Laserfiche WebLink
City of Tukwila My WebLink |HelpSearch Tips |About |Sign Out
D. If none of the methods in subsection [insert city code reference to .077(3)] for <br />determining where the delivery of digital products occurs are available after a <br />good faith effort by the taxpayer to apply the methods provided in subsections <br />[insert city code reference to .077(3)(a) through .077(3)(e)], then the city and the <br />taxpayer may mutually agree to employ any other method to effectuate an <br />equitable allocation of income from the sale of digital products. The taxpayer will <br />be responsible for petitioning the city to use an alternative method under this <br />subsection [insert city code reference to .077(D)]. The city may employ an <br />alternative method for allocating the income from the sale of digital products if the <br />methods provided in subsections [insert city code reference to .077(3)(a) through <br />.077(3)(e)] are not available and the taxpayer and the city are unable to mutually <br />agree on an alternative method to effectuate an equitable allocation of income <br />from the sale of digital products. <br />E. For purposes of subsections [insert city code reference to .077(3)(a) through <br />.077(3)(e)], "Receive" has the same meaning as in RCW 82.32.730. <br />F. Gross income derived from activities taxed as services and other activities taxed <br />under [insert city code reference to .050(1)(g)] shall be apportioned to the <br />city by multiplying apportionable income by a fraction, the numerator of which is <br />the payroll factor plus the service -income factor and the denominator of which is <br />two. <br />1. The payroll factor is a fraction, the numerator of which is the total <br />amount paid in the city during the tax period by the taxpayer for <br />compensation and the denominator of which is the total compensation <br />paid everywhere during the tax period. Compensation is paid in the city <br />if: <br />(a) The individual is primarily assigned within the city; <br />(b) The individual is not primarily assigned to any place of business <br />for the tax period and the employee performs fifty percent or more <br />of his or her service for the tax period in the city; or <br />(c) The individual is not primarily assigned to any place of business <br />for the tax period, the individual does not perform fifty percent or <br />more of his or her service in any city and the employee resides in <br />the city. <br />2. The service income factor is a fraction, the numerator of which is the <br />total service income of the taxpayer in the city during the tax period, and <br />the denominator of which is the total service income of the taxpayer <br />everywhere during the tax period. Service income 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 <br />location and a greater proportion of the service -income -producing <br />activity is performed in the city than in any other location, based on <br />costs of performance, and the taxpayer is not taxable at the <br />customer location; or <br />(c) The service -income -producing activity is performed within the city, <br />and the taxpayer is not taxable in the customer location. <br />26 <br />Draft B&O Ordinance Page 18 of 23 <br />