§ 6.08.100. Allocation and apportionment of gross sales or revenue.
Every person doing business in this county, outside the incorporated cities, which has gross sales, gross revenue or gross receipts, which is taxable both within and without this state or county may elect to pay the license fee rate set out in Section 6.12.835 or allocate and apportion his gross revenue as provided in this section.
(a)
For purposes of allocation and apportionment of gross revenue under this section, a business is taxable in another state if:
(1)
In that state or Nevada county it is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax; or
(2)
That state or Nevada county has jurisdiction to subject the business to a net income tax regardless of whether, in fact, the state or Nevada county does or does not.
(b)
(1)
Net rents and royalties from real property located in this county are allocable to this county.
(2)
Net rents and royalties from tangible personal property are allocable to this county:
(A)
If and to the extent that the property is utilized in this county; or
(B)
In their entirety if the business' commercial domicile is in this county and the business is not organized under the laws of or taxable in the county in which the property is utilized.
(3)
The extent of utilization of tangible personal property in a county is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the county during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the business, tangible personal property is utilized in the county in which the property was located at the time the rental or royalty payer obtained possession.
(c)
(1)
Capital gains and losses from sales of real property located in this county are allocable to this county.
(2)
Capital gains and losses from sales of tangible personal property are allocable to this county if:
(A)
The property had a situs in this county at the time of the sale; or
(B)
The business' commercial domicile is in this county and the business is not taxable in the state or Nevada county in which the property had a situs.
(3)
Capital gains and losses from sales of intangible personal property are allocable to this county if the business' commercial domicile is in this county.
(d)
All gross revenue shall be apportioned to this county by multiplying the gross revenue by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator of which is three.
(e)
The property factor is a fraction, the numerator of which is the average value of the business' real and tangible personal property owned or rented and used in this county during the license period and the denominator of which is the average value of all the business' real and tangible personal property owned or rented and used during the license period.
(f)
Property owned by the business is valued at its original cost. Property rented by the business is valued at eight times the net annual rental paid by the business less any annual rental rate received by the business from subrentals.
(g)
The average value of property shall be determined by averaging the values at the beginning and ending of the license period but the license director may require the averaging of monthly values during the license period if reasonably required to properly reflect the average value of the business' property.
(h)
The payroll factor is a fraction, the numerator of which is the total amount paid in this county during the tax period by the business for compensation and the denominator of which is the total compensation paid everywhere during the tax period.
(i)
Compensation is paid in this county if:
(1)
The individual's service is performed entirely within the county;
(2)
The individual's service is performed both within the county and without the county or state, but the service performed without the county or state is incidental to the individual's service within the county; or
(3)
Some of the service is performed in the county and
(A)
The base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in this county, or
(B)
The base of operations or the place from which the service is directed or controlled is not in any state or county of this state in which some part of the service is performed, but the individual's residence is in this county.
(j)
The sales factor is a fraction, the numerator of which is the total sales, as defined below, of the business in this county during the tax period, and the denominator of which is the total sales of the business everywhere during the tax period.
(k)
Sales of tangible personal property are in this county if:
(1)
The property is delivered or shipped to a purchaser, other than the United States Government, within this county regardless of the f.o.b. point or other conditions of the sale; or
(2)
The property is shipped from an office, store, warehouse, factory or other place of storage in this county and:
(A)
The purchaser is in the United States Government, or
(B)
The business is not taxable in the state or Nevada county of the purchaser.
(l)
Sales, other than sales of tangible personal property, are in this county if:
(1)
The income-producing activity is performed in this county; or
(2)
The income-producing activity is performed both in this county and outside this state or county of this state and a greater proportion of the income-producing activity is performed in this county than in any other state or Nevada county, based on costs of performance.
(m)
If the allocation and apportionment provisions of this section do not fairly represent the extent of the business' activity in this county, the business may petition for, or the license director or his designee may require, in respect to all or any part of the business' activity, if reasonable:
(1)
Separate audit and/or accounting;
(2)
The exclusion of any one or more of the factors;
(3)
The inclusion of one or more additional factors which will fairly represent the business' business activity in this county; or
(4)
The employment of any other method to effectuate an equitable allocation and apportionment of the business' gross revenue.
(n)
Because the business is in the best position to determine the extent and nature of its business activity in other states or Nevada counties, the burden is on the business to produce evidence that the formula set forth herein is not equitable or that it is taxed or taxable in the states where its sales are delivered. (372 A.2d 1305)
(o)
Words and terms used in this section have the meaning ascribed to them in the Multi-State Tax Compact set out in Chapter 371 of the Statutes of Nevada 1967 and Public Law 86-272 (15 U.S.C. Section 351) unless a different meaning clearly appears in the context where used or in Section 6.04.005.
(p)
This section applies to all license fees paid and payable on or after September 30, 1992 as adjusted by NRS 11.190.
(q)
"Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed.
(Ord. 1812 § 1, 1996)