Sec. 23-1.3. Allocation of tax to the Metropolitan Commuter Transportation District

Tax Law, § 1455-B(2)

(a) A surcharge taxpayer doing business or carrying on business solely within the MCTD must allocate 100 percent of its tax as computed in Part 18 of this Title, after deduction of credits allowed pursuant to Part 20 of this Title, to the MCTD. A surcharge taxpayer doing business or carrying on business in New York State both within and without the MCTD must allocate its tax computed in Part 18 of this Title, after the deduction of credits allowed pursuant to Part 20 of this Title, within and without the MCTD. Such surcharge taxpayer allocates its tax to the MCTD by multiplying such tax by its gross income allocation percentage. The gross income allocation percentage is determined by dividing the surcharge taxpayer's gross income within the MCTD by the surcharge taxpayer's gross income within New York State.

(b) For purposes of this section, gross income means Federal gross income, as defined in section 61 of the Internal Revenue Code, plus any amount excluded from Federal gross income pursuant to section 103 of the Internal Revenue Code. When the taxpayer has utilized the IBF modification as provided in Subpart 18-3 of this Title, the taxpayer must subtract from Federal gross income the eligible gross income of the IBF.

(c) Where it appears that the gross income allocation percentage does not properly reflect the surcharge taxpayer's business activities carried on within the MCTD, the Tax Commission, in its discretion, may adjust the gross income allocation percentage or require that the surcharge taxpayer use a different allocation formula or a different allocation method to properly reflect the surcharge taxpayer's business activity carried on within the MCTD. However, a surcharge taxpayer may not employ an allocation method other than the gross income allocation method set forth in subdivision (a) of this section, use an allocation percentage or method different from the one arrived at by using the method set forth in such subdivision (a) without the prior written consent of the Tax Commission.