(a) Net profit from a business or profession conducted both within and without the boundaries of the Village shall be considered as having a taxable situs in the Village for purposes of this chapter in the same proportion as the average ratio of:
(1) The average original cost of the real and tangible personal property owned or used by the taxpayer in the business or profession in the Village during the taxable period to the average original cost of all the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated. Real property includes property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereon by eight.
(2) Wages, salaries, and other compensation paid during the taxable period to persons employed in the business or profession for services performed in the Village to salaries, and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed. For tax year 2004 and subsequent tax years, wages, salaries, and other compensation shall be included to the extent that they represent qualifying wages.
(3) Gross receipts of the business or profession from sales made and services performed during the taxable period in the Village to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
(4) In the event the foregoing allocation formula in divisions (a)(1) through (a)(3) of this section does not produce an equitable result, another basis (including the books and records method) may be substituted in an effort to achieve an equitable result.
(b) As used in this chapter, "sales made in the Village" means:
(1) All sales of tangible personal property which is delivered within the Village regardless of where title passes if shipped or delivered from a stock of goods within the Village.
(2) All sales of tangible personal property which is delivered within the Village regardless of where title passes even though transported from a point outside of the Village if the taxpayer is regularly engaged through its own employees in the solicitation of promotion of sales within the Village and the sales result from such solicitation or promotion.
(3) All sales of tangible personal property which is shipped from a place within the Village to purchasers outside the Village regardless of where title passes if the taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales at the place where title passes if the taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made.
(c) Consolidated returns.
(1) Any affiliated group which files a consolidated return for Federal income tax purposes pursuant to section 1501 of the Internal Revenue Code may file a consolidated return with the Village.
(2) In the case of a corporation that carried on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates, or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity with the Village constituting a portion only of its total business, the Income Tax Administrator shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to the Village. If the Income Tax Administrator finds net profits are not properly allocated to the Village by reason of transaction with stockholders or with other corporations related by stock ownership, interlocking directorates, or transactions with such division, branch, factory, office, laboratory or activity or by some other method, he shall make such allocation as he deems appropriate to produce a fair and proper allocation of net profits to the Village.
(d) Losses incurred from the operation of a business, including rental, may not be carried forward or backward.
(Ord. 1848. Passed 2-9-2009; Ord. 1981. Passed 12-15-2015; Ord. 1992. Passed 11-8-2016; Ord. 2007. Passed 12-12-2017.)