Fill - Free fillable Form 2020: PA SCHEDULE H 2006910059 Total Everywhere (Pennsylvania) PDF form

1 Real and Tangible Property. Enter the amount from Line 1C. 1

2 Wages, Salaries, Commissions, and Other Compensation. Enter the amount from Line 2C. 2

3 Sales. Enter the amount from Line 3C. 3

4 Total Lines 1 through 3. 4

5 Apportionment - Divide Line 4 by 3, if all three factors apply; by 2, if only two factors apply;

or by 1, if only one factor applies. Calculate to six decimal places. 5

6 Total Net Income (Loss) from business. Schedule M, Part II, Section VII, Line 2 6

7 Net Income (Loss) for Pennsylvania. Multiply Line 6 by Line 5.

Enter on the PA-20S/PA-65 Information Return, Section II, Line 2e. 7

Real and Tangible Property Owned (original cost value)

Land and Buildings, including property rented * . . . . . . .

Machinery and Equipment, including property rented * . .

Furniture and Fixtures,

including property rented *

. . . . .

Automobiles and Trucks, including property rented * . . .

Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other Tangible Property, including property rented * . . . .

Total Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 (A) 1 (B)

* Eight times net annual rental rate (Attach Schedule)

1C Property factor (divide 1(B) by 1(A) - calculate to six decimal places) ●

Sales (Net of Returns and Allowances) . . . . . . . . . . . . . . . . .

Interest, Dividends, Rents, Royalties . . . . . . . . . . . . . . . . . .

Other Income (receipts only) . . . . . . . . . . . . . . . . . . . . . . . . .

Gross Sales Price of Assets (except securities**) . . . . . . . .

Total Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 (A) 3 (B)

** Unless you are a securities dealer

3C Sales factor (divide 3(B) by 3(A) - calculate to six decimal places) ●

OFFICIAL USE ONLY

Total Everywhere

Within Pennsylvania

TABLE 1 - PROPERTY FACTOR Description

TABLE 2 - PAYROLL FACTOR Description

TABLE 3 - SALES FACTOR Description

Wages, salaries, commissions and other compensation

to employees in:

Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Compensation of officers . . . . . . . . . . . . . . . . . . . . . . . . .

Salesmen’s salaries and commissions . . . . . . . . . . . . . .

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 (A) 2 (B)

2C Payroll factor (divide 2(B) by 2(A) - calculate to six decimal places) ●

APPORTIONED INCOME (LOSS) FROM A BUSINESS, PROFESSION, OR FARM DERIVED FROM SOURCES BOTH WITHIN

AND OUTSIDE PENNSYLVANIA.

Complete this schedule and submit it with the PA-20S/PA-65 Information Return if a PA S corporation, partnership or limited liability company filing as

a partnership or PA S corporation for federal income tax purposes derives business income from sources within and outside Pennsylvania or is located

in a KOZ. If one or more of the partners is a C corporation, the partnership must also complete PA-20S/PA-65 Schedule H-Corp and submit a copy to

each corporate partner. DO NOT USE THIS SCHEDULE TO APPORTION PA-SOURCE INCOME FROM OTHER ENTITIES.

The entity must calculate a figure as required in 1C, 2C and 3C to apply to net business income (loss) to determine the amount from within Pennsylvania.

Line 5 is an average of the sum of three fractions shown below.

NET BUSINESS INCOME (LOSS) APPORTIONMENT FORMULA

Submit a statement listing all places BOTH WITHIN AND OUTSIDE PENNSYLVANIA where the entity operates its business.

Name as shown on PA-20S/PA-65 Information Return FEIN

Special Apportionment to be completed only by railroad, truck, bus, and airline entities, pipeline or natural gas entities and water transportation en-

tities. (Refer to PA-20S/PA-65 Schedule H instructions)

(A)

(B)

●

(A) Numerator

(B) Denominator

PA SCHEDULE H

Apportioned Business Income

(Loss)/Calculation of PA Net

Business Income (Loss)

PA-20S/PA-65 H (DR) 05-20

PA Department of Revenue

2020

2006910059

(FI)

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1PA-20S/PA-65 H www.revenue.pa.gov

PURPOSE OF SCHEDULE

Use this schedule if a PA S corporation, partnership or entity

formed as a limited liability company that is classified as

a partnership or PA S corporation for federal income tax

purposes derives business income from sources within and

outside Pennsylvania or is located in a Keystone Opportunity

Zone (KOZ). If one or more of the partners is an entity, the

partnership must also complete PA-20S/PA-65 Schedule

H-Corp and submit a copy to each entity partner.

IMPORTANT: Railroad, truck, bus, airline, pipeline,

natural gas or water transportation companies do not

use the 3 factor approach shown on Schedule H. Rather,

they use a special apportionment at the bottom of the sched-

ule. See Special Apportionment.

If an entity receives a federal Schedule K-1 in place of a PA

Schedule K-1 from another pass through entity, do not use

PA-20S/PA-65 Schedule H to apportion PA-source

income from another entity. Report the information on

PA-20S/PA-65 Information Return, Section I, Line 1b and

Section II, Lines 2b and 2f.

A PA S corporation or partnership must apportion net income

(loss) from the operation of its business, profession or farm

according to the following rules regarding an entity operating

within and/or outside of Pennsylvania.

If the operation of the business is wholly within Pennsylva-

nia, the entity apportions income (loss) exclusively to Penn-

sylvania. The operation of a business is wholly within

Pennsylvania if, during the entire taxable year:

● The entity or its representative maintained or operated

within Pennsylvania an office, shop, store, warehouse,

factory, agency or commercial establishment where it

systematically and regularly conducted or managed

such business; and

● The entity or its representative did not maintain and

operate outside Pennsylvania any office, shop, store,

warehouse, factory, agency or commercial establish-

ment where it systematically and regularly conducted or

managed such business.

For purposes of this rule, do not take into account any

establishment maintained or operated by a representative

of a PA S corporation or partnership if the representative

acted as an independent contractor.

If the operation of the business is wholly outside Pennsylva-

nia, the entity cannot apportion to Pennsylvania any item of

income (loss), cost, or expense that it derives or incurs. The

operation of a business is wholly outside Pennsylvania if,

during the taxable year:

● The entity does not conduct in Pennsylvania any acts

or transactions in the ordinary course of operating its

business; or

● The entity only conducts in Pennsylvania acts or trans-

actions in the ordinary course of operating its business

that, with a fair measure of permanency or continuity,

are either or both of the following:

◦ The solicitation of orders or sales sent outside Penn-

sylvania for approval or rejection and, if approved, are

filled by shipment or delivery of goods or services from

a point outside Pennsylvania; or

◦ The solicitation of orders in Pennsylvania by the entity

or entity representative to a prospective customer, and

such customer sells entity’s product to its customers

via solicitation as described in the previous bullet.

For purposes of the above, an entity is not engaged in busi-

ness activities within Pennsylvania during a taxable year

merely by reason of sales of tangible personal property in

Pennsylvania or the solicitation of orders for sales of tangible

personal property in Pennsylvania on behalf of the entity by

one or more independent contractors that maintain an office

in Pennsylvania solely for making sales or soliciting orders

for sales.

When an entity operates a business that is neither wholly

within nor wholly outside Pennsylvania under the above

definitions, it allocates by separate accounting if:

● The business operations within Pennsylvania and the

business operations outside Pennsylvania constitute

independent profit centers, meaning there are no trans-

fers of finished or partly finished goods, raw materials,

supplies, services, or operational assets interspersed;

each center is free to buy outside; and because of geo-

graphical location, no center is in direct competition with

another; and

● The entity keeps its books so revenues, costs, and

expenses attributable to Pennsylvania operations can

be properly disclosed.

Otherwise, the entity must complete a PA-20S/PA-65

Schedule H.

GENERAL INFORMATION

ALLOCATING INCOME

OPERATION WHOLLY

WITHIN PENNSYLVANIA

OPERATION WHOLLY

OUTSIDE PENNSYLVANIA

OPERATION PARTLY

WITHIN PENNSYLVANIA

2020

Instructions for PA-20S/PA-65 Schedule H

Apportioned Business Income (Loss) Calculation of PA Net Business Income (Loss)

PA-20S/PA-65 H IN (DR) 05-20

2 PA-20S/PA-65 H www.revenue.pa.gov

Submit a statement that lists all places both within and out-

side Pennsylvania where the PA S corporation or partnership

conducts business activity or farming. Include the street

address, city, state, and the type of business, profession or

farm.

BUSINESS NAME

Enter the complete name of the entity or business as shown

on the PA-20S/PA-65 Information Return.

FEIN

Enter the nine-digit federal employer identification number

(FEIN) of the entity or business as shown on the PA-20S/

PA-65 Information Return.

PROPERTY FACTOR (REAL AND TANGIBLE

PROPERTY)

The property factor is a fraction. The numerator is the aver-

age value of real and tangible personal property employed

in the business and located in Pennsylvania. The denomi-

nator is the average value of the real and tangible property

employed in the business everywhere.

CALCULATING PROPERTY FACTOR

● The PA S corporation or partnership values owned prop-

erty at its original cost.

● Real property includes property the entity rents and uses

in the business.

● If the values of the Pennsylvania real or tangible per-

sonal property the entity employs in its business are

zero at the beginning of any month during the taxable

year, the entity determines its average value of property

by averaging the values at the beginning and ending of

the taxable year. Otherwise, the entity determines its

average value of property by averaging the monthly

values.

● The entity values rented property by multiplying the

gross rents paid during the taxable year by 8.

● Gross rents are the sum of money or other consideration

paid directly or indirectly by the PA S corporation or part-

nership for its benefit for the use or possession of the

rented property.

Gross rents include:

● The amount paid for the use or possession of real

property or any part thereof, whether designated as a

fixed sum of money or a percentage of sales, profits, or

otherwise;

● The amount paid as additional rent, or instead of rent,

the amount the entity paid in interest, taxes, insurance,

repairs or other amounts under the terms of a lease or

other arrangement; and

● The portion of the cost of any improvement to real estate

made by or on behalf of the taxpayer, which reverts to

the owner or the lessor upon termination of the lease

or other arrangement based on the unexpired term

of the lease commencing with the completion date of

the improvement, or the life of improvement, if its life

expectancy is less than the unexpired term of the lease.

If the entity erects (or another erects on behalf of the

entity) a building on leased land, the entity determines

the value of the land by multiplying the gross rent by 8

and the value of the building in the same manner as if

owned by the PA S corporation or partnership. The pro-

portional cost of an improvement (other than the building

on leased land) is generally equal to the amount of

allowable amortization in calculating Pennsylvania net

income, whether the lease does or does not contain an

option of renewal.

Gross rents shall not include:

● Any portion of a payment or credit to the proprietor of

the business or to a shareholder or partner in the PA S

corporation or partnership conducting the business for

the use of real property;

● Amounts payable for separate charges for water and

electric service furnished by the lessor;

● Amounts payable for storage if no designated space

under the control of the taxpayer as a tenant is rented

for storage purposes; and

● That portion of any rental payment that, at the discretion

of the department, is applicable to property subleased

by the taxpayer and not used by him or her in conducting

business.

PAYROLL FACTOR (WAGES, SALARIES,

COMMISSIONS, AND OTHER COMPENSATION)

The payroll factor is a fraction. The numerator is the total

current employee wage and salary expense for the taxable

year the PA S corporation or partnership incurs in connection

with its business activity within Pennsylvania. The denomi-

nator is the total current employee wage and salary expense

the entity incurs in connection with its business everywhere.

DETERMINING PAYROLL FACTOR

The entity incurs employee wage and salary expense in con-

nection with its business activity in Pennsylvania if one of

the following applies:

● The employee performs personal services entirely within

Pennsylvania;

● The employee performs personal services outside

Pennsylvania that are incidental to the usual services

the employee performs in Pennsylvania; or

● The employee performs some personal services in

Pennsylvania, and at least one of the following applies:

◦ The employee’s “base of operations” is in Pennsylvania;

◦ The place from which the employee receives direction

or control is in Pennsylvania; and/or

◦ The employee is a resident of Pennsylvania.

Base of operations refers to the place or fixed center from

which the individual works. An individual’s base of operations

may be his/her business office, or a place at which the em-

ployee is to receive directions and instructions if the contract

of employment so specifies. In the absence of more control-

ling factors, an individual’s base of operations may be the

place to which he/she has business mail, supplies, and

equipment sent, or the place where he/she maintains

business records.

COMPLETING PA SCHEDULE H

TABLE 1

TABLE 2

3PA-20S/PA-65 H www.revenue.pa.gov

SALES FACTOR (SALES)

The sales factor is a fraction. The numerator is total gross

receipts derived from sales in Pennsylvania during the

taxable year. The denominator is total gross receipts derived

from all sales during the taxable year. The sales factor

includes income such as interest, dividends, or from property

dispositions, but only to the extent described in these

instructions.

CALCULATING SALES FACTOR

For purposes of calculating the sales factor, only sales

of stock-in-trade or inventory held primarily for sale to

customers in the ordinary course of the business, sales of

services to customers, and sales of certain assets shall be

taken into account. A sale of stock-in-trade or inventory is in

Pennsylvania if:

● The seller delivers or ships the property from outside

Pennsylvania into Pennsylvania to any purchaser other

than the federal government;

● The seller delivers or ships the property from Pennsyl-

vania and the purchaser is the federal government;

● The seller delivers or ships the property from Pennsyl-

vania to another state or country, and the other state or

country has no jurisdiction to tax the net income of the

business derived from such sales; or

● The seller delivers or ships the property from a point

within Pennsylvania to a purchaser in Pennsylvania.

A sale of services is in Pennsylvania if the seller performs

the services wholly within Pennsylvania.

A sale of services is in Pennsylvania if the seller performs a

greater portion of the services in Pennsylvania than outside

Pennsylvania, based on cost or performance. A sale of a tan-

gible asset in Pennsylvania is a sale of property within Penn-

sylvania. A sale of certain intangible assets employed in a

going concern in Pennsylvania is a sale of property within

Pennsylvania.

ALLOCATING GAIN (LOSS) FROM THE DISPOSITION

OF TANGIBLE PROPERTY

Generally, the revenue, cost, expense, and liability that a PA

S corporation or partnership derives from or incurs in the

sale, exchange or disposition of real property or tangible per-

sonal property is entirely derived from or incurred in the state

or country in which the property is physically located.

Special rules, however, apply with respect to the following:

● Stock-in-trade or other property of a kind the entity in-

cludes in its inventory at the close of the taxable year;

● Property the entity holds primarily for sale to customers

in the ordinary course of its business operations; and

● Tangible and intangible assets the entity employs in a

line of business.

Gross proceeds from the disposition of tangible property is

included in the sales factor with respect to such assets if:

● The entity reinvests proceeds from the sale of the assets

in the same line of business (as defined by the North

American Industry Classification System (NAICS) code)

within the same entity; and

● The entity must use the proceeds to acquire like-kind

property used in the same business, profession, or farm.

GAIN (LOSS) FROM THE DISPOSITION OF

INTANGIBLE PERSONAL PROPERTY, OTHER

THAN GOODWILL

Generally, the revenue, cost, expense and liability that the

PA S corporation or partnership derives from or incurs in the

sale, exchange or disposition of intangible personal property

other than goodwill from the disposition of a going concern,

is derived from or incurred in the state or country in which

the entity has physical presence. Refer to Personal Income

Tax Bulletin 2005-02, Gain or Loss Derived from the Dispo-

sition of a Going Concern.

Gross proceeds from the disposition of intangible personal

property other than goodwill is included in the sales factor

with respect to such assets if:

● The entity reinvests proceeds from the sale of the assets

in the same line of business (as defined by the North

American Industry Classification System (NAICS) code)

within the same entity;

● The entity must use the proceeds to acquire like-kind

property used in the same business, profession, or farm.

INTEREST INCOME

Generally, the PA S corporation or partnership allocates any

item of interest, cost, expense or liability incurred in the

production of interest.

The PA S corporation or partnership classifies interest as net

profits and therefore apportions the interest along with other

net profits in the following instances:

● Interest the PA S corporation or partnership derives

from, and costs, expenses or liabilities the PA S corpo-

ration or partnership incurs in connection with, purchase

money mortgages on real estate or land contracts;

● Interest the PA S corporation or partnership derives

from, and costs, expenses or liabilities the PA S corpo-

ration or partnership incurs in connection with, assets it

employs as working capital (generally current assets) in

its business and from accounts and notes receivable

from sales or products or services it sells in the ordinary

course of business; and

● Interest incidental to the production or collection of rental

or royalty income.

The PA Personal Income Tax Guide sets forth in detail the

rules for classifying interest income. Interest that is not net

profits may be classified as interest income, net rental

income or net gains.

DIVIDEND INCOME

Generally, the PA S corporation or partnership allocates any

item of dividend, cost, expense or liability incurred in the pro-

duction of dividends. The special rules for allocating interest

income described previously also apply to dividend income.

TABLE 3

4 PA-20S/PA-65 H www.revenue.pa.gov

NOTE: Include interest and dividend income when it

is reportable as net profits from the operation of a

business. If interest and dividend income were reclassified

for Pennsylvania personal income tax purposes on PA-20S/

PA-65 Schedule M, then it would be reported on PA-20S/

PA-65 Schedule H.

If not reclassified, interest and dividend income are not

reportable on PA-20S/PA-65 Schedule H and are not includ-

able in the sales factor for apportionment purposes.

RENTAL INCOME FROM REAL ESTATE

Rent the PA S corporation or partnership derives from real

estate that it does not employ in the operation of its business

– and costs, expenses, and liabilities the entity incurs in the

production or collection of such rents – are allocable to

Pennsylvania only if the rental property is in Pennsylvania.

RENTAL INCOME FROM TANGIBLE PERSONAL

PROPERTY RENTS

The PA S corporation or partnership allocates the rent it

derives from tangible personal property it does not employ

in its business operation and costs, expenses and liabilities

that it incurs in the production or collection of such rents –

by multiplying the net rent by a fraction. The numerator is

the number of days the property is physically in Pennsylva-

nia during the rental period.

The denominator is the number of days for all rental periods

in the taxable year.

If the physical location of the property during the rental

period is unknown, the entity allocates it to the state or coun-

try in which the property was located at the time the rent

payer obtained possession.

ROYALTIES FROM REAL PROPERTY

Proceeds derived from non-operating interests in coal, oil,

gas, or other minerals in place and costs, expenses, and

liabilities incurred in the production of such receipts – are

allocable to Pennsylvania only if the property from which the

operating interests are served is located in Pennsylvania.

ROYALTIES FROM PATENTS AND COPYRIGHTS

The PA S corporation or partnership allocates patent and

profits from the operation of a business – and the costs,

expenses, and liabilities incurred in the production and

collection of such royalties – to Pennsylvania only if and to

the extent that:

● The payer employed the patent in the production,

fabrication, manufacturing, or other processing in

Pennsylvania;

● The payer produced the patented products in Pennsyl-

vania; or

● The payer originates the printing or publication in

Pennsylvania.

NET BUSINESS INCOME (LOSS) APPORTIONMENT

FORMULA

The entity must calculate a figure as required in 1C, 2C and

3C to apply to net business income (loss) to determine the

amount from within Pennsylvania. The figure is an average

of the sum of three factors from Tables 1, 2, and 3.

Submit a statement listing all places within and outside

Pennsylvania where the entity operates its business.

PROPERTY FACTOR (REAL AND TANGIBLE

PROPERTY)

TOTAL EVERYWHERE

Enter the average value of the real and tangible personal

property owned or rented and used in business or farming,

within and outside Pennsylvania.

WITHIN PENNSYLVANIA

Enter the average value of the real and tangible personal

property owned or rented and used in business or farming

within Pennsylvania. Refer to Table 1 on page 2 on how to

calculate average value.

PROPERTY FACTOR

Divide Column 1B by Column 1A. Calculate to six decimal

places. Enter the amount.

PAYROLL FACTOR (WAGES, SALARIES,

COMMISSIONS, AND OTHER COMPENSATION)

TOTAL EVERYWHERE

Enter the total compensation paid within and outside Penn-

sylvania during the taxable year.

WITHIN PENNSYLVANIA

Enter the total compensation paid within Pennsylvania dur-

ing the entire taxable year.

PAYROLL FACTOR

Divide Column 2B by Column 2A. Calculate to six decimal

places. Enter the amount.

SALES FACTOR (SALES)

TOTAL EVERYWHERE

Enter the total sales within and outside Pennsylvania during

the entire taxable year.

WITHIN PENNSYLVANIA

Enter the total sales within Pennsylvania during the entire

taxable year.

TABLE INSTRUCTIONS

TABLE 1

COLUMN 1A

COLUMN 1B

LINE 1C

TABLE 2

COLUMN 2A

COLUMN 2B

LINE 2C

TABLE 3

COLUMN 3A

COLUMN 3B

5PA-20S/PA-65 H www.revenue.pa.gov

SALES FACTOR

Divide Column 3B by Column 3A. Calculate to six decimal

places. Enter the amount.

REAL ESTATE AND TANGIBLE PROPERTY

Enter the amount from Table 1, Line 1C.

WAGES, SALARIES, COMMISSIONS, AND OTHER

COMPENSATION

Enter the amount from Table 2, Line 2C.

SALES

Enter the amount from Table 3, Line 3C.

TOTAL

Add the amounts from Lines 1, 2, and 3.

APPORTIONMENT

Divide Line 4 by 3 if all three factors apply; by 2 if only two

factors apply; or by 1 if only one factor applies. Calculate to

six decimal places. Enter the amount. For example, if the

entity entered amounts only for Property and Sales in Col-

umn A, then the entity divides the amount on Line 4 by 2.

TOTAL NET INCOME (LOSS) FROM BUSINESS

Do not include income from other partnerships, estates,

or trusts. Enter the amount from the PA-20S/PA-65 Sched-

ule M, Part II, Section VII, Line 2.

NET INCOME (LOSS) FOR PENNSYLVANIA

Multiply the amount on Line 6 by the amount on Line 5. Enter

the amount on Line 2e, Section II of the PA-20S/PA-65

Information Return.

Only railroad, truck, bus and airline entities, pipeline or nat-

ural gas entities and water transportation entities complete

this line.

Enter as the numerator (A) total revenue miles in Pennsyl-

vania. Enter as the denominator (B) total revenue miles

everywhere. Calculate to six decimals places and enter here

and on Line 5.

All business income for transportation companies is allo-

cated to PA based on a special apportionment involving rev-

enue miles. A revenue mile is the average receipts derived

from the transportation of persons or property by the tax-

payer for one mile. Business income is apportioned to PA by

multiplying total transportation income by a factor. The factor

is derived by taking the numerator which is total revenue

miles within PA for a taxable period and dividing it by the

denominator, total revenue miles everywhere.

Please view the example for the special apportionment

which includes calculations for the transportation of people

and property.

● RAILROAD, TRUCK, BUS OR AIRLINE ENTITIES

All business income of railroad, truck, bus or airline entities

is apportioned to Pennsylvania by multiplying the income by

a fraction. The numerator of the fraction is the taxpayer’s

total revenue miles within Pennsylvania during the taxable

period. The denominator of the fraction is the total revenue

miles of the taxpayer everywhere during the taxable period.

A revenue mile is the average receipts derived from the

transportation by the taxpayer of persons or property one

mile.

Where revenue miles are derived from the transportation of

persons and property, the revenue mile fractions attributable

to each class of transportation are calculated separately. The

average of the two fractions, weighted in accordance with

the ratio of total receipts from each class of transportation

everywhere to total receipts from both such classes of trans-

portation everywhere, is used to apportion business income

to Pennsylvania.

Example. Company A is in the business of transporting per-

sons and property. During the current tax period Company

A reported receipts of $1 million, $400,000 from transporta-

tion of persons and $600,000 from the transportation of

property. Company A’s Pennsylvania revenue miles for the

transportation of persons is $40,000. The Pennsylvania rev-

enue miles from the transportation of property are $120,000.

The special apportionment fraction for Company A for the

current tax period is calculated as shown below.

● PIPELINE OR NATURAL GAS ENTITIES

All business income of pipeline entities is apportioned to

Pennsylvania by multiplying the income by a fraction. The

numerator of the fraction is the revenue ton miles, revenue

barrel miles, or revenue cubic feet miles of the taxpayer in

Pennsylvania during the tax period. The denominator is the

revenue ton miles, revenue barrel miles, or revenue cubic

feet miles of the taxpayer everywhere during the tax period.

A revenue ton mile, revenue barrel mile, or revenue cubic

feet mile means, respectively, the receipts derived from the

transportation by the taxpayer of one ton of solid property,

one barrel of liquid property or one cubic foot of gaseous

property transported one mile.

LINE 2

LINE 3

LINE 4

LINE 5

LINE 6

LINE 7

SPECIAL APPORTIONMENT

Example

Transportation of Persons Receipts for Transportation

PA Rev Miles $ 40,000 X of persons $ 400,000 = .040000

Total Rev Miles $400,000 Total Receipts $1,000,000

Transportation of Property Receipts for Transportation

PA Rev Miles $ 120,000 X of property $ 600,000 = .120000

Total Rev Miles $600,000 Total Receipts $1,000,000

Company A’s apportionment for the current tax period is

0.040000 + 0.120000 or 0.160000.

LINE 1

LINE 3C

LINE INSTRUCTIONS

6 PA-20S/PA-65 H

All business income of natural gas entities subject to

regulation by the Federal Power Commission or by the

Pennsylvania Public Utility Commission is apportioned to

Pennsylvania by multiplying the income by a fraction. The

numerator of the fraction is the cubic foot capacity of the tax-

payer’s pipelines in Pennsylvania. The denominator of the

fraction is the cubic foot capacity of the taxpayer’s pipelines

everywhere, at the end of the taxable period. Determine the

cubic foot capacity of a pipeline by multiplying the square of

its radius (in feet) by its length (in feet).

● WATER TRANSPORTATION ENTITIES OPERATING

ON HIGH SEAS

All business income of water transportation entities operat-

ing on high seas is apportioned to Pennsylvania by multiply-

ing the business income by a fraction. The numerator of the

fraction is the number of port days spent inside Pennsylva-

nia. The denominator of the fraction is the total number of

port days spent outside and inside Pennsylvania.

Port days does not include periods when ships are not in

use because of strikes, withheld from service for repair or

out of use because of seasonal reduction of services. Days

in port are calculated by dividing the aggregate number of

hours in all ports by 24.

● WATER TRANSPORTATION ENTITIES OPERATING

ON INLAND WATERS

All business income of water transportation entities operat-

ing on inland waters are apportioned to Pennsylvania by

multiplying the business income by a fraction.

The numerator of the fraction is the taxpayer’s total revenue

miles within Pennsylvania during the taxable period. The

denominator of the fraction is the total revenue miles of

the taxpayer everywhere during the taxable period. In the

determination of revenue miles, one-half of the mileage of all

navigable waterways bordering Pennsylvania and another

state shall be considered Pennsylvania miles. A revenue

mile means the revenue receipts derived from the trans-

portation by the taxpayer of persons or property one mile.

www.revenue.pa.gov

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Form 2020: PA SCHEDULE H 2006910059 Total Everywhere (Pennsylvania)

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