77-2734.14 Income tax; sales factor; how determined. - Nebraska Statutes

77-2734.14. Income tax; sales factor; how determined.(1) The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax period, and the denominator of which is the total sales everywhere during the tax period.(2) Sales of tangible personal property in this state include:(a) Property delivered or shipped to a purchaser, other than the United States Government, within this state regardless of the f.o.b. point or other conditions of the sale;(b) Property shipped from an office, store, warehouse, factory, or other place of storage in this state if (i) the purchaser is the United States Government or (ii) for all taxable years beginning or deemed to begin before January 1, 1995, under the Internal Revenue Code of 1986, as amended, the taxpayer is not taxable in the state of the purchaser;(c) For all taxable years beginning or deemed to begin on or after January 1, 1995, and before January 1, 1996, under the Internal Revenue Code of 1986, as amended, two-thirds of the property shipped from an office, store, warehouse, factory, or other place of storage in this state if the taxpayer is not taxable in the state of the purchaser; or(d) For all taxable years beginning or deemed to begin on or after January 1, 1996, but before January 1, 1997, under the Internal Revenue Code of 1986, as amended, one-third of the property shipped from an office, store, warehouse, factory, or other place of storage in this state if the taxpayer is not taxable in the state of the purchaser.(3) Sales, other than sales of tangible personal property, are in this state if:(a) The income-producing activity is performed in this state; or(b) The income-producing activity is performed both in and outside this state and a greater proportion of the income-producing activity is performed in this state than in any other state, based on costs of performance. SourceLaws 1984, LB 1124, § 17; Laws 1985, LB 273, § 58; Laws 1995, LB 559, § 1. AnnotationsFor purposes of this section, "sales of tangible personal property" include the acquisition of a license to use the physical embodiment of intellectual property. American Bus. Info. v. Egr, 264 Neb. 574, 650 N.W.2d 251 (2002).The delivery of online data electronically over telephone lines is the transmission of a tangible thing. American Bus. Info. v. Egr, 264 Neb. 574, 650 N.W.2d 251 (2002).