§ 15-118 — Allocation to City

New York § 15-118

• Jurisdiction: New York
• Law YTS: Yonkers income tax surcharge
• Art. 10: Earnings Tax On Nonresidents

Text

§ 15-118. Allocation to City.\n A. General. If net earnings from self-employment are derived from\nservices performed or from sources within and without the City of\nYonkers, there shall be allocated to the City of Yonkers a fair and\nequitable portion of such earnings.\n B. Allocation of net earnings from self-employment.\n (1) Place of business. If a taxpayer has no regular place of business\noutside the City of Yonkers, all of his/her net earnings from\nself-employment shall be allocated to the City of Yonkers.\n (2) Allocation by taxpayer's books. The portion of net earnings from\nself-employment allocable to the City of Yonkers may be determined from\nthe books and records of a taxpayer's trade or business, if the methods\nused in keeping such books and the accuracy thereof are approved by the\nState Tax Commission as fairly and equitably reflecting net earnings\nfrom self-employment within the City of Yonkers.\n (3) Allocation by formula. If Subsection B(2) of this section does not\napply to the taxpayer, the portion of net earnings from self-employment\nallocable to the City of Yonkers shall be determined by multiplying net\nearnings from self-employment, within and without the City of Yonkers,\nby the average of the following three percentages:\n (a) Property percentage. The percentage computed by dividing the\naverage of the value, at the beginning and end of the taxable year, of\nreal and tangible personal property connected with the net earnings from\nself-employment and located within the City of Yonkers by the average of\nthe value, at the beginning and end of the taxable year, of all real and\ntangible personal property connected with the net earnings from\nself-employment and located both within and without the City of Yonkers.\nFor this purpose, "real property" shall include real property, whether\nowned or rented.\n (b) Payroll percentage. The percentage computed by dividing the total\nwages, salaries and other personal service compensation paid or incurred\nduring the taxable year to employees in connection with the net earnings\nfrom self-employment derived from a trade or business carried on within\nthe City of Yonkers by the total of all wages, salaries and other\npersonal service compensation paid or incurred during the taxable year\nto employees in connection with the net earnings from self-employment\nderived from a trade or business carried on both within and without the\nCity of Yonkers.\n (c) Gross income percentage. The percentage computed by dividing the\ngross sales or charges for services performed by or through an agency\nlocated within the City of Yonkers by the total of all gross sales or\ncharges for services performed within and without the City of Yonkers.\nThe sales or charges to be allocated to the City of Yonkers shall\ninclude all sales negotiated or consummated, and charges for services\nperformed, by an employee, agent, agency or independent contractor\nchiefly situated at, connected by contract or otherwise with or sent out\nfrom offices or other agencies of the trade or business from which a\ntaxpayer is deriving net earnings from self-employment, situated within\nthe City of Yonkers.\n C. Other allocation methods. The portion of net earnings from\nself-employment allocable to the City of Yonkers shall be determined in\naccordance with rules and regulations of the State Tax Commission if it\nshall appear to the Tax Commission that the net earnings from\nself-employment are not fairly and equitably reflected under the\nprovisions of Subsection B of this section.\n D. Special rules for real estate. Income and deductions from the\nrental of real property and gain and loss from the sale, exchange or\nother disposition of real property shall not be subject to allocation\nunder Subsection B or C of this section but shall be considered as\nentirely derived from or connected with the place in which such property\nis located.\n