(a) Net profit from a business or profession conducted both within and without the boundaries of the Village of Wellington shall be considered as having a taxable situs in the Village of Wellington for purposes of income taxation 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 of Wellington 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.
As used in the preceding paragraph, real property shall include 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 of Wellington to 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 Village of Wellington to gross receipts of the business or profession during the same period from sales, and services, wherever made or performed.
In the event that the foregoing apportionment 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 this subsection, “Sales made in the Village of Wellington” mean:
(1) All sales of tangible personal property which is delivered within the Village of Wellington regardless of where title passes if shipped or delivered from a stock of goods within such Village.
(2) All sales of tangible personal property which is delivered within the Village of Wellington regard less of where title passes even though transported from a point outside such Village if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the Village of Wellington 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 of Wellington to purchasers outside such 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 were delivery is made.
(c) The portion of a net operating loss sustained in any taxable year, beginning with the year 2005, apportioned to the Municipality may be applied against the portion of the profit of succeeding tax years apportioned to the Municipality, until exhausted, but in no event for more than the three (3) taxable years immediately following the year in which the loss occurred. No portion of a net operating loss shall be carried back against net profits of any prior year. The portion of a net operating loss sustained shall be apportioned to the Municipality in the same manner as provided here in for apportioning net profits to the Municipality. The net operating loss of a taxpayer that loses its legal identity, by any means such as a merger or consolidation, shall not be allowed as a carryforward loss deduction to the surviving or new taxpayer. The net operating loss sustained by a business or profession is not deductible from employee earnings. However, if a taxpayer is engaged in two or more taxable business activities to be included in the same return, the net loss of one unincorporated business activity (except any portion of a loss reportable for municipal income tax purposes to another municipality) may be used to offset the profits of another for purposes of arriving at overall net profits.
(Ord. 2004-64. Passed 12-20-04.)