(A) Except as provided in division (C) of this section, gross receipts shall be apportioned as follows for business entities with sales revenue in more than one tax district, by multiplying the gross receipts by the sales factor as set forth in division (B) of this section.
(B) The sales factor is a fraction, the numerator of which is the total sales revenue of the business entity in the city during the tax period, and the denominator of which is the total sales revenue of the business entity everywhere during the tax period.
(1) The sale, lease or rental of tangible personal property is in the city if:
(a) The property is delivered or shipped to a purchaser, other than the United States government, or to the designee of the purchaser within the city regardless of the f.o.b. point or other conditions of the sale; or
(b) The property is shipped from an office, store, warehouse, factory or other place of storage in the city and the purchaser is the United States government.
(2) Sales revenues, other than revenues from the sale, lease or rental of tangible personal property or the lease or rental of real property, are apportioned to the city based upon a fraction, the numerator of which is the time spent in performing the income-producing activity within the city, and the denominator of which is the total time spent performing that income-producing activity.
(3) Sales revenue from the sale, lease or rental of real property is allocated to the tax district where the property is located.
(C) If the apportionment provisions of this section do not fairly represent the extent of the business entity’s activity in the city, the business entity may petition the city or the city may require, in respect to all or any part of the business entity’s business activity, if reasonable:
(1) Separate accounting;
(2) The exclusion of any one or more of the factors;
(3) The inclusion of one or more additional factors which will fairly represent the business entity’s business activity in the city; or
(4) The employment of any other method to effectuate an equitable allocation and apportionment of gross receipts.
(D) All partnerships, corporations and all other entities where income is “passed through” to the owners, are subject to this chapter. The business license tax imposed in this chapter is assessed against income before it is “passed through” these entities to the owners.
(E) If any business entity dissolves, ceases to operate or withdraws from the city during any taxable year, or if any business entity in any manner surrenders or loses its charter during any taxable year, the dissolution, cessation of business, withdrawal or loss or surrender of charter shall not defeat the filing of returns and the assessment and collection of any business license tax for the period of that taxable year during which the business license tax for the period of that taxable year during which the business entity had business activity in the city.
(F) If a business entity makes, or is required to make, a federal income tax return, the business license tax shall be computed for the purposes of this chapter on the basis of the same calendar or fiscal year required by the federal government, and shall employ the same methods of accounting required for federal income tax purposes.
(Ord. 28-2007, passed 12-3-2007)