N.Y. General City Model 772/66 § 107: Allocation to the city

§ 107. Allocation to the city. (a) General.--If an unincorporated

business is carried on both within and without the city, as determined

under regulations of the director of finance, there shall be allocated

to the city a fair and equitable portion of the excess of its

unincorporated business gross income over its unincorporated business

deductions. If the unincorporated business has no regular place of

business outside the city, all of such excess shall be allocated to the

city.

(b) Allocation by taxpayer's books.--The portion allocable to the city

may be determined from the books of the business if the methods used in

keeping such books are approved by the director of finance as fairly and

equitably reflecting the income from the city.

(c) Allocation by formula.--If subdivision (b) does not apply to the

taxpayer, the portion allocable to the city shall be determined by

multiplying (A) the excess of its unincorporated business gross income

over its unincorporated business deduction, by (B) the average of the

following three percentages:

(1) Property percentage.--The percentage computed by dividing (A) the

average of the value, at the beginning and end of the taxable year, of

real and tangible personal property connected with the unincorporated

business and located within the city, by (B) the average of the value,

at the beginning and end of the taxable year, of all real and tangible

personal property connected with the unincorporated business and located

both within and without the city. For this purpose, real property shall

include real property rented to the unincorporated business.

(2) Payroll percentage.--The percentage computed by dividing (A) the

total wages, salaries and other personal service compensation paid or

incurred during the taxable year to employees in connection with the

unincorporated business carried on within the city, by (B) the total of

all wages, salaries and other personal service compensation paid or

incurred during the taxable year to employees in connection with the

unincorporated business carried on both within and without the city.

(3) Gross income percentage.--The percentage computed by dividing (A)

the gross sales or charges for services performed by or through an

agency located within the city, by (B) the total of all gross sales or

charges for services performed within and without the city. The sales or

charges to be allocated to the city shall include all sales negotiated

or consummated, and charges for services performed, by an employee,

agent, agency or independent contractor chiefly situated at, connected

by contract or otherwise with, or sent out from, offices of the

unincorporated business, or other agencies, situated within the city.

(d) Other allocation methods.--The portion allocable to the city shall

be determined in accordance with rules and regulations of the director

of finance if it shall appear to the director of finance that the income

from the city is not fairly and equitably reflected under the provisions

of either subdivision (b) or subdivision (c).

(e) Special rules for real estate.--Income and deductions from the

rental of real property, and gain and loss from the sale, exchange or

other disposition of real property, shall not be subject to allocation

under subdivisions (b), (c), or (d), but shall be considered as entirely

derived from or connected with the state, other than this state, in

which such property is located or, if such property is located in this

state, the political subdivision thereof.