Ordinance 3711-19 - Laserfiche WebLink

1. The payroll factor is a fraction,the numerator of which is the total amount paid in the city during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period. Compensation is paid in the city if: a. The individual is primarily assigned within the city; b. The individual is not primarily assigned to any place of business for the tax period and the employee performs fifty percent or more of his or her service for the tax period in the city; or c. The individual is not primarily assigned to any place of business for the tax period, the individual does not perform fifty percent or more of his or her service in any city and the employee resides in the city. 2. The service-income factor is a fraction,the numerator of which is the total service income of the taxpayer in the city during the tax period, and the denominator of which is the total service income of the taxpayer everywhere during the tax period. Service income is in the city if the customer location is in the city.: a. The customer location is in the city;or b. The income producing activity is performed in more than one location and a greater proportion of the service income producing activity is performed in the city than in any other location, based on costs of performance,and the taxpayer is not taxable at the customer location;or c. The service income producing activity is performed within the city, and the taxpayer is not taxable in 3. Gross income of the business from engaging in an apportionable activity must be excluded from the denominator of the service income factor if, in respect to such activity, at least some of the activity is performed in the city, and the gross income is attributable under (2) of this subsection (F)to a city or unincorporated area of a county within the United States or to a foreign country in which the taxpayer is not taxable. For purposes of this subsection (F)(3), "not taxable' means that the taxpayer is not subject to a business activities tax by that city or county within the United States or by that foreign country, except that a taxpayer is taxable in a city or county within the United States or in a foreign country in which it would be deemed to have a substantial nexus with the city or county within the United States or with the foreign country under the standards in RCW 35.102.050 regardless of whether that city or county within the United States or that foreign country imposes such a tax. 43. If the allocation and apportionment provisions of this subsection do not fairly represent the extent of the taxpayer's business activity in the city,or cities in which the taxpayer does business;the taxpayer may petition for or the tax administrators may jointly require, in respect to all or any part of the taxpayer's business activity, that one of the following methods be used jointly by the cities to allocate or if reasonable: a. Separate accounting; b. The use of a single factorThe exclusion of any one or more of the factors; 12 2019 ORDINANCE: Business and Occupation Tax Page 25 of 40