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175.0701 METHOD OF DETERMINATION. <br />WIn the taxation of income which is subject to the municipal income tax, # <br />purposes of munm.e'p.,l innnmo +.,.,.,+;,,r. The, portion of the entire net profits of a <br />taxpayer to be allocated as having been derived from within the Municipality +n <br />"°?senee of-a^*??Tecor,?-;ne, shall be determined as follows: <br />M Multiply the entire net profits by a business allocation percentage to be <br />determined by a three-factor formula of property, payroll and sales, each of which <br />shall be given equal weight as follows: <br />(a) The average net book value of the real and tangible personal <br />property owned or used by the taxpayer in the business or profession in the <br />Municipality during the taxable period to the average net book value of all the real <br />and tangible person property owned or used by the taxpayer in the business or <br />profession during the same period, wherever situated. As used in subsection (a) <br />hereof, real property includes property rented or leased by the taxpayer and the <br />value of such property shall be determined by multiplying the annual rental <br />thereon by eight. <br />(b) Wages, salaries and other compensation paid during the <br />taxable period to person employed in the business or profession for services <br />performed in the Municipality to wages, salaries and other compensation paid <br />during the same period to persons employed in the business or profession, <br />wherever their services are performed. <br />(c) Gross receipts of the business or profession from sales made <br />and services performed during the taxable period in the Municipality to gross <br />receipts of the business or profession during the same period from sales and <br />services, wherever made or performed. <br />LQ In the event that the foregoing allocation formula does not produce an <br />equitable result, the Administrator may approve the use of books and records as <br />a substitute method, by applying the followinq_ <br />(a). The net profits allocable to the Municipality from business, <br />profession or other activities conducted in the Municipality by corporations or <br />unincorporated entities (whether resident or non-resident) mav be determined <br />from the records of the taxpayer only if the taxpayer has bona fide records which <br />disclose with reasonable accuracy what portion of his net profits is attributable to <br />that part of his activities conducted within the Municipality. <br />(b). If the books and records of the taxpayer are used as the basis <br />for apportioninq net profits, a statement must accompany the return explaininq <br />the manner in which such apportionment is made in sufficient detail to enable the <br />Administrator to determined whether the net profits attributable to the Municipality <br />are apportioned with reasonable accuracy.