Evening star., 1939-08-27
DC. |ncomeT Tax
Rules Set Out
byCity Heads
Formulas Provided
For ALLEGATION of
Gross Receipts

the Commissioners yesterday pro-
mulgated set Of regulations pre-
scribing formulas to be followed in
the ALLEGATION OF the gross receipts
of businesses.
The rules also provided for infor-
nation returns to be made by every
person within or subject to the juris-
diction of the District, including
leSsees or mortgagors, as to pay
ments made to any corporation OF
interest, dividends, rent, premiums
and the like
Under both the per cent cor
porate income levy and the grad
uated personal net income levy, tax
payers on calendar year basis will
be required to file their returns with
the District assessor, Fred D. Allen,
on or before next March Is, but any
taxpayer on fiscal year basis will
be required to file returns earlier.
Some returns will be due by Octo-
ber Is.
AS previously explained, those hav-
ing a fiscal year are required to
make their returns on or before the
18th day Of the third month follow
ing the close of their fiscal year, and
If the fiscal year had expired in 1899
prior to the date of the approval OF
the act, July 26, the return must be
filed on or before the 18th day of the
third month following the approval
of the act.
Apportionment Provided.
In their rules, the Commissioners
prescribed that if the entire income
of any corporation is derived from
sources within the District. all of
such income shall be allocated to
the District If the gross income
of any corporation is derived from
sources both within and without the
District such gross income shall be
apportioned in accordance with the
specific provisions or formulas pre-
scribed in the regulations. These
read:
Income specifically allocated. In
terest, dividends, rents and royal
ties received from sources within
the District shall be allocated to the
District; interest, dividends, rents
and royalties received from sources
without the District shall be allo-
Gated without the District. Gains
from the sale of property (other
than capital assets as defined in
section 6 (a), located or having its
situs in the District shall be allo-
Gated to the District; gains from the
sale of property tother than capital
assets as defined in section (a),
located or having its situs without
the District shall be allocated with
out the District.
Gains by domestic corporations
from sales of securities issued by
foreign governments or by corpo-
rations organized under the laws
thereof, shall be allocated to the
District.
Formula Is Presented.
The gross income remaining after
deducting the above items specifi-
cally allocated herein after referred
to as gross income from trade or
business, shall be apportioned in ac-
cordance with the following formula:
Income from trade or business
II the trade or business of the cor
poration is carried on entirely with
in the District, the entire gross
business income shall be allocated
to the District; if the trade or busi-
ness of the corporation is carried on
partly within and partly without the
District, that portion of the gross
business income to be allocated tc
the District shall be determined as
follows:
"n Where gross income for any
taxable year is derived from the
manufacture or sale of tangible per-
sonal property, the portion thereof
to be allocated to the District shall
be taken to be such percentage Of
the total of such income as the
average monthly value of tangible
personal property held and owned
by the corporation in connection
with such trade or business in the
District plus. the gross receipts from
sales within the District bears to the
average monthly value of the entire
tangible personal property held and
owned by the corporation in con-
nection with its trade or business
plus the total gross receipts from
sales.
"As used herein, the word sale"
shall include all exchanges, and the
word manufacture" shall include
all fabricating. processing, curing
and the extraction and recovery of
natural resources"
Public Utility Income.
"(2) Where gross income for any
taxable year is derived from the
operation of a public utility. the
portion thereof to be allocated to
the District shall be taken to be
such percentage of the total of such
income as the average monthly value
Of tangible personal property held
| and owned by the corporation in
connection with such business in
the District plus the gross receipts
from business in the District bears
to the average monthly value of the
entire tangible personal property
held and owned by the corporation
in connection with its business, plus
the total gross receipts from such
business.
I'm determining the value of
tangible personal property of a
railroad company, operating both
within and without the District, the
valuation of the car rolling stock
and equipment and the locomotive
rolling stock and equipment held
and owned in connection with its
business in the District shall be
found by applying to the total valu-
alton of the entire rolling stock and
equipment of each respective class
.belonging to such company that
proportion or percentage which the
car mileage within the District bears
to the total car mileage of such COM
pany's cars during the taxable year
and which the locomotive mileage
within the District bears to the total
locomotive mileage of such COM
pany's locomotives during the tax
able year. Likewise, in determining