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Indiana Department of Revenue
Schedule E-7 - Apportionment Schedule for Interstate Transportation
Income Tax Liability of Entities Involved in Interstate For railroads, truck lines, bus lines, and interurban lines,
Transportation if the service both originates and terminates in Indiana,
Schedule E-7 is to be used by entities who are engaged in all the receipts from that service shall be considered from
the transportation of persons and property for hire. All Indiana.
entities involved in public transportation who operate
or whose property is operated in or through Indiana are Line 2. Enter the total revenue miles traveled everywhere.
subject to Indiana income tax. This schedule is to be used For purposes of apportionment, the term everywhere does
by airlines, railroads, truck lines, bus lines, interurban not include sales of a foreign corporation located outside
lines, pipeline systems, and inland water carriers for the United States and its territories.
purposes of apportioning Indiana adjusted gross income.
Line 3. Divide the revenue miles in Indiana (line 1) by
Adjusted Gross Income the revenue miles everywhere (line 2) to determine the
The Indiana adjusted gross income tax applies to all percentage of transportation activity within Indiana.
entities who derive income from the provision of public
transportation services operated in or whose property Line 4. Enter the total amount of income derived from
is operated through Indiana. A transportation company transportation activity everywhere.
carrying persons or goods in or through Indiana is subject
to Indiana adjusted gross income tax. Line 5. Enter the total income from nontransportation
sources, such as income from interest, dividends, sale of
All multistate taxpayers are required under Indiana Code capital assets, etc. Service fees (boxing and tagging items
6-3-2-2(b) to use an apportionment formula to determine and so on), sales income (packing boxes, insurance, and
the amount of business income taxable in Indiana. so on), and all other nonmobile-type income must be
included.
Instructions for Completing Schedule E-7
Line 1. Enter the total revenue miles traveled in Indiana. Line 6. Enter the total of line 4 and line 5.
The total revenue dollars from transportation, both
intrastate and interstate, are to be assigned to the states Line 7. Multiply line 4 by line 3 to determine the amount of
through which the property, freight, or passengers move transportation revenue from Indiana.
based on mileage. Pipeline companies may substitute barrel
miles, cubic foot miles, or other appropriate measures for Line 8. Enter the amount of income derived from
revenue miles. In practice, revenue miles usually equal road nontransportation activity in Indiana.
miles.
Line 9. Enter the total of line 7 and line 8.
For airlines, use the ratio of departures of aircraft in
Indiana by cost & value to the total value of departures Line 10. Divide line 9 by line 6 to determine the Indiana
of aircraft by cost & value from all jurisdictions. (MTC apportionment percentage.
approach).
Carry the resulting average Indiana apportionment
If you have receipts from the transportation of passengers percentage to the appropriate line on the annual Indiana
(including mail and express handled in passenger income tax return.
service) and from the transportation of freight, mail, and
express, determine the miles attributable to Indiana from
passengers and freight, mail, and express separately.
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