As used in sections 77-2734.01
to 77-2734.15 , unless the context otherwise requires:
(1) Annual
average amortized loan balance means the total of the ending monthly values
in the tax year divided by the number of months in the tax year;
(2) Application
service means computer-based services provided to customers over a network
for a fee without selling, renting, leasing, licensing, or otherwise transferring
computer software. Application service includes, but is not limited to, software
as a service, platform as a service, or infrastructure as a service;
(3) Billing
address means the location indicated in the books and records of the taxpayer
as the address of record where the bill relating to the customer's account
is mailed;
(4) Borrower located in this state means:
(a) A borrower who is
engaged in a trade or business in this state; or
(b) A borrower whose billing
address is in this state, but is not engaged in a trade or business in this
state;
(5) Buyer includes a buyer, licensee, user, or person providing
consideration for the use of an item or service;
(6) Commercial domicile means the
principal place from which the trade or business of the taxpayer is directed
or managed;
(7) Communications
company means any entity that:
(a) Is:
(i) A telecommunications company as defined
in section 86-119 that provides a telecommunications service as defined in
section 86-121 or provides broadband, Internet, or video services as defined
in section 86-593 ;
(ii) A communications company that provides the electronic transmission,
conveyance, or routing of voice, data, audio, video, or any other information
or signals to a point, or between or among points, and includes such transmission,
conveyance, or routing in which computer processing applications are used
to act on the form, code, or protocol of the content for purposes of transmission,
conveyance, or routing without regard to whether such service is referred
to as a voice over Internet protocol service or is classified by the Federal
Communications Commission as enhanced or value added. The company may also
provide video programming provided by, or generally considered comparable
to programming provided by, a television broadcast station, regardless of
the medium, including the furnishing of transmission, conveyance, and routing
of such services by the programming service provider. Video programming includes,
but is not limited to, cable service as defined in 47 U.S.C. 522 and video
programming services delivered by providers of commercial mobile radio service,
as defined in 47 C.F.R. 20.3; or
(iii) A broadcast company that provides
an over-the-air broadcast radio station or over-the-air broadcast television
station; and
(b) Owns, operates, manages, or controls any plant or equipment
used to furnish telecommunications service, communication services, broadband
services, Internet service, or broadcast services directly or indirectly to
the general public at large and derives at least seventy percent of its gross
sales for the current taxable year from the provision of these services. For
purposes of the seventy-percent test, gross sales does not include interest,
dividends, rents, royalties, capital gains, or ordinary gains from asset dispositions,
other than in the normal course of business;
(8) Compensation means wages,
salaries, commissions, and any other form of remuneration paid to employees
for personal services;
(9) Corporate taxpayer means any corporation that is not a part of
a unitary business or the part of a unitary business, whether it is one or
more corporations, that is doing business in this state. Corporate taxpayer does not include any corporation that has a
valid election under subchapter S of the Internal Revenue Code or any financial
institution as defined in section 77-3801 ;
(10) Corporation means all corporations and all other entities
that are taxed as corporations under the Internal Revenue Code;
(11) Credit
card means a credit card, debit card, purchase card, charge card, and travel
or entertainment card;
(12) Doing
business in this state means the
exercise of the corporation's franchise in this state or the conduct of operations
in this state that exceed the limitations provided in 15 U.S.C. 381 on a state
imposing an income tax;
(13) Federal taxable income means the corporate taxpayer's federal taxable
income as reported to the Internal Revenue Service or as subsequently changed
or amended. Except as provided in subsection (5) or (6) of section 77-2716 ,
no adjustment shall be allowed for a change from any election made or the
method used in computing federal taxable income. An election to file a federal
consolidated return shall not require the inclusion in any unitary group of
a corporation that is not a part of the unitary business;
(14) Intangible
property means all personal property which is not tangible personal property
and includes, but is not limited to, patents, copyrights, trademarks, trade
names, service names, franchises, licenses, royalties, processes, techniques,
formulas, and technical know-how but excludes money;
(15) Loan means any extension
of credit resulting from direct negotiations between the taxpayer and its
customer or the purchase, in whole or in part, of an extension of credit from
another person. Loan includes participations, syndications, and leases treated
as loans for federal income tax purposes. Loan does not include properties
treated as loans under section 595 of the Internal Revenue Code prior to its
repeal by Public Law 104-188, futures or forward contracts, options, notional
principal contracts such as swaps, credit card receivables, including purchased
credit card relationships, noninterest bearing balances due from depository
institutions, cash items in the process of collection, federal funds sold,
securities purchased under agreements to resell, assets held in a trading
account, securities, interests in a real estate mortgage investment conduit
or other mortgage-backed or asset-backed security, and other similar items;
(16) Loan secured
by real property means a loan or other obligation which, at the time the original
loan or obligation was incurred or during the current taxable year, was secured
by real property. A loan secured by real property includes an installment
sales contract for real property;
(17) Loan secured by tangible personal property
means a loan or other obligation which, at the time the original loan or obligation
was incurred or during the current taxable year, was secured by tangible personal
property. A loan secured by tangible personal property includes an installment
sales contract for tangible personal property;
(18) Loan servicing fee
includes (a) fees or charges for originating and processing loan applications,
including, but not limited to, prepaid interest and loan discounts, (b) fees
or charges for collecting, tracking, and accounting for loan payments received,
and (c) gross receipts from the sale of loan servicing rights;
(19) Participation
means an extension of credit in which an undivided ownership interest is held
on a pro rata basis in a single loan or pool of loans and related collateral;
(20) Sales means all
gross receipts of the taxpayer,
except:
(a) Income
from discharge of indebtedness;
(b) Amounts received from hedging transactions
involving intangible assets; or
(c) Net gains from marketable securities
held for investment;
(21) Single
economic unit means a business in which
there is a sharing or exchange of value between the parts of the unit. A sharing
or exchange of value occurs when the parts of the business are linked by (a)
common management or (b) common operational resources that produce material
(i) economies of scale, (ii) transfers of value, or (iii) flow of goods, capital,
or services between the parts of the unit.
(A) For the purposes of this subdivision, common management includes, but is not limited
to, (I) a centralized executive force or (II) review or approval authority
over long-term operations with or without the exercise of control over the
day-to-day operations.
(B) For the purposes of this subdivision, common operational
resources includes, but is not limited
to, centralization of any of the following: Accounting, advertising, engineering,
financing, insurance, legal, personnel, pension or benefit plans, purchasing,
research and development, selling, or union relations;
(22) State means any
state of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, any territory or possession of the United States, and any foreign
country or political subdivision thereof;
(23) Subject to the Internal
Revenue Code means a corporation that meets
the requirements of section 243 of the Internal Revenue Code in order for
its distributions to qualify for the dividends-received deduction;
(24) Taxable income means federal taxable income as adjusted and,
if appropriate, as apportioned;
(25) Taxable year means the period the corporate taxpayer used
on its federal income tax return;
(26) Treasury
function is the pooling, management, and investment of intangible assets to
satisfy the cash-flow needs of the trade or business, including, but not limited
to, providing liquidity for a taxpayer's business cycle, providing a reserve
for business contingencies, or business acquisitions. A taxpayer principally
engaged in the trade or business of purchasing and selling intangible assets
of the type typically held in a taxpayer's treasury function, such as a registered
broker-dealer, is not performing a treasury function with respect to income
so produced;
(27) Unitary
business means a business that is conducted
as a single economic unit by one or more corporations with common ownership
and shall include all activities in different lines of business that contribute
to the single economic unit.
For the purposes of this subdivision, common ownership means one or more corporations owning fifty
percent or more of another corporation; and
(28) Unitary group means the group of corporations that are conducting
a unitary business.