09/25/1985 Meeting - Laserfiche WebLink

Home Browse Search

. e 3.648 Formula for Apportionment to this City of Business Income. All business income of a nonresident taxpayer shall be apportioned to this city by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is three. (a) Determination of "property factor": (1) The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangi- ble personal property owned or rented and used in this city during the tax period and the denominator of which is the average value of all the taxpayer's real and tangible person- al property owned or rented and used, regardless of location, during the tax period. (2) Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from sub-rentals. (3) The average value of property shall be determined by averaging the values at the beginning and ending of the tax period, but the department may require the averaging of monthly values during the tax period if reasonably required , to properly reflect the average value of the taxpayer's property. (b) Determination of "payroll factor": - (1) The payroll factor is a fraction, the numerator of which, is the total amount paid in this city during the tax period by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere by the taxpayer during the tax period. (2) Compensation is paid in this city if: a. The recipient's service is performed entirely within the city; or b. The recipient's service is performed both within and without the city, but the service performed without the city is incidental to the recipient's service within the city; or c. Some of the service is performed in the city and 1. the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the city, or 2. the base of operations or the place from which the service is directed or controlled is not in any city in which some part of the service is performed, but the recipient's residence is in this city. (c) Determination of "sales factor": (1) The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this city during the tax period, and the denominator of which is the total e o sales of the taxpayer everywhere during the tax period. (2) Sales of tangible personal property are in this city if: Ordinance - 10