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gross proceeds from the sale are not indicative of the true value of the subject matter of the sale;the <br /> value shall correspond as nearly as possible to the gross proceeds from sales in this state of similar <br /> products of like quality and character, and in similar quantities by other taxpayers, plus the amount of <br /> subsidies or bonuses ordinarily payable by the purchaser or by any third person with respect to the <br /> extraction, manufacture, or sale of such products. In the absence of sales of similar products as a guide <br /> to value, such value may be determined upon a cost basis. In such cases,there shall be included every <br /> item of cost attributable to the particular article or article extracted or manufactured, including direct <br /> and indirect overhead costs.The director may prescribe rules for the purpose of ascertaining such <br /> values. <br /> 3. Notwithstanding subsection 2 above ,the value of a product manufactured or <br /> produced for purposes of serving as a prototype for the development of a new or improved product <br /> shall correspond to (a)the retail selling price of such new or improved product when first offered for <br /> sale; or(b)the value of materials incorporated into the prototype in cases in which the new or improved <br /> product is not offered for sale. <br /> "Value proceeding or accruing" means the consideration, whether money, credits, rights,or other <br /> property expressed in terms of money, a person is entitled to receive or which is actually received or <br /> accrued.The term shall be applied, in each case, on a cash receipts or accrual basis according to which <br /> method of accounting is regularly employed in keeping the books of the taxpayer. <br /> "Wholesaling" means engaging in the activity of making sales at wholesale, and is reported under the <br /> wholesaling classification. <br /> 3.24.040 Agency—Sales and services by agent,consignee, bailee,factor or auctioneer. <br /> A. Sales in Own Name—Sales or Purchases as Agent. Every person, including agents, consignees, <br /> bailees,factors or auctioneers, having either actual or constructive possession of tangible personal <br /> property or having possession of the documents of title thereto, with power to sell such tangible <br /> personal property in his or her or its own name and actually so selling, shall be deemed the seller of <br /> such tangible personal property within the meaning of this chapter.The burden shall be upon the <br /> taxpayer in every case to establish the fact that such taxpayer is not engaged in the business of selling <br /> tangible personal property but is acting merely as broker or agent in promoting sales or making <br /> purchases for a principal. Such claim will be recognized only when the contract or agreement between <br /> such persons clearly establishes the relationship of principal and agent and when the following <br /> conditions are complied with: <br /> 1. The books and records of the broker or agent show the transactions were made in the name and for <br /> the account of the principal, and show the name of the actual owner of the property for whom the sale <br /> was made, or the actual buyer for whom the purchase was made. <br /> 2. The books and records show the amount of the principal's gross sales,the amount of commissions <br /> and any other incidental income derived by the broker or agent from such sales.The principal's gross <br /> sales must not be reflected as the agent's income on any of the agent's books and records. Commissions <br /> must be computed according to a set percentage or amount, which is agreed upon in the agency <br /> agreement. <br /> Imo <br /> LI 2019 ORDINANCE: Business and Occupation Tax Page 18 of 40 <br />