§ 15-118. Allocation to City.

A. General. If net earnings from self-employment are derived from
services performed or from sources within and without the City of
Yonkers, there shall be allocated to the City of Yonkers a fair and
equitable portion of such earnings.

B. Allocation of net earnings from self-employment.

(1) Place of business. If a taxpayer has no regular place of business
outside the City of Yonkers, all of his/her net earnings from
self-employment shall be allocated to the City of Yonkers.

(2) Allocation by taxpayer's books. The portion of net earnings from
self-employment allocable to the City of Yonkers may be determined from
the books and records of a taxpayer's trade or business, if the methods
used in keeping such books and the accuracy thereof are approved by the
State Tax Commission as fairly and equitably reflecting net earnings
from self-employment within the City of Yonkers.

(3) Allocation by formula. If Subsection B(2) of this section does not
apply to the taxpayer, the portion of net earnings from self-employment
allocable to the City of Yonkers shall be determined by multiplying net
earnings from self-employment, within and without the City of Yonkers,
by the average of the following three percentages:

(a) Property percentage. The percentage computed by dividing the
average of the value, at the beginning and end of the taxable year, of
real and tangible personal property connected with the net earnings from
self-employment and located within the City of Yonkers by the average of
the value, at the beginning and end of the taxable year, of all real and
tangible personal property connected with the net earnings from
self-employment and located both within and without the City of Yonkers.
For this purpose, "real property" shall include real property, whether
owned or rented.

(b) Payroll percentage. The percentage computed by dividing the total
wages, salaries and other personal service compensation paid or incurred
during the taxable year to employees in connection with the net earnings
from self-employment derived from a trade or business carried on within
the City of Yonkers by the total of all wages, salaries and other
personal service compensation paid or incurred during the taxable year
to employees in connection with the net earnings from self-employment
derived from a trade or business carried on both within and without the
City of Yonkers.

(c) Gross income percentage. The percentage computed by dividing the
gross sales or charges for services performed by or through an agency
located within the City of Yonkers by the total of all gross sales or
charges for services performed within and without the City of Yonkers.
The sales or charges to be allocated to the City of Yonkers shall
include all sales negotiated or consummated, and charges for services
performed, by an employee, agent, agency or independent contractor
chiefly situated at, connected by contract or otherwise with or sent out
from offices or other agencies of the trade or business from which a
taxpayer is deriving net earnings from self-employment, situated within
the City of Yonkers.

C. Other allocation methods. The portion of net earnings from
self-employment allocable to the City of Yonkers shall be determined in
accordance with rules and regulations of the State Tax Commission if it
shall appear to the Tax Commission that the net earnings from
self-employment are not fairly and equitably reflected under the
provisions of Subsection B of this section.

D. Special rules for real estate. Income and deductions from the
rental of real property and gain and loss from the sale, exchange or
other disposition of real property shall not be subject to allocation
under Subsection B or C of this section but shall be considered as
entirely derived from or connected with the place in which such property
is located.