36-2023 - Amend Tax Code re: HB 33

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DocuSign Envelope ID: D733A3F0-EC57-49D6-A4C4-7A15E4E44C25 of the taxpayer. "Qualifying remote work location" may include the residence of an employee or owner and may be located outside of the Municipality. An employee or owner may have more than one qualifying remote work location during a taxable year. C. "Reporting location" means either of the following: (i) A permanent or temporary place of doing business, such as an office, warehouse, storefront, construction site, or similar location, that is owned or controlled directly or indirectly by the taxpayer; (ii) Any location in this state owned or controlled by a customer or client of the taxpayer, provided that the taxpayer is required to withhold taxes under Chapter 128.051 on qualifying wages paid to an employee for the performance of personal services at that location. D. "Qualifying reporting location" means one of the following: (i) The reporting location in this state at which an employee or owner performs services for the taxpayer on a regular or periodic basis during the taxable year; (ii) If no reporting location exists in this state for an employee or owner under division (a)(1)D.(i)) of this section, the reporting location in this state at which the employee's or owner's supervisor regularly or periodically reports during the taxable year; (iii) If no reporting location exists in this state for an employee or owner under division (a)(1)D.(i) or (ii) of this section, the location that the taxpayer otherwise assigns as the employee's or owner's qualifying reporting location, provided the assignment is made in good faith and is recorded and maintained in the taxpayer's business records. A taxpayer may change the qualifying reporting location designated for an employee or owner under this division at any time. (2) A. A taxpayer may elect to apply the provisions of this division to the apportionment of its net profit from a business or profession. For taxpayers that make this election, the provisions of Section 128.062 apply to such apportionment except as otherwise provided in this division. B. A taxpayer shall make the election allowed under this division in writing on or with the taxpayer's net profit return or, if applicable, a timely filed amended net profit return or a timely filed appeal of an assessment. The election applies to the taxable year for which that return or appeal is filed and for all subsequent taxable years, until the taxpayer revokes the election. C. The taxpayer shall make the initial election with the Tax Administrator of the Municipality with which, after applying the apportionment provisions authorized in Section 1806.02, the taxpayer is required to file a net profit tax return for that taxable year. A taxpayer shall not be required to notify the Tax Administrator of a qualifying remote employee's or owner's qualifying remote work location is located, unless the taxpayer is otherwise required to file a net profit return with the Municipality due to business operations that are unrelated to the employee's or owner's activity at the qualifying remote work location. D. After the taxpayer makes the initial election, the election applies to every municipal corporation in which the taxpayer conducts business. The taxpayer shall not be required to file a net profit return with the Municipality solely because a qualifying remote employee's or owner's qualifying remote work location is located in the Municipality. E. Nothing in this section prohibits a taxpayer from making a new election under this division after properly revoking a prior election. (3) For the purpose of calculating the ratios described in Section 128.062(a)(1), all of the following apply to a taxpayer that has made the election described in division 128.044(a)(2).