N.Y. Yonkers income tax surcharge § 15-118: Allocation to City

§ 15-118. Allocation to City.

A. General. If net earnings from self-employment are derived from

services performed or from sources within and without the City of

Yonkers, there shall be allocated to the City of Yonkers a fair and

equitable portion of such earnings.

B. Allocation of net earnings from self-employment.

(1) Place of business. If a taxpayer has no regular place of business

outside the City of Yonkers, all of his/her net earnings from

self-employment shall be allocated to the City of Yonkers.

(2) Allocation by taxpayer's books. The portion of net earnings from

self-employment allocable to the City of Yonkers may be determined from

the books and records of a taxpayer's trade or business, if the methods

used in keeping such books and the accuracy thereof are approved by the

State Tax Commission as fairly and equitably reflecting net earnings

from self-employment within the City of Yonkers.

(3) Allocation by formula. If Subsection B(2) of this section does not

apply to the taxpayer, the portion of net earnings from self-employment

allocable to the City of Yonkers shall be determined by multiplying net

earnings from self-employment, within and without the City of Yonkers,

by the average of the following three percentages:

(a) Property percentage. The percentage computed by dividing the

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

real and tangible personal property connected with the net earnings from

self-employment and located within the City of Yonkers by the average of

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

tangible personal property connected with the net earnings from

self-employment and located both within and without the City of Yonkers.

For this purpose, "real property" shall include real property, whether

owned or rented.

(b) Payroll percentage. The percentage computed by dividing the total

wages, salaries and other personal service compensation paid or incurred

during the taxable year to employees in connection with the net earnings

from self-employment derived from a trade or business carried on within

the City of Yonkers by the total of all wages, salaries and other

personal service compensation paid or incurred during the taxable year

to employees in connection with the net earnings from self-employment

derived from a trade or business carried on both within and without the

City of Yonkers.

(c) Gross income percentage. The percentage computed by dividing the

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

located within the City of Yonkers by the total of all gross sales or

charges for services performed within and without the City of Yonkers.

The sales or charges to be allocated to the City of Yonkers 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 or other agencies of the trade or business from which a

taxpayer is deriving net earnings from self-employment, situated within

the City of Yonkers.

C. Other allocation methods. The portion of net earnings from

self-employment allocable to the City of Yonkers shall be determined in

accordance with rules and regulations of the State Tax Commission if it

shall appear to the Tax Commission that the net earnings from

self-employment are not fairly and equitably reflected under the

provisions of Subsection B of this section.

D. 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 Subsection B or C of this section but shall be considered as

entirely derived from or connected with the place in which such property

is located.