Act

a. In General

b. Taxes on Transportation of Persons

c. Sales and Gross Receipts Taxes

d. Airport User Fees

e. Private Right of Action

2. Taxation of Overflight Activities

3. Taxation of Airport Businesses

B. Motor Carrier Taxation

C. Electricity Taxation

D. Satellite Service Taxation

Working Papers

Item Description Sheet

Worksheet 1 Railroad Revitalization and Regulatory Reform Act of 1976-  Excerpt P.L. 94-210

Worksheet 2 Motor Carrier Act of 1980 - Excerpt P.L. 96-296

Worksheet 3 Airport and Airway Improvement Act of 1982 - Excerpt P.L. 97-248

Worksheet 4 49 U.S.C. § 1513(a), (b) and (f) - AIRLINES Sec. 1513. State taxation of air commerce

Worksheet 5 15 U.S.C. § 391 - ELECTRICITY

Worksheet 6 MULTISTATE TAX COMMISSION REPORT OF THE HEARING OFFICER ON THE PROPOSED UNIFORM PRINCIPLES GOVERNING STATE TRANSACTIONAL TAXATION OF TELECOMMUNICATIONS

Worksheet 7 Multistate Tax Commission Regulations § IV.18.(e) Apportionment Special Rules: Railroads

Worksheet 8 Multistate Tax Commission Regulation § IV.18.(f) Apportionment Special Rules: Airlines

Worksheet 9 Multistate Tax Commission Regulation § IV.18.(g) Apportionment Special Rules: Trucking Companies

Worksheet 10 Multistate Tax Commission Regulation § IV.18.(h) Apportionment Special Rules: Television and Radio Broadcasting

Worksheet 11 Multistate Tax Commission Regulation § IV.18.(j) Apportionment Special Rules: Publishing

Worksheet 12 Uniform Principles Governing State Transactional Taxation of Telecommunications-Vendee Version

Worksheet 13 Uniform Principles Governing State Transactional Taxation of Telecommunications-Vendor Version

Worksheet 14 Goldberg v. Sweet

Opinion

Worksheet 15 Federal Mobile Telecommunications Sourcing Act (4 U.S.C. § § 116-126)

Worksheet 16 COST Decries Class Action Litigation in State Tax Disputes, Says Cert. Denied in AT& T v. Allen Opens Door to More Suits (11 Multistate Tax Report 405, July 23, 2004)

Bibliography

Bibliography