TITLE: 830 CMR 63.38.8: Apportionment of Income of Pipeline Companies
REGULATORY HISTORY: Regulation promulgated December 30, 2005.
SUMMARY OF REGULATION: This Regulation provides an alternative apportionment formula for pipeline companies. This regulation, in particular:
requires a three factor apportionment formula, with no change to the current property and payroll factors under G.L. c. 63, § 38(c) and 830 CMR 63.38.1,
provides an alternative sales factor, based on "traffic units,"
defines sales factor as a fraction, whose numerator is the total number of traffic units in Massachusetts during the taxable year and whose denominator is the total number of traffic units everywhere during the taxable year,
defines the term "traffic unit" as a way to measure the movement of a specific volume of gas or other product over a specific distance within a pipeline system,
defines pipeline companies to include any entity that is engaged in the business of transporting mineral products, such as oil, gasoline, and natural gas.
REASON FOR CHANGE: Pursuant to authority granted the Commissioner by G.L. c. 63, § 38(j).
PREPARED BY: Massachusetts Department of Revenue
Rulings and Regulations Bureau
100 Cambridge Street, 7 th floor
Boston, Massachusetts 02114
(617) 626-3250
FAX: (617) 626-3290