Special Apportionment Rules; All Tax Years; Pipeline Companies

342.01 In General . The regulation governs the apportionment of the income of a pipeline company that has income from sources both within and outside Nebraska. 342.02 Definitions. The following definitions are applicable to the terms used in the apportionment factor descriptions. 342.02A Pipeline company is any business entity engaged in the business of moving, conveying, or transporting any oil, gas, refined petroleum products, or any other substance through a pipeline for a consideration. 342.02B Revenue mile is transporting one barrel of oil, refined petroleum product, or other liquid; one thousand cubic feet of gas, or any other standard measure of a product, the distance of one mile for a consideration. 342.02C Transportation revenue is the gross receipts or sales derived from moving, conveying, or transporting oil, gas, refined petroleum products, or any other substance through a pipeline for a consideration. 342.03 Sales Factor . 342.03A Numerator. The gross receipts of the taxpayer, other than transportation revenue, are included in the sales factor numerator in accordance with Reg-24-301 through Reg-24-340. Transportation revenue must be included in the sales factor numerator on the basis of the ratio of the revenue miles in this state to the total revenue miles. 342.03B Denominator. The denominator is all sales everywhere, calculated in accordance with Reg-24-301 through Reg-24-340. 342.04 Unitary Group. A pipeline company must be included in a unitary group with business entities which are not pipeline companies. 342.05 Records. The taxpayer must maintain the records necessary to identify total revenue miles and revenue miles by state. These records are subject to review by the Department. (Neb. Rev. Stat. § 77-2734.15. December 27, 2015.)