71-10 Amend Chpt 128, Municipal Income Tax

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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 athree-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 in the City Buring 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 includes property rented or leased by the taxpayer and the value of such properly 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 in the business or profession for services performed in the City 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 penod in the City to gross receipts of the business or profession during the same 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. 128.0702 SALES MADE IN THE CITY. As used in subsection 128.0701(c), "sales made in the City" means: (a) All sales of tangible personal property which is delivered within the City regardless of where tstle passes if shipped or delivered from a stock of goods within the City. (b) All sales. of tangible personal property which is delivered within the City regardless of where title passes even though transported from a point outside the City if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the City and the sales result from such solicitation or promotion. (c) All sales of tangible personal property which is shipped from a place within the City to purchasers outside of the City .regardless of where title passes if the taxpayer is not, through its own employees regularly engaged in the solicitation or promotion of sales at the place were delivery is made. 128.0703 TOTAL ALLOCATION. Add together the percentages determined in accordance with subsections (a), (b) and (c) of Section 128.0701, or such of the aforesaid percentages as are applicable to the particular taxpayer and divide the total so obtained by the number of percentages used in deriving such total in order to obtain the business allocation percentage referred to in Section 128.0701. A factor is applicable even though it may be allocable entirely in or outside the City. 128.0704 RENTALS. (a) Rental income received by a taxpayer shall be included in the computation of net .profits from business activities under subsections (c), (d) and (e) of Section 128.0501, only if and to the extent that the rental, ownershi , management or operations of the real estate from which such rentals are derived (Pwhether so rented, managed or operated by a taxpayer individually or through agents or other