(a) (1) As used in this section:
A. “Qualifying remote employee or owner" means an individual who is an employee of a taxpayer or who is a partner or member holding an ownership interest in a taxpayer that is treated as a partnership for federal income tax purposes, provided that the individual meets both of the following criteria:
1. The taxpayer has assigned the individual to a qualifying reporting location.
2. The individual is permitted or required to perform services for the taxpayer at a qualifying remote work location.
B. "Qualifying remote work location" means a permanent or temporary location at which an employee or owner chooses or is required to perform services for the taxpayer, other than a reporting location of the taxpayer or any other location owned or controlled by a customer or client of the taxpayer. "Qualifying remote work location" may include the residence of an employee or owner and may be located outside of the City of Amherst. 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:
1. 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;
2. 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 Section 192.10 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:
1. 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;
2. If no reporting location exists in this state for an employee or owner under division (a)(1)D.1. 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;
3. If no reporting location exists in this state for an employee or owner under division (a)(1)D.1. or 2. 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 192.14 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 City of Amherst with which, after applying the apportionment provisions authorized in Section 192.14, 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 City of Amherst 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 City of Amherst solely because a qualifying remote employee's or owner's qualifying remote work location is located in the City of Amherst.
E. Nothing in this section prohibits a taxpayer from making a new election under this division after properly revoking a prior election.
A. For the purpose of Section 192.14(a)(1), the average original cost of any tangible personal property used by a qualifying remote employee or owner at that individual's qualifying remote work location shall be sitused to that individual's qualifying reporting location.
B. For the purpose of Section 192.14(a)(2), any wages, salaries, and other compensation paid during the taxable period to a qualifying remote employee or owner for services performed at that individual's qualifying remote work location shall be sitused to that individual's qualifying reporting location.
C. For the purpose of division Section 192.14(a)(3), and notwithstanding Section 192.14(d), any gross receipts of the business or profession from services performed during the taxable period by a qualifying remote employee or owner for services performed at that individual's qualifying remote work location shall be sitused to that individual's qualifying reporting location.
(4) Nothing in this division prevents a taxpayer from requesting, or the Tax Administrator from requiring, that the taxpayer use, with respect to all or a portion of the income of the taxpayer, an alternative apportionment method as described in Section 192.14. However, the Tax Administrator shall not require an alternative apportionment method in such a manner that it would require a taxpayer to file a net profit return with solely because a qualifying remote employee's or owner's qualifying remote work location is located in the City of Amherst.
(Ord. 24-09. Passed 2-26-24.)