Amends GS 105-130.4 (allocation and apportionment of income for corporations) establishing the audience factor to source receipts for the purpose of allocating and apportioning multistate income and franchise tax for broadcasters.

Defines broadcaster to be a person who provides audio or video programming to customers in this State by digital or analog means in exchange for one or more of the following: advertising receipts, subscriber fees, license, rent, or similar fees. Clarifies that broadcaster includes a television or radio station licensed by the FCC, including network-owned or network-affiliated stations, a television or radio broadcast network, a cable program network, a distributor of audio or video programming, a cable system operator, and a satellite system operator. 

Establishes that the sales factor for a broadcaster is a fraction, with the numerator being the sum of the broadcaster's gross receipts from sources within the state, and the denominator being the sum of the broadcaster's gross receipts from transactions and activity in the regular course of its trade or business everywhere. Defines gross receipts to mean the same as the term sales in GS 105-130.4.

Sets forth that (1) advertising gross receipts and license fees for audio or video programming in release are attributable to this State in accordance with the audience factor in this State; (2) gross receipts from subscriber fees, rents, sales, or similar charges from audio or video programming in release are attributable to this State based on the amount of subscriber or other fees paid by customers in this State; and (3) a sale of audio or video programming on tangible media is sourced to this State as a sale of tangible personal property. Defines audience factor to mean the factor determined by the ratios detailed for a television station, radio station, and cable or satellite program and channel broadcasts. Defines subscriber to mean an individual residence or other outlet that is the ultimate recipient of the transmission of the audio or video programming. Defines rent to mean license fees or other payments or consideration provided in exchange for the broadcast or other use of television or radio programming. Defines release or in release to mean the placing of film or radio programming into service, meaning when it is first broadcast to the primary audience for entertainment, educational, commercial, artistic, or other purposes. Clarifies that each episode of a television or radio series is placed in service when it is first broadcast, and that a program is not placed in service merely because it is completed and therefore in a condition or state of readiness and availability for broadcast, or merely because it is previewed to prospective sponsors or purchasers. Defines broadcast to mean the transmission of audio or video programming, directly or indirectly, to viewers and listeners by any method of communication or combination of methods.

Provides that the state or states of assignment must be reasonably approximated if the audience factor for a receipt cannot be determined. Requires the taxpayer to reasonably approximate the receipts attributable to this State's market using a percentage that reflects the ratio of NC subscribers to the total number of subscribers where a taxpayer is delivering advertising or licensed content directly or indirectly to a known list of subscribers. Where the taxpayer is delivering advertising or licensed content through an intermediary and does not have access to the list of subscribers, requires the taxpayer to reasonably approximate the receipts attributable to this State's market using the percentage that reflects the ratio of the NC population to the total population in the specific geographic area where the advertisement or licensed content is materially used. Establishes that the area where the advertisement or licensed content is materially used does not include areas outside the United States unless the taxpayer provides substantial evidence to the contrary. When a taxpayer provides substantial evidence that the advertisement or licensed content is materially used in a city within a foreign country, the population of that city can be included in the population ratio calculation. Allows the population of the foreign country to be used in the population ratio calculation when a taxpayer provides substantial evidence that the advertisement or licensed content is materially used throughout a foreign country. 

Establishes that the Department of Revenue can authorize an alternate approach that reflects an attempt to obtain the most accurate assignment of receipts when the specified rules of reasonable approximation fail to reasonably approximate the percentage of receipts attributable to this State's market.

Effective for taxable years beginning on or after January 1, 2018.