2005 020 Ordinance - Laserfiche WebLink

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175.0701 METHOD OF DETERMINATION. LffiIn the taxation of income which is subject to the municipal income tax, +# PuFPOses -^-?,unicip,a-I-EnEe^^xati en.-The, portion of the entire net profits. of a taxpayer to be allocated as having': been derived from within the Municipality +n +h„ .,hsen„e „f .,,.+,,41 ,-o,,,,r,4 }Iqmrnof' 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 in the Municipality during the taxable period to the average net book value of all the real and tangible person property owned or used by the taxpayer in the business or profession during the same period, wherever situated. As used in subsection (a) hereof, real property includes property rented or leased by the taxpayer and the vafue 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 person employed in the business or profession for services perFormed in the Municipality 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 Municipality to gross receipts of the business or profession during the same period from sales and services, wherever made or performed. . (2) In the event that the foregoing allocation formula does not produce an equitable result, the Administrator may approve the use of books and records as a substitute method, by applving the followinq: (a). The net profits allocable to the Municipality from business, profession or other activities conducted in the Municipality by corporations or unincorporated entities (whether resident or non-resident) may be determined from the records of the taxpayer only if the taxpayer has bona fide records which disclose with reasonable accuracy what portion of his netprofits is attributable to that part of his activities conducted within the Municipality_ (b). If the books and records of the taxpayer are used as the basis for apportioninq net profits, a statement must accom.pany the return explaining the manner in which such aeportionment is made in sufficient detail to enable the Administrator to determined whether the net profits attributable to the Municipality are apportioned with reasonable accuracLr.