Oregon Tax Court Finds NBC Universal Subject to Special Interstate Broadcaster Income Tax Apportionment Rule

The Oregon Tax Court Aug. 17 found Taxpayers were subject to special rules for interstate broadcasters for corporate income tax purposes. Taxpayers, units of NBC Universal, filed a consolidated return, using the standard apportionment formula and sourced receipts using the cost of performance method. The Department of Revenue (DOR) adjusted Taxpayers’ liabilities in conformity with the state’s special “audience factor” apportionment rule for interstate broadcasters. Taxpayers challenged the DOR’s assessment, arguing they weren’t interstate broadcasters because they provided content to independent third parties and not to state residents directly. Both parties filed motions for summary judgment. The tax court found ...