Sec. 19-3.1. General rules for allocation of alternative entire net income

Tax Law, § 1454

(a) When a taxpayer's alternative entire net income, as defined in subdivision (b) of section 18-4.1 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 alternative entire net income by the alternative entire net income allocation percentage. When a taxpayer is entitled to allocate alternative entire net income pursuant to paragraph (a)(2) of section 19-1.1 of this Part, the portion of its alternative entire net income which is attributable to New York State is determined by multiplying alternative entire net income by the alternative entire net income allocation percentage. The alternative entire net income allocation percentage is determined by a formula consisting of a payroll factor, a receipts factor and a deposits factor.

(b) If allocation by the alternative 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 alternative entire net income by a different method. A taxpayer may not use a method other than the alternative entire net income allocation percentage for allocating its alternative 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.)