Sec. 19-2.1. General rules for allocation of entire net income

Tax Law, § 1454

(a) When a taxpayer's entire net income, as defined in section 18-2.2 of this Title, is derived from business carried on both within and without New York State, the portion thereof which is derived from business carried on within New York State is determined by multiplying entire net income by the entire net income allocation percentage. When a taxpayer is entitled to allocate entire net income pursuant to paragraph (a)(2) of section 19-1.1 of this Part, the portion of its entire net income which is attributable to New York State is determined by multiplying entire net income by the entire net income allocation percentage. The entire net income allocation percentage is determined by a formula consisting of a payroll factor, a receipts factor, a deposits factor, an additional factor equal to the receipts factor and an additional factor equal to the deposits factor.

(b) If allocation by the entire net income allocation percentage does not properly reflect the activity, business or income of the taxpayer in New York State, the Tax Commission, in its discretion, may permit or require the allocation of entire net income by a different method. A taxpayer may not use a method other than the entire net income allocation percentage for allocating its entire net income within and without New York State without the written consent of the Tax Commission. (See section 19-8.4 of this Part -Power of the Tax Commission to adjust or change the method of allocation.)