Where a person conducts a business both within and outside the municipality, the portion of the entire net profits of such business to be allocated as having been made within the municipality may be determined from the records of such business if such business has bona fide records which disclose with reasonable accuracy what portion of its net profits is attributable to that part of its activities conducted within the municipality, or, at the option of the taxpayer, may be determined by the following formula, which shall be used if the taxpayer has no bona fide records showing net profits from Lockland business activities, subject, however, to the provisions of division (b):
(a) Multiply the entire net profits of the business by a business allocation percentage to be determined by:
(1) Ascertaining the percentage which the average net book value of the real and tangible personal property owned or used in the business and situated within the municipality, during the period covered by the return, is of the average net book value of all the real and tangible personal property owned or used in the business, wherever situated, during such period;
(2) Ascertaining the percentage which the gross receipts of the business from sales made and services performed in the municipality, during the period covered by the return, is of the total gross receipts from all sales and services, wherever made or performed, during such period;
(3) Ascertaining the percentage which the total wages, salaries, commissions and other compensation paid during the period covered by the return, to employees for services performed in the municipality, is of the total wages, salaries, commissions and other compensation paid, during such period, to all employees within and outside the municipality;
(4) Adding together the percentages determined in accordance with divisions (a)(1) through (3), or such of the aforesaid percentages as are applicable to the particular taxpayer, and dividing the total so obtained by the number of percentages used in deriving such total.
(5) A factor is applicable even though it may be allocable entirely in or outside the municipality.
(b) However, if a just and equitable result cannot be obtained under the formula provided for herein, the Board of Review, upon application of the taxpayer, or the Tax Commissioner, shall, under uniform regulations adopted by the Board, have the authority to substitute other factors or methods calculated to effect a fair and proper allocation.
(Ord. 1455, passed 5-17-1967)