77-2734.04 Income tax; terms, defined.
77-2734.04. Income tax; terms, defined.As used in sections 77-2734.01 to 77-2734.15, unless the context otherwise requires:(1) Commercial domicile shall mean the principal place from which the trade or business of the taxpayer is directed or managed;(2) Compensation shall mean wages, salaries, commissions, and any other form of remuneration paid to employees for personal services;(3) Corporate taxpayer shall mean 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 shall 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;(4) Corporation shall mean all corporations and all other entities that are taxed as corporations under the Internal Revenue Code;(5) Doing business in this state shall mean 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;(6) Federal taxable income shall mean 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;(7) Sales shall mean all gross receipts of the taxpayer;(8) Single economic unit shall mean 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 shall include, but not be 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 shall include, but not be 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;(9) State shall mean 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;(10) Subject to the Internal Revenue Code shall mean 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;(11) Taxable income shall mean federal taxable income as adjusted and, if appropriate, as apportioned;(12) Taxable year shall mean the period the corporate taxpayer used on its federal income tax return;(13) Unitary business shall mean 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 shall mean one or more corporations owning fifty percent or more of another corporation; and(14) Unitary group shall mean the group of corporations that are conducting a unitary business. SourceLaws 1984, LB 1124, § 7; Laws 1986, LB 774, § 10; Laws 1987, LB 773, § 20.