<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont-000000 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s8c53c604-de95-4d9f-8350-5d66e513bc1d000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont-000002 { color: #0000FF; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">    </span><span class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont-000000">20:10:28:125.  Apportionment procedures for operating taxes.</span><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont"> For apportionment purposes, the expenses in operating taxes, account 7200, are segregated into operating federal, state, and local income taxes and all other operating taxes.</span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1d000001"> </span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">    Operating federal, state, and local income taxes are apportioned among the operations based on the approximate net taxable income, positive or negative, applicable to each of the operations. The approximate net taxable income from each of the operations is the summation of the following amounts apportioned to each operation using the procedures in this chapter:</span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1d000001"> </span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">    (1)  Operating revenues;</span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">    (2)  Less operating expenses;</span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">    (3)  Less operating taxes except the net income tax being apportioned and except any other tax not treated as a deductible item in the determination of taxable net income for this purpose;</span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">    (4)  Less operating fixed charges.</span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1d000001"> </span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">    The amount of fixed charges attributable to the operations is obtained by subtracting the tax component, positive or negative, attributable to other than the operating fixed charges. For example, fixed charges on nonoperating investments are that proportion of total fixed charges which nonoperating net investments are of total operating and nonoperating net investments. Operating fixed charges, including interest on rural telephone bank stock, are apportioned among the operations based on the separation of the cost of telecommunications plant less applicable reserves.</span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1d000001"> </span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">    Other operating taxes are directly assigned to the applicable operation if possible. If direct assignment is not feasible, these expenses are apportioned among the operations based on the separation of the cost of telecommunications plant in service, account 2001.</span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1d000001"> </span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">    </span><span class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont-000000">Source:</span><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont"> 19 SDR 111, effective </span><span class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">January 31, 1993.</span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">    </span><span class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont-000000">General Authority:</span><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=49-1-11"><span class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont-000002">49-1-11</span></a><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes?Statute=49-31-5"><span class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont-000002">49-31-5</span></a><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes?Statute=49-31-18"><span class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont-000002">49-31-18</span></a><span class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">.</span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">    </span><span class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont-000000">Law Implemented:</span><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=49-31-18"><span class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont-000002">49-31-18</span></a><span class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">.</span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1d000001"> </span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont">    </span><span class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont-000000">Cross-References:</span><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dDefaultParagraphFont"> Operating taxes, 47 C.F.R. § 32.7200 (1991); Apportionment procedures, 47 C.F.R. § 36.412(a)(b)(c) (1991).</span></p><p dir="ltr" class="s8c53c604-de95-4d9f-8350-5d66e513bc1dNormal"><span xml:space="preserve" class="s8c53c604-de95-4d9f-8350-5d66e513bc1d000001"> </span></p></div></body></html>