§ 11-67 Power of Commissioner of Finance to Adjust Business Allocation Percentage.
RCNY § 11-67
(§ 11-604(8), Administrative Code.) (a) Generally, the allocation formula hereinbefore described will result in a fair apportionment of the taxpayer's capital and income within and without New York City. However, experience has shown that due to the nature of certain businesses the formula may work hardships in some cases, and not do justice either to the taxpayer or to the City. Accordingly, provision is made whereby, in such cases, the Commissioner of Finance may use some other formula which will more accurately reflect the business activity within New York City.
(b)The statute provides that where it appears to the Commissioner of Finance that the business allocation percentage, computed in the manner prescribed by paragraph (a) of subdivision (3) of § 11-604 of the Administrative Code does not properly reflect the activity, business, income or capital of the taxpayer within New York City, the Commissioner of Finance, in his discretion, may adjust business allocation percentage by: (1) excluding one or more of the factors therein, (2) including one or more other factors, such as expenses, purchases, contract values (minus subcontract values), (3) excluding one or more assets in computing any factor entering into the allocation percentage provided the income therefrom is also excluded in determining entire net income, or (4) any other similar or different method calculated to effect a fair and proper allocation.
(c)Rulings of general public interest will be published by the Commissioner of Finance from time to time, indicating the circumstances under which, and the manner in which, such adjustments will be made.
(d)A taxpayer may not vary the regular statutory formula without the prior consent of the Commissioner of Finance. A taxpayer making application for an adjustment of its business allocation percentage must file its report and compute its tax in accordance with the regular statutory formula. It should also attach a rider to the report setting forth full information on which its application is based, together with a computation of the amount of tax which would be due under the proposed method.
