Ordinance 3711-19 - Laserfiche WebLink

3.24.075 Deductions to prevent multiple taxation of manufacturing activities and prior to January 1, 2008,transactions involving more than one city with an eligible gross receipts tax. A. Amounts Subject to an Eligible Gross Receipts Tax in Another City That Also Maintains Nexus Over the Same Activity. For taxes due prior to January 1, 2008, a taxpayer that is subject to an eligible gross receipts tax on the same activity in more than one jurisdiction may be entitled to a deduction as follows: 1. A taxpayer that has paid an eligible gross receipts tax, with respect to a sale of goods or services, to a jurisdiction in which the goods are delivered or the services are provided may deduct an amount equal to the gross receipts used to measure that tax from the measure of the tax owed to the city. 2. Notwithstanding the above, a person that is subject to an eligible gross receipts tax in more than one jurisdiction on the gross income derived from intangibles such as royalties,trademarks, patents, or goodwill shall assign those gross receipts to the jurisdiction where the person is domiciled (its headquarters is located). 3. A taxpayer that has paid an eligible gross receipts tax on the privilege of accepting or executing a contract with another city may deduct an amount equal to the contract price used to measure the tax due to the other city from the measure of the tax owed to the city. B. Person Manufacturing Products Within and Without. A person manufacturing products within the city using products manufactured by the same person outside the city may deduct from the measure of the manufacturing tax the value of products manufactured outside the city and included in the measure of an eligible gross receipts tax paid with respect to manufacturing such products. 3.24.076 Assignment of gross income derived from intangibles. Gross income derived from the sale of intangibles such as royalties, trademarks, patents,or goodwill shall be assigned to the jurisdiction where the person is domiciled (its headquarters is located). 3.24.077 Allocation and apportionment of income when activities take place in more than one jurisdiction. Effective January 1, 2008,gross income, other than persons subject to the provisions of Chapter 82.14A RCW, shall be allocated and apportioned as follows: A. Gross income derived from all activities other than those taxed as service or royalties under Section 3.24.050(A)(7) shall be allocated to the location where the activity takes place. B. In the case of sales of tangible personal property,the activity takes place where delivery to the buyer occurs. C. In the case of sales of digital products, the activity takes place where delivery to the buyer occurs. The delivery of digital products will be deemed to occur at: 1. The seller's place of business if the purchaser receives the digital product at the seller's place of business; L 2019 ORDINANCE: Business and Occupation Tax Page 23 of 40