§ 105-337. Apportionment of taxable values to this State. - North Carolina Statutes

§105‑337.  Apportionment of taxable values to this State.

With respect to any publicservice company operating both inside and outside this State, it shall be theduty of the Department of Revenue to apportion for taxation in this State afair and reasonable share of the value of the company as a system or itsrolling stock or flight equipment as appraised under the provisions of G.S. 105‑336.Thus, when the Department has determined true value in accordance with theprovisions of G.S. 105‑336(a) or G.S. 105‑336(b), it shallascertain the portion of the total value subject to taxation in this State byapplying property, business, and mileage factors thereto in accordance with theratio that the company's property, business, or mileage in this State bears toits total property, business, or mileage. In its discretion, the Department mayuse one or more of the factors listed in the preceding sentence in order toachieve a fair and accurate result in the apportionment of the value of theproperty of any public service company. As used in this section,

(1)        The term"business factor" means data that reflect the use of the company'sproperty, such as gross revenue, net income, tons of freight carried, revenueton miles, passenger miles, car miles, ground hours, and comparable data.

(2)        The term"mileage factor" means factual information as to the linear miles ofthe company's track, wire, lines, pipes, routes, and similar operational routesand factual information as to the miles traveled by the company's rolling stock.

(3)        The term"property factor" means investment in property; it may be eithergross or net investment or any other reasonable figure reflecting the company'sinvestment in property. (1939, c. 310, s. 1609; 1971, c. 806, s. 1; 1973, c.476, s. 193.)