Section 125-801-08 - VariationsA.Special apportionment formulas. A taxpayer may petition for, or the assessor may require, an apportionment variation, if the apportionment provided by statute and this rule does not fairly represent the extent of the taxpayer's business activity in the State. Nothing in this rule precludes the assessor from establishing appropriate procedures for determining the correct apportionment, including the use of separate accounting, determination of appropriate factors, or any other method to effectuate equitable apportionment.B.Factors for corporate partners. The property and payroll factors of a special apportionment formula for a corporation with an interest in a pass-through entity may be proposed using the guidance below.(1)Property factor. In determining the denominator of its property factor, a corporate partner, shareholder or member must include its pro rata share of the total value of the pass-through entity's real and tangible personal property, whether owned or rented, used during the pass-through entity's taxable year. In determining the numerator of its property factor, a corporate partner, shareholder or member must include its pro rata share of the value of such property located in Maine. To avoid duplication, however, the following adjustments must be made to the value of any property leased or rented by the corporation to the pass- through entity or vice versa. (a) When a corporation rents property to the pass-through entity, the corporation must include the original cost of the property in its property factor. The pass-through entity must not include any portion of the value of this property in its property factor.(b) When the pass-through entity rents property to the corporation, the corporation must include in its property factor the sum of (i) the original cost of the property multiplied by the corporation's percentage interest in the pass-through entity, plus (ii) eight times the net annual rental rate of the property multiplied by the difference between 100% and the corporation's percentage interest in the pass-through entity.(2)Payroll factor. In determining the denominator of its payroll factor, a corporate partner, shareholder or member must include its pro rata share of the total compensation paid by the pass-through entity during the pass-through entity's taxable year. In determining the numerator of its payroll factor, a corporate partner, shareholder or member must include its pro rata share of such compensation paid in Maine during the taxable year.18-125 C.M.R. ch. 801, § 08