Allocation of net profits.
Columbus City Codes § 361.20
in effect361.20 - Allocation of net profits.
(a) In the taxation of income which is subject to the tax, if the books and records of a taxpayer conducting a business or profession both within and without the boundaries of the city shall disclose with reasonable accuracy what portion of its net profit is attributable to that part of the business or profession conducted within the boundaries of the city, then only such portion shall be considered as having taxable situs in the city for purposes of the tax. In the absence of such records, net profit from a business or profession conducted both within and without the boundaries of the city shall be considered as having a taxable situs in the city for purposes of the tax in the same proportion as the average ratio of:
(1) The average net book value of the real and tangible personal property owned by the taxpayer in the business or profession in the city during the taxable period to the average net book value of all of the real and tangible personal property owned by the taxpayer in the business or profession during the same period, wherever situated.
As used in the preceding paragraph, real property shall include property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereon by eight (8);
(2) Qualifying wages earned or deemed received during the taxable period by persons employed in the business or professions for services performed in the city to qualifying wages earned or deemed received during the same period by persons employed in the business or profession, wherever their services are performed;
(3) Gross receipts of the business or profession from sales made and service performed during the taxable period in the city to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
(b) In the event that the foregoing allocation formula does not produce an equitable result, another basis may, under uniform regulations be substituted by the city auditor so as to produce such result.
(c) As used in this chapter, "sales made in the city" means:
(1) All sales of tangible personal property which is delivered within the city regardless of where title passes if shipped or delivered from a stock of goods within the city;
(2) All sales of tangible personal property which is delivered within the city regardless of where title passes even though transported from a point outside the city if the taxpayer is regularly engaged through the taxpayer's own employees in the solicitation or promotion of sales within the city and the sales result from such solicitations or promotion;
(3) All sales of tangible personal property which is shipped from a place within the city to purchasers outside the city regardless of where title passes if the sale is not generated through solicitation or promotion by an employee of the taxpayer at the place where delivery is made.
(Ord. 2890-90; Ord. No. 2937-2013, § 1, 10-20-2014; Ord. No. 2019-2021, § 1, 7-26-2021)
Source: City of Columbus, City Codes and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/oh/columbus/codes/code_of_ordinances?nodeId=TIT3FITACO_CH361INTATAYEPR2016_361.20ALNEPRFetched: 10/27/2026