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3.34.077 Allocation and apportionment of income when activities take place <br /> in more than one jurisdiction. Effective January 1, 2008, gross income, other <br /> than persons subject to the provisions of chapter 82.14A RCW, shall be allocated <br /> and apportioned as follows:(1) Gross income derived from all activities other than <br /> those taxed as service or royalties under EMC 3.24.050 A. 7 shall be allocated to <br /> the location where the activity takes place. <br /> (2) In the case of sales of tangible personal property, the activity takes place <br /> where delivery to the buyer occurs. <br /> (3) Gross income derived from activities taxed as services and other activities <br /> taxed under EMC 2.24.050 A. 7 shall be apportioned to the city by multiplying <br /> apportionable income by a fraction, the numerator of which is the payroll factor <br /> plus the service-income factor and the denominator of which is two. <br /> (a) The payroll factor is a fraction, the numerator of which is the total amount <br /> paid in the city during the tax period by the taxpayer for compensation and the <br /> denominator of which is the total compensation paid everywhere during the tax <br /> period. Compensation is paid in the city if: <br /> (i) The individual is primarily assigned within the city; <br /> (ii) The individual is not primarily assigned to any place of business for the tax <br /> period and the employee performs fifty percent or more of his or her service for <br /> the tax period in the city; or <br /> (iii) The individual is not primarily assigned to any place of business for the tax <br /> period, the individual does not perform fifty percent or more of his or her service <br /> in any city and the employee resides in the city. <br /> (b) The service income factor is a fraction, the numerator of which is the total <br /> service income of the taxpayer in the city during the tax period, and the <br /> denominator of which is the total service income of the taxpayer everywhere <br /> during the tax period. Service income is in the city if: <br /> (i) The customer location is in the city; or <br /> (ii) The income-producing activity is performed in more than one location and <br /> a greater proportion of the service-income-producing activity is performed in the <br /> city than in any other location, based on costs of performance, and the taxpayer <br /> is not taxable at the customer location; or <br /> (iii) The service-income-producing activity is performed within the city, and the <br /> taxpayer is not taxable in the customer location. <br /> (c) If the allocation and apportionment provisions of this subsection do not <br /> fairly represent the extent of the taxpayer's business activity in the city or cities in <br /> which the taxpayer does business, the taxpayer may petition for or the tax <br /> administrators may jointly require, in respect to all or any part of the taxpayer's <br /> business activity, that one of the following methods be used jointly by the cities to <br /> allocate or apportion gross income, if reasonable: <br /> (i) Separate accounting; <br /> (ii) The use of a single factor; <br /> 31 <br />