A. Basis.
1. Resident employee.
a. In the case of residents of the village, an annual tax of 1.5% is imposed on all salaries, wages, commissions, and other compensation earned during the effective period of the ordinance. For the purpose of determining the tax on the earnings of resident taxpayers taxed under § 40.03, the source of the earnings and the place or places in or at which the services were rendered, are immaterial. All such earnings wherever earned or paid are taxable.
b. The following are items which are subject to the tax imposed by § 40.03(A)(1):
.1 Salaries, wages, bonuses, and incentive payments earned by an individual whether directly or through an agent and whether in cash or in property for services rendered during the tax period as:
.01 An officer, director, or employee of a corporation (including charitable and other nonprofit organizations), joint stock association, or joint stock company;
.02 An employee (as distinguished from a partner or member) of a partnership, limited partnership, or any form of unincorporated enterprise owned by two or more persons;
.03 An employee (as distinguished from a proprietor) of a business, trade, or profession conducted by an individual owner;
.04 An officer or employee (whether elected, appointed or commissioned) of the United States government or of a corporation created and owned or controlled by the United States government, or any of its agencies; or of the state of Ohio or any of its political subdivisions or agencies thereof; or any foreign country or dependency, except as provided in § 40.03;
.05 An employee of any other entity or person, whether based upon hourly, daily, weekly, semi-monthly, monthly, annual, unit of production, or piece work rates; and whether paid by an individual, partnership, association, corporation (including charitable and other nonprofit corporations), governmental administration, agency, authority, board, body, branch, bureau, department, division, subdivision, section or unit, or any other entity.
.2 Commissions earned by a taxpayer whether directly or through an agent and whether in cash or in property for services rendered during the effective period of the ordinance, regardless of how computed or by whom or wheresoever paid.
.01 If amounts received as a drawing account exceed the commissions earned and the excess is not subject to the demand of the employer for repayment, the tax is payable on the amounts received as a drawing account.
.02 Amounts received from an employer for expenses and used as such by the individual receiving them are not deemed to be compensation if the employer deducts such expenses or advances as such from his gross income for the purpose of determining his net profits taxable under federal law, and the employee is not required to include such receipts as income on his federal income tax return.
.03 If commissions are included in the net earnings of the trade, business, profession, enterprise, or activity, carried on by an unincorporated entity of which the individual receiving such commission is owner or part owner and therefore subject to the tax §§ 40.03(A)(3) and (4), they shall not be taxed under § 40.03(A)(1).
.3 Fees, unless such fees are properly includible as part of the net profits of a trade, business, profession, or enterprise regularly carried on by an unincorporated entity owned or partly owned by said individual and such net profits are subject to the tax under § 40.03(A)(3).
.4 Other compensation, including tips, bonuses, or gifts of any type, and including compensation paid to domestic servants, casual employees, and other types of employees.
.5 Payments made to employees by an employer as vacation wages are taxable. Payments made to an employee by an employer under a wage continuation plan during periods of disability or sickness, are taxable.
c. Where compensation is paid or received in property, its fair market value at the time of receipts shall be subject to the tax and to withholding. Board, lodging, and similar items received by an employee in lieu of additional cash compensation shall be included in earnings at their fair market value.
.1 In the case of domestics and other employees whose duties require them to live at their place of employment or assignment, board and lodging shall not be considered as wages or compensation earned.
2. Nonresident employee.
a. In the case of individuals who are not residents of the village, there is imposed under § 40.03(A)(2) a tax of 1.5%) on all salaries, wages, commissions, and other compensation earned during the effective period of the ordinance for work done or services performed or rendered within the village, whether such compensation or remuneration is received or earned directly or through an agent and whether paid in cash or in property. The location of the place from which payment is made is immaterial.
b. The items subject to tax under § 40.03(A)(2) are the same as those listed and defined in this Article III-A. (For the methods of computing the extent of such work or services performed within the village, in cases involving compensation for personal services partly within and partly without the village, see Article VI.A.6.)
3. Resident unincorporated business.
a. Imposition of tax on net profits of resident unincorporated businesses.
.1 In the case of resident unincorporated businesses, professions, enterprises, undertakings, or other entities conducted, operated, engaged in, prosecuted, or carried on irrespective of whether such taxpayer has an office or place of business in the village, there is imposed an annual tax of 1.5% on the net profits earned, accrued or received during the effective period of the ordinance attributable to village, under the formula or separate accounting method provided for in § 40.03, derived from sales made, work done, or services performed or rendered, and business or other activities conducted in the village.
.2 The tax imposed on resident associations or other unincorporated entities owned by two or more persons is upon the entities rather than the individual members or owners thereof, but the tax imposed on an unincorporated resident entity owned by one person is upon the individual owner. (For tax on that part of a resident owner's distributive share of net profits not taxed against the entity, see Article III.A.3.b.)
.3 The tax imposed by § 40.03(A)(3)(a) is imposed on all resident unincorporated entities having net profits attributable to the village under the method of allocation provided for in the ordinance, regardless of where the owner or owners of such resident unincorporated business entity reside.
.4 Resident unincorporated entities owned by two or more persons all of whom are residents of the village shall disregard the method of allocation provided for in the ordinance and pay the tax on their entire net profits thereof. In such case, the tax paid by the entity shall constitute all tax due from the owners or members of the entity for their distributive share of such net profits; however, an additional return shall be required from any such owner or member having taxable income other than the distributive share of the net profits from the entity.
b. Imposition of tax on a resident's distributive share of profits of a resident unincorporated business entity, not attributable to the village.
.1 A resident individual who is sole owner of a resident unincorporated entity shall disregard the business allocation formula and pay the tax on the entire net profits of his resident unincorporated business entity.
.2 In the case of a resident individual partner or part owner of a resident unincorporated entity, there is imposed an annual tax of 1.5% on such individual's distributive share of net profits earned, accrued, or received during the effective period of the ordinance not attributable to the village, under the method of allocation provided for in § 40.03, and not taxed against the entity.
(See Article XIV.)
4. Nonresident unincorporated business.
a. Imposition of tax on net profits of nonresident unincorporated businesses.
.1 In the case of nonresident unincorporated businesses, professions, enterprises, undertakings, or other activities conducted, operated, engaged in, prosecuted, or carried on, there is imposed an annual tax of 1.5% on the net profits earned, accrued, or received during the effective period of the ordinance attributable to the village, under the formula or separate accounting method provided for in the ordinance.
.2 The tax imposed on nonresident unincorporated entities owned by two or more persons is upon the entities rather than the individual members or owners thereof. (For tax on that part of a resident owner's distributive share of net profits not taxed against the entity, see Article III.A.4.b.
.3 Nonresident unincorporated entities owned by two or more persons all of whom are residents of the village may elect to disregard the method of allocation provided for in the ordinance and pay the tax on the entire net profits. In such case, the tax paid by the entity shall constitute all tax due from the owners or members of the entity for their distributive share of the net profits; however, a return shall be required from such owner or member having taxable income other than the distributive share of the net profit from the entity. (See Article XIV for credits.)
b. Imposition of tax on resident's share of profits of a nonresident unincorporated business entity not attributable to the village. (See Article XIV for credits.)
.1 A resident individual who is sole owner of a nonresident unincorporated business entity shall disregard the business allocation formula and pay the tax on the entire net profits of his unincorporated entity.
.2 In the case of a resident individual partner or part owner of a nonresident unincorporated entity, there is imposed an annual tax of 1.5% on such individual's distributive share of net profits earned, accrued, or received during the effective period of the ordinance not attributable to the village under the method of allocation provided for in § 40.03 and not taxed against the entity.
5. Imposition of tax on net profits of corporations.
a. In the case of corporations, whether domestic or foreign and whether or not such corporations have an office or place of business in the village, there is imposed an annual tax of 1.5% on the net profits earned, received, or accrued during the effective period of the ordinance attributable to the village under the formula or separate accounting method provided for in the ordinance.
b. In determining whether a corporation is conducting a business or other activity in the village, the provisions of Article III.B. of these regulations shall be applicable.
c. Corporations which are required by the provisions of R.C. §§ 5727.38 through 5727.41, inclusive, to pay an excise tax in any taxable year as defined by the ordinance, may exclude that part of their gross receipts upon which the excise tax is paid. In such case, expenses incurred in the production of such gross receipts shall not be deducted in computing net profits subject to the tax imposed by the ordinance.
6. Amplification. In amplification of the definition contained in Article II of these regulations but not in limitation thereof, the following additional information respecting net business profits is furnished.
a. Net profits.
.1 Net profits as used in the ordinance and these regulations means net profits derived from any business, profession, or other activity or undertaking carried on for profit or normally carried on for profit.
.2 Net profits as disclosed on any return filed pursuant to the provisions of the ordinance shall be computed by the same accounting method used in reporting net income to the federal internal revenue service (provided that such method does not conflict with any provisions of the ordinance). Net profits, shown on returns filed pursuant to the ordinance must be reconciled with the income reported to the federal Internal Revenue Service.
b. Gross receipts.
.1 Gross receipts shall include but not be limited to income in the form of commissions, fees, rentals from real and tangible personal property, and other compensation for work or services performed or rendered as well as income from sales of stock in trade.
.2 From gross receipts there shall be deducted allowable expenses to arrive at the net profit subject to tax.
c. Expenses.
.1 All ordinary and necessary expenses of doing business, including reasonable compensation paid employees, shall be allowed, but no deduction may be claimed for salary or withdrawal of a proprietor or of the partners, members, or other owners of an unincorporated business or enterprise.
.01 If not claimed as part of the cost of goods sold or elsewhere in the return filed, there may be claimed and allowed a reasonable deduction for depreciation, depletion, obsolescence, losses resulting from theft or casualty, not compensated for by insurance or otherwise of property used in the trade or business, but the amount may not exceed that recognized for the purpose of the federal income tax, provided, however, that loss on the sale, exchange, or other disposition of depreciable property or real estate, used in the taxpayer's business shall not be allowed as a deductible expense.
.02 Current amortization of emergency facilities under the provisions of the internal revenue code, if recognized as such for federal income tax purposes, may be included as an expense deduction hereunder.
.03 Where depreciable property is voluntarily destroyed only the cost of such demolition and the undepreciated balance thereof will be allowed as an expense in the year of such demolition, to the extent allowable for federal income tax purposes.
.04 Bad debts in a reasonable amount may be allowed in the year ascertained worthless and charged off, or at the discretion of the Commissioner (if the reserve method is used), a reasonable addition to the reserve may be claimed, but in no event shall the amount exceed the amount allowable for federal income tax purposes.
.05 Only taxes directly connected with the business may be claimed as a deduction. If for any reason the income from property is not subject to the tax, then taxes on and other expenses of said property are not deductible. In any event, the following taxes are not deductible from income: (1) the tax under the ordinance; (2) federal or other taxes based upon income; (3) gift, estate, or inheritance taxes; and (4) taxes for local benefits or improvements to property which tend to appreciate the value thereof.
.06 In general, nontaxable income and expenses incurred in connection therewith are not to be considered in determining net profits. Income from intangibles, by way of dividends, interest, and the like shall not be included if such income is subject to taxation under the intangible personal property laws of the state or is specifically exempt from taxation under said law.
.07 If the taxpayer reports income that is nontaxable under the ordinance and such amounts are deducted in order to reconcile the village return with the taxpayer's federal income tax return, expenses attributable to this nontaxable income shall not be allowed. In the absence of records showing the actual expenses attributable to such nontaxable income, and upon approval of the Commissioner, such amount shall be deemed to equal 5% of such nontaxable income.
.08 With respect to certain tangible personal property used in business, the “federal investment credit” for current year investments, as determined for federal income tax purposes, shall be treated as a deduction from income with respect to new or used property, (subject to federal tax limitations in the case of used property, acquired after December 31, 1961,) and the remaining costs shall be depreciated in succeeding years on the same basis used for federal income tax purposes. In the event the “federal investment credit” is required to be adjusted by reason of a sale or other early disposition affecting the original amount of the “federal investment credit,” such adjustment must be reported and treated as taxable income under the ordinance in the year of such sale or other early disposition.
.09 Capital gains and losses from sale, exchange, or other disposition of property shall not be taken into consideration in arriving at net profits earned. Any amount received on a sale or other disposition of tangible personal property used in business, in excess of book value, shall be treated as taxable income under the ordinance to the extent of depreciation allowable after January 1, 1974. The balance shall be treated as a capital gain.
7. Rentals from real property.
a. Rentals received by the taxpayer are to be included only if and to the extent that the rental, ownership, management, or operation of the real estate from which such rentals are derived (whether so rented, managed, or operated by the taxpayer individually or through agents or other representatives) constitutes a business activity of the taxpayer in whole or in part.
b. In determining the amount of gross monthly rental of any real property, periods during which (by reason of vacancy or any other cause) rentals are not received shall not be taken into consideration by the taxpayer.
c. Rentals received by a taxpayer engaged in the business of buying and selling real estate shall be considered as part of business income.
d. Real property, as the term is used in this regulation, shall include commercial property, residential property, farm property, and any and all other types of real estate.
e. In determining the taxable income from rentals, the deductible expenses shall be of the same nature, extent, and amount as are allowed by the Internal Revenue Service for federal income tax purposes.
f. Residents of the village are subject to taxation upon the net income from rental (to the extent above specified), regardless of the location of the real property owned.
g. Nonresidents of the village are subject to such taxation only if the real property is situated within the village.
h. Corporations owning or managing real estate are taxable only on that portion of income derived from property located in the village.
8. Patents and copyrights.
a. Income from patents or copyrights is not to be included in net profits subject to the tax if the income from such patents or copyrights is subject to the state intangible tax. Conversely, such a state intangible tax is not deductible in determining village tax. Such items shall be clearly disclosed on an attachment to be filed with the village tax return.
B. Allocation of business profits.
A request to change the method of allocation must be made in writing before the end of the taxable year.
1. Separate accounting method
a. The net profits allocable to the village from business, professional, or other activities conducted in the village bremen by corporations or unincorporated entities (whether resident or nonresident) may be determined from the records of the taxpayer, if taxpayer has bona fide records which disclose with reasonable accuracy what portion of his net profits is attributable to that part of his activities conducted within the village.
b. If the books and records of the taxpayer are used as the basis for apportioning net profits rather than the business allocation formula, a statement must accompany the return explaining the manner in which such apportionment is made in sufficient detail to enable the Commissioner to determine whether the net profits attributable to the village are apportioned with reasonable accuracy.
c. In determining the income allocable to the village from the books and records of a taxpayer, an adjustment may be made for the contribution made to the production of such income by headquarters activities of the taxpayer, whether such headquarters is within or without the village.
2. Business allocation percentage method.
a. Step 1: Ascertain the percentage which the average net book value of real and tangible personal property, including leasehold improvements owned or used in the business and situated within the village, is of the average net book value of all real and tangible personal property, including leasehold improvements owned or used in the business wherever situated, during the period covered by the return.
.1 The percentage of taxpayer's real and tangible personal property within the village is determined by dividing the average net book value of such property within the village (without deduction of any encumbrances) by the average net book value of all such property within and without the village. In determining such percentage, property rented to the taxpayer as well as real and tangible personal property owned by taxpayer must be considered.
.01 The net book value of real and tangible personal property rented by taxpayer shall be determined by multiplying gross annual rents payable by eight.
.02 Gross rents means the actual sum of money or other consideration payable, directly or indirectly, by the taxpayer for the use or possession of property and includes:
.001 Any amount payable for the use or possession of real and tangible personal property or any part thereof, whether designated as a fixed sum of money or as a percentage of sales profits or otherwise;
.002 Any amount payable as additional rent or in lieu of rent such as interest, taxes, insurance, repairs, or other amounts required to be paid by the terms of a lease or other arrangements.
b. Step 2: Ascertain the percentage which the gross receipts of the taxpayer derived from sales made and service rendered in the village is of the total gross receipts wherever derived during the period covered by the return.
.1 The following sales shall be considered the village sales:
.01 All sales made through retail stores located within the village to purchasers within or without the village, except such of said sales to purchasers outside the village that are directly attributable to regular solicitations made outside the village personally by taxpayer's employees.
.02 All sales of tangible personal property delivered to purchasers within the village if shipped or delivered from an office, store, warehouse, factory, or place of storage located within the village.
.03 All sales of tangible personal property delivered to purchasers within the village even though transported from a point outside the village, if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the village and the sale is directly or indirectly the result of such solicitation.
.04 All sales of tangible personal property shipped from an office, store, warehouse, factory, or place of storage within the village to purchasers outside the village, if the taxpayer is not, through its own employees regularly engaged in the solicitation or promotion of sales at the place of delivery.
.05 Charges for work done or services performed incident to a sale, whether or not included in the price of the property shall be considered gross receipts from such sale.
.2 In the application of the foregoing subparagraphs a carrier shall be considered the agent of the seller regardless of the F.O.B. point or other conditions of the sale, and the place at which orders are accepted or contracts legally consummated shall be immaterial. Solicitation of customers outside the village by mail or phone from an office, or place of business within the village shall not be considered a solicitation of sales outside the village.
c. Step 3: Ascertain the percentage which the total wages, salaries, commissions, and other compensation of employees within the village is of the total wages, salaries, commissions, and other compensation of all the taxpayer's employees within and without the village during the period covered by the return.
.1 Salaries and reasonable compensation paid owners or credited to the account of owners or partners during the period covered by the return are considered wages for the purpose of this computation.
.2 Wages, salaries, and other compensation shall be computed on the cash or accrual basis in accordance with the method of accounting used in the computation of the entire net income of the taxpayer.
.3 In the case of an employee who performs services both within and without the village, the amount treated as compensation for services performed within the city shall be deemed to be:
.01 In the case of an employee whose compensation depends directly on the volume of business secured by him, such as a salesman on a commission basis, the amount received by him for the business attributable to his efforts within the village.
.02 In the case of an employee whose compensation depends on other results achieved, the proportion of the total compensation received which the value of his services within the village bears to the value of all his services; and
.03 In the case of an employee compensated on a time basis, the proportion of the total amount received by him which his working time within the village is of his total working time.
d. Step 4: Add the percentages determined in accordance with steps 1, 2 and 3 or such of the aforesaid percentages as may be applicable to the particular taxpayer's business and divide the total so obtained by the number of percentages used in ascertaining said total. The result so obtained is the business allocation percentage. In determining the average percentage, a factor shall not be excluded from the computation merely because said factor is found to be allocable entirely outside the village. A factor is excluded only when it does not exist anywhere.
e. Step 5: The business allocation percentage determined in step 4 above shall be applied to the entire taxable net profits of the taxpayer wherever derived to determine the net profits allocable to the village.
3. Substitute method.
a. In the event a just and equitable result cannot be obtained under the formula, the Board, upon application of the taxpayer or the Commissioner, may substitute other factors in the formula or prescribe other methods of allocating net income calculated to effect a fair and proper allocation.
b. Application to the Board to substitute other factors in the formula or to use a different method to allocate net profits must be made in writing before the end of the taxable year and shall state the specific grounds on which the substitution of factors or use of a different method is requested and the relief sought to be obtained. A copy thereof shall be served at the time of filing upon the taxpayer or Commissioner as the case may be. No specific form need be followed in making such application. Once a taxpayer has filed under a substitute method, he must continue to so file until given permission to change by the Board of Review.
C. Operating loss carry forward.
1. The portion of a net operating loss, based on income taxable under the ordinance sustained in any taxable year subsequent to January 1, 1974, allocable to the village, may be applied against the portion of the profits of succeeding years allocable to the village until exhausted but in no event of more than five taxable years. No portion of a net operating loss shall be carried back against net profits of any prior year.
2. In the event net profits are allocable both within and without the village, the portion of a net operating loss sustained shall be allocated to the village in the same manner as provided herein for allocating net profits to the village. The portion of a net operating loss to be carried forward shall be determined in the year the net operating loss is sustained, on the basis of the allocation factors applicable to that year. The same method of accounting and allocation must be used in the year to which an operating loss is carried as was used in the year in which the operating loss was sustained.
3. In the case of fiscal years beginning prior to the effective date of the ordinance, the net operating loss deduction will be that portion of the operating loss that the number of months of the fiscal year after the effective date of the ordinance bears to the total number of months in such fiscal year.
4. A short fiscal year (a fiscal year of less than twelve (12) months) in cases where there has been a change in accounting period, where a new taxpayer selects a short fiscal year, or where a new taxpayer operated in the village for less than his full accounting period, shall be considered as a full taxable fiscal year.
5. In any return in which a net operating loss deduction is claimed, a schedule should be attached showing:
a. Year in which net operating loss was sustained;
b. Method of accounting and allocation used to determine portion of net operating loss allocable to the village;
c. Amount of net operating loss used as a deduction in prior years; and
d. Amount of net operating loss claimed as a deduction in current year.
6. The net operating loss of a business which loses its identity through merger, consolidation, etc. shall not be allowed as a carry-forward loss deduction to the surviving business entity.
7. In the case of a net operating loss in the filing of consolidated returns, see Article III.D.
D. Consolidated returns.
1. Consolidated returns may be filed by a group of corporations who are affiliated through stock ownership. For a subsidiary corporation to be included in a consolidated return, 80% of its stock must be owned by the other members of the affiliated group. A consolidated return must include all companies which are so affiliated.
2. Once a consolidated return has been filed for any taxable year, the consolidated group must continue to file consolidated returns in subsequent years unless:
a. Permission in writing is granted by the Commissioner to file separate returns;
b. A new corporation other than a corporation created or organized by a member of the group has become a member of the group during the taxable year;
c. A corporation member of the group is sold or exchanged. Liquidating a corporation or merging one of the corporations of the group into another will not qualify the group for filing separate returns.
3. If a corporation becomes a member of the group during the taxable year, the consolidated return must include the income for the entire taxable year of the common parent corporation and any subsidiaries which were members of the group for the entire year, plus the income of each subsidiary which becomes a member of the group during the year for the period beginning with the date it became a member of the affiliated group. For the period prior to the time any subsidiary became a member of the group, separate returns must be filed for that subsidiary. When a subsidiary ceases to be a member of the affiliated group, the consolidated return must include the income of such subsidiary for the period during which it was a member of the group, but for the period after it ceases to be a member, separate returns must be filed. If a corporation has been a member of the affiliated group for less than one month of the taxable year of the group, it may be considered as not being part of the group. Similarly, a subsidiary may be considered as being a member of the affiliated group during the entire taxable year of the group, if the period during which it was not a member of the group does not exceed one month.
If a subsidiary is a member of the consolidated group for only part of a taxable year, the income considered to be earned in such fractional part of the year shall be that portion of the net income for the entire year which the number of days it was a member of the group bears to the total number of days in the taxable year.
4. In determining the allocation fraction where a corporation becomes a member of the group or ceases to be a member of the group during the taxable year, the property fraction (step 1 of the formula) shall be determined on the basis of the average net book value of the property during the period such corporation was a member of the group. The rental portion of the fraction, however, shall be computed at eight times the annual rent. The gross receipts and wage fractions shall be based on the actual figures.
5. All subsidiary corporations must agree in writing to the filing of the consolidated return as they will be liable for the tax as well as will be the parent corporation.
6. The net operating loss carryover of a corporation which filed a separate return in a prior year may be carried over to the consolidated return but will be limited in amount to the amount of that same corporation's net income included in the consolidation. The net operating loss carryover from a separate year shall be deducted first before application of the allocation fraction. After application of the allocation fraction the consolidated net operating loss carryover allocated to the village shall be allowed.
7. In consolidating the net income, the taxable income of each corporation shall be computed in accordance with the provisions governing the taxable income of separate corporations, except that there shall be eliminated unrealized profits and losses in transactions between members of the affiliated group.
8. In determining expenses that are not allowable because they are allocable to nontaxable income, such calculations shall be based on the consolidated net income. As an example, inter-company dividends which are eliminated in the consolidation will not be taken into consideration in determining nontaxable income.
E. Exceptions.
The following shall not be considered taxable:
1. Poor relief, unemployment insurance benefits, supplemental unemployment benefits, old age pensions, or similar payments received from local, state, or federal governments or charitable or religious organizations.
2. Proceeds of insurance, annuities, worker's compensation insurance, social security benefits, pensions, compensation for damages for personal injuries and like reimbursement, not including damages for loss of profits.
3. Compensation for damage to property by way of insurance or otherwise.
4. Interest and dividends from intangible property.
5. Military pay and allowances received as a member of the armed forces of the United States.
6. Any charitable, educational, fraternal, or other type of nonprofit association or organization enumerated in R.C. § 718.01 which is exempt from payment of real estate taxes is exempt from payment of the tax imposed by this ordinance.
7. Any association or organization falling in the category listed in the preceding paragraph not exempt from the payment of real estate taxes is required to file declarations and final returns and remit the taxes levied under this ordinance on all business activities of a type ordinarily conducted for profit by taxpayers operating for profit.
8. Where such nonprofit association or organization conducts income producing business both within and without the corporate limits, it shall calculate its profits allocable to the village under the method or methods provided above.