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a. The individual is primarily assigned within the city; <br /> b. The individual is not primarily assigned to any place of business for the tax period <br /> and the employee performs fifty percent or more of his or her service for the tax period in <br /> the city; or <br /> c. The individual is not primarily assigned to any place of business for the tax period, <br /> the individual does not perform fifty percent or more of his or her service in any city and <br /> the employee resides in the city. <br /> 2. The service-income factor is a fraction, the numerator of which is the total service <br /> income of the taxpayer in the city during the tax period, and the denominator of which is <br /> the total service income of the taxpayer everywhere during the tax period. Service income <br /> is in the city if: <br /> a. The customer location is in the city; or <br /> b. The income-producing activity is performed in more than one location and a <br /> greater proportion of the service-income-producing activity is performed in the city than <br /> in any other location, based on costs of performance, and the taxpayer is not taxable at <br /> the customer location; or <br /> c. The service-income-producing activity is performed within the city, and the <br /> taxpayer is not taxable in the customer location. <br /> 3. If the allocation and apportionment provisions of this subsection do not fairly <br /> represent the extent of the taxpayer's business activity in the city or cities in which the <br /> taxpayer does business, the taxpayer may petition for or the tax administrators may <br /> jointly require, in respect to all or any part of the taxpayer's business activity, that one of <br /> the following methods be used jointly by the cities to allocate or apportion gross income, <br /> if reasonable: <br /> a. Separate accounting; <br /> b. The use of a single factor; <br /> c. The inclusion of one or more additional factors that will fairly represent the <br /> taxpayer's business activity in the city; or <br /> d. The employment of any other method to effectuate an equitable allocation and <br /> apportionment of the taxpayer's income. <br /> G. The definitions in this subsection apply throughout this section. <br /> 1. "Apportionable income"means the gross income of the business taxable under the <br /> service classifications of a city's gross receipts tax, including income received from <br /> activities outside the city if the income would be taxable under the service classification <br /> if received from activities within the city, less any exemptions or deductions available. <br /> 2. "Compensation" means wages, salaries, commissions, and any other form of <br /> remuneration paid to individuals for personal services that are or would be included in the <br /> individual's gross income under the federal Internal Revenue Code. <br /> Page 38 of 56 <br />