34-67 New 128.0101 - 128.2702 enact income tax

Home Browse Search

-5- DET~RFiINATION OF ALLOCATION OF TAX Section 128.0701 Method of Determination In the taxation of income which is subject to the City of Lakewood Income Taxes if the books and records of a taxpayer conducting a business or profssslon both within and without the boundaries of the City of Lakewood shall disclose with reason- able accuracy what portion of its net profit is attributable to that part of the business or profession conducted within the boundaries of the City of Lakewood, then only such portion shall be considered as having a taxable situs in the City of Lakswood for the purposes of municipal income taxation. The portion of the entire net profits of a taxpayer to be allocate~ as having been derived from within the City of Lakewood, in the absence of actual records thereof, shall be determined as follows: Multiply the entire net profits by a business allocation percentage to be determined by'a three-factor formula of property, payroll, and sales, each of which.shall be given equal weight, as follows: a. The average net book value of the real and tangible personal property owned or used by the taxpayer in the business or profession inthe City of Lakewood during the taxable period to the average net book value of all the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated. As used in the preceding paragraph, real property shall include property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereon by eight. b. Wages, salaries and other compensation paid during the taxable period to persons employed inthe business or profession for services performed in the City of Lakewood to wages, salaries, and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed. c. Gross receipts of the business or profession from sales made and services performed during the taxable period in the City of Lakewood to gross receipts of the business or professio during the sams period from sales and services, wherever made or performed. In the event that the foregoing allocation formula does not produce an equitable result, another basis may, under uniform regulations, be substituted so as to produce such result.. Section 128.0702 Sales Made in the City of Lakewood As used in paragraph "c" of Section 128.0701 "sales made in the City of Lakewood" mean: a. Ail sales of tangible personal property which is delivered within the City of Lakewood regardless of where title passes if sh~pped or delivered from a stock of goods within the City of Lakewood.