Receipts Factor.
19 RCNY § 11-65
in effect§ 11-65 Receipts Factor.
(a) General.
(1) The percentage of the taxpayer's business receipts within New York City is determined by
(i) ascertaining the taxpayer's business receipts within New York City during the period covered by the report and
(ii) dividing the sum of such receipts by the taxpayer's total business receipts within and without New York City during such period.
(2) The following receipts are allocable to New York City:
(i) one hundred percent of receipts from sales of tangible personal property where shipment is made to points within New York City;
(ii) one hundred percent of receipts from services performed in New York City;
(iii) one hundred percent of rentals from property situated in New York City; (iv) one hundred percent of royalties from the use in New York City of patents and copyrights;
(v) all other business receipts earned in New York City. All such receipts of the period covered by the report (computed on the cash or accrual basis, in accordance with the method of accounting used in the computation of the taxpayer's entire net income) must be taken into account.
(3) If a taxpayer receives a lump sum in payment for services and also for materials or other property, the sum received must be apportioned on a reasonable basis. That part apportioned to services performed is includible in receipts from services performed, and that part apportioned to materials or other property is includible in receipts from sales. Full details must be submitted with the taxpayer's report.
(b) Compensation for services.
(1) Receipts from services performed within New York City are allocable to New York City. All amounts received by the taxpayer in payment for such services are so allocable, irrespective of whether such services were performed by employees or agents of the taxpayer, by subcontractors, or by any other persons. It is immaterial where such amounts were payable or where they actually were received.
(2) Commissions received by the taxpayer are allocated to New York City if the services for which the commissions were paid were performed in New York City. If the taxpayer's services for which commissions were paid were performed for the taxpayer by salesmen attached to or working out of a New York City office of the taxpayer, the taxpayer's services will be deemed to have been performed in New York City.
Example: The taxpayer is a New York City sales agent of a Pennsylvania manufacturer and receives in New York City an order from a New Jersey customer. The order is forwarded to the manufacturer which accepts it and fills it by shipment direct to the customer. The taxpayers commission is allocable to New York City.
(3) (i) Where a lump sum is received by the taxpayer in payment for services within and without New York City, the amount attributable to services within New York City is to be determined on the basis of the relative values of, or amounts of time spent in performance of, such services within and without New York City, or by some other reasonable method. Full details must be submitted with the taxpayer's report. (See also 19 RCNY § 11-65(a)(3).)
(ii) The broadcasting of radio and television programs and commercial messages by way of radio and television antenna pursuant to a license granted by the Federal Communications Commission is deemed to be a service. When a lump sum is received for such service, that lump sum shall be allocated within and without New York City according to the number of listeners or viewers within and without New York City.
(c) Rents and royalties.
(1) Receipts from rentals of real and personal property situated in New York City, and royalties from the use in New York City of patents or copyrights, are allocable to New York City. Receipts from rentals include all amounts received by the taxpayer for the use or occupation of property, whether or not such property is owned by the taxpayer.
(2) Receipts from royalties include all amounts received by the taxpayer for the use of patents or copyrights, whether or not such patents or copyrights were originally issued to or are owned by the taxpayer. A patent or copyright is used in New York City to the extent that activities thereunder are carried on in New York City.
(d) Receipts from trucking. Receipts from trucking may be allocated to New York City on the percentage that mileage within New York City bears to total mileage within and without New York City, or on the percentage that the time operated within New York City bears to the total time operated within and without New York City.
(e) Other business receipts.
(1) All business receipts earned by the tax payer within New York City are allocable to New York City. Business receipts are not considered to have been earned by the taxpayer in New York City solely by reason of the fact that they were payable in New York City or actually were received in New York City.
(2) Receipts from sales or capital assets (property not held by the taxpayer for sale to customers in the regular course of business) are not business receipts. Receipts from the sale of real property held by the taxpayer as a dealer for sale to customers in the regular course of business are business receipts and are allocable to New York City if the real property was situated in New York City. Receipts from sales of intangible personal property included in business capital, held by the taxpayer as a dealer for sale to customers in the regular course business, are business receipts and are allocable to New York City if the sales were made in New York City or through a regular place of business of the taxpayer in New York City.
(f) Receipts factor on combined reports. In the case of combined reports, intercompany business receipts – receipts by any corporation included in the combined report from any other corporation included in such report – are eliminated in computing the percentage of business receipts within New York City. As to when combined reports will be permitted or required, see 19 RCNY § 11-91 infra.
Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-37167Fetched: 10/24/2026