(a) In the taxation of income which is subject to Municipal income tax, if the books and records of a taxpayer conducting a business or profession both within and without the City disclose with reasonable accuracy what portion of its net profit is attributable to that part of the business or profession conducted within the City, then only such portion shall be considered as having a taxable situs in the City for the purposes of such tax. The portion of the entire net profits of a taxpayer to be allocated as having been derived from within the City shall, in the absence of actual records thereof, 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:
(1) The average net book value of the real and tangible personal property owned or used by the taxpayer in a business or profession in the City during the taxable period to the average net book value 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. As used in this paragraph, "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 City and wages, salaries and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed.
(3) Gross receipts of the business or profession from sales made and services performed during the taxable period in the City to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
If the foregoing allocation formula does not produce an equitable result, another basis may, under uniform regulations, be substituted so as to produce such result.
(b) As used in paragraph (a)(3) hereof, "sales made in the City" means all sales of tangible personal property which is:
(1) Delivered within the City, regardless of where title passes, if shipped or delivered from a stock of goods within the City;
(2) Delivered within the City, regardless of where title passes, even though transported from a point outside the City, if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the City and the sales result from such solicitation or promotion; or
(3) Shipped from a place within the City to purchasers outside of the City, 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 delivery is made.
(c) Add together the percentages determined in accordance with paragraphs (a) (1), (2) and (3) hereof, or such of the aforesaid percentages as are applicable to the particular taxpayer, and divide the total so obtained by the number of percentages used in deriving such total in order to obtain the business allocation percentage referred to in subsection (a) hereof.
A factor is applicable even though it may be allocable entirely in or outside the City.
(Ord. 1966-133. Passed 12-27-66.)