Source: http://dccode.elaws.us/code?no=47-1810.02
Timestamp: 2019-11-13 02:05:26
Document Index: 723235908

Matched Legal Cases: ['§ 47', '§ 2', '§ 4', '§ 106', '§ 103', '§ 3', '§ 2', '§ 202', '§ 1062', '§ 8022', '§ 47', '§ 47', '§ 1062', '§ 1062', '§ 7231', '§ 7231']

§ 47-1810.02. Allocation and apportionment of District and non-District income.
(a) Allocation and apportionment. -- The entire net income of any corporation, financial institution, or unincorporated business, or the unrelated business income of an exempt organization, derived from any trade or business carried on or engaged wholly within the District shall, for the purposes of this chapter, be deemed to be from sources within the District and shall, along with other income from sources within the District, be allocated to the District. If the net income of a corporation, financial institution, or unincorporated business, or the unrelated business income of an exempt organization, is derived from sources within and without the District, the taxpayer shall apportion business income and allocate non-business income as provided in this section.
(b) Taxation by another state. -- For purposes of allocation and apportionment of income under this section, a taxpayer is taxable in another state if:
(c) Allocation of nonbusiness income. --
(ii) In their entirety if the taxpayer's commercial domicile is in the District and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.
(ii) The taxpayer's commercial domicile is in the District and the taxpayer is not taxable in the state in which the property had a situs.
(C) Capital gains and losses from the sales of intangible personal property are allocable to the District if the taxpayer's commercial domicile is in the District.
(ii) If and to the extent that the patent or copyright is utilized by the taxpayer in a state in which the taxpayer is not taxable and the taxpayer's commercial domicile is in the District.
(B) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer's commercial domicile is located.
(d) Apportionment of business income. -- Except as provided in subsection (d-1), all business income shall be apportioned to the District by multiplying the income 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 3.
(d-1)(1) Apportionment of business income. --All business income shall be apportioned to the District by multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor twice, and the denominator of which is 4.
(2) This subsection shall be applicable for the tax years beginning after December 31, 2010.
(e) Property factor. --
(1) The property factor is a fraction, the numerator of which is the average value of the taxpayer's real and tangible personal property owned or rented and used in the District during the tax period and the denominator of which is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the tax period.
(3) The average value of property shall be determined by averaging the values at the beginning and ending of the tax period, but the Mayor may require the averaging of monthly values during the tax period if reasonably required to reflect properly the average value of the taxpayer's property.
(f) Payroll factor. --
(A) The individual's service is performed entirely within the District;
(B) The individual's service is performed both within and without the District, but the service performed without the District is incidental to the individual's service within the District; or
(ii) The base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in the District.
(g) Sales factor. --
(B) The property is shipped from an office, store, warehouse, factory, or other place of storage in the District and
(3) Sales, other than sales of tangible personal property, are in the District if:
(A) The income-producing activity is performed in the District; or
(B) The income-producing activity is performed both in and outside the District and a greater proportion of the income-producing activity is performed in the District than in any other state, based on costs of performance.
(h) Alternative methods. -- If the allocation and apportionment provisions of this section do not fairly represent the extent of the taxpayer's business activity in the District, the taxpayer may petition for or the Mayor may require, in respect to all or any part of the taxpayer's business activity, if reasonable:
(3) The inclusion of 1 or more additional factors that will fairly represent the taxpayer's business activity in the District; or
(i) Definitions.--For the purposes of this section, the term:
(1) "State" shall include the District of Columbia.
(2) "Business income" means all income which is apportionable under the Constitution of the United States.
(j) Construction. -- This section shall be so construed as to effectuate its general purpose to make uniform the law of those states that enact it.
(July 16, 1947, 61 Stat. 349, ch. 258, art. I, title X, § 2; Mar. 6, 1979, D.C. Law 2-158, § 4, 25 DCR 7002; Sept. 13, 1980, D.C. Law 3-95, § 106(b), 27 DCR 3509; July 24, 1982, D.C. Law 4-131, §§ 103, 108(a), (b), 29 DCR 2418; Feb. 28, 1987, D.C. Law 6-207, § 3, 34 DCR 677; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; June 9, 2001, D.C. Law 13-305, § 202(e), 48 DCR 334; Dec. 7, 2004, D.C. Law 15-205, § 1062(b), 51 DCR 8441; Sept. 14, 2011, D.C. Law 19-21, § 8022, 58 DCR 6226.)
1981 Ed., § 47-1810.2.
1973 Ed., § 47-1580a.
"(a) Allocation and apportionment. -- The entire net income of any corporation, financial institution, or unincorporated business derived from any trade or business carried on or engaged in wholly within the District shall, for the purposes of this chapter, be deemed to be from sources within the District and shall, along with other income from sources within the District, be allocated to the District. When the net income of a corporation, financial institution, or unincorporated business is derived from sources within and without the District, the taxpayer shall apportion business income and allocate nonbusiness income as provided in this section."
D.C. Law 15-205 rewrote subsec. (i) which had read as follows:
"(i) Definition. -- For purposes of this section, the term 'state' shall include the District of Columbia."
D.C. Law 19-21, in subsec. (d), substituted "Except as provided in subsection (d-1), all business" for "All business"; and added subsec. (d-1).
For temporary (90 day) amendment of section, see § 1062(b) of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).
For temporary (90 day) amendment of section, see § 1062(b) of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).
For temporary (90 day) addition, see § 7231 of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).
For temporary (90 day) amendment of section, see § 7231 of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).
Short title: Section 7230 of D.C. Law 18-111 provided that subtitle U of title VII of the act may be cited as the "Combined Reporting Reform Authorization Act of 2009".
Section 7231 of D.C. Law 18-111 provides:
"Sec. 7231. Implementation of combined reporting reform.
"The Council shall pass legislation to require, for tax years beginning after December 31, 2010, that all corporations taxable in the District of Columbia shall determine the income apportionable or allocable to the District of Columbia by reference to the income and apportionment factors of all commonly controlled corporations organized within the United States with which they are engaged in a unitary business."
Short title: Section 8021 of D.C. Law 19-21 provided that subtitle C of title VIII of the act may be cited as "Apportionment of Business Income Act of 2011".