Section 15-118 - Allocation to CityA.General. If net earnings from self-employment are derived from services performed or from sources within and without the City of Yonkers, there shall be allocated to the City of Yonkers a fair and equitable portion of such earnings.B.Allocation of net earnings from self-employment.(1) Place of business. If a taxpayer has no regular place of business outside the City of Yonkers, all of his/her net earnings from self-employment shall be allocated to the City of Yonkers.(2) Allocation by taxpayer's books. The portion of net earnings from self-employment allocable to the City of Yonkers may be determined from the books and records of a taxpayer's trade or business, if the methods used in keeping such books and the accuracy thereof are approved by the State Tax Commission as fairly and equitably reflecting net earnings from self-employment within the City of Yonkers.(3) Allocation by formula. If Subsection B(2) of this section does not apply to the taxpayer, the portion of net earnings from self-employment allocable to the City of Yonkers shall be determined by multiplying net earnings from self-employment, within and without the City of Yonkers, by the average of the following three percentages: (a) Property percentage. The percentage computed by dividing the average of the value, at the beginning and end of the taxable year, of real and tangible personal property connected with the net earnings from self-employment and located within the City of Yonkers by the average of the value, at the beginning and end of the taxable year, of all real and tangible personal property connected with the net earnings from self-employment and located both within and without the City of Yonkers. For this purpose, "real property" shall include real property, whether owned or rented.(b) Payroll percentage. The percentage computed by dividing the total wages, salaries and other personal service compensation paid or incurred during the taxable year to employees in connection with the net earnings from self-employment derived from a trade or business carried on within the City of Yonkers by the total of all wages, salaries and other personal service compensation paid or incurred during the taxable year to employees in connection with the net earnings from self-employment derived from a trade or business carried on both within and without the City of Yonkers.(c) Gross income percentage. The percentage computed by dividing the gross sales or charges for services performed by or through an agency located within the City of Yonkers by the total of all gross sales or charges for services performed within and without the City of Yonkers. The sales or charges to be allocated to the City of Yonkers shall include all sales negotiated or consummated, and charges for services performed, by an employee, agent, agency or independent contractor chiefly situated at, connected by contract or otherwise with or sent out from offices or other agencies of the trade or business from which a taxpayer is deriving net earnings from self-employment, situated within the City of Yonkers.C.Other allocation methods. The portion of net earnings from self-employment allocable to the City of Yonkers shall be determined in accordance with rules and regulations of the State Tax Commission if it shall appear to the Tax Commission that the net earnings from self-employment are not fairly and equitably reflected under the provisions of Subsection B of this section.D.Special rules for real estate. Income and deductions from the rental of real property and gain and loss from the sale, exchange or other disposition of real property shall not be subject to allocation under Subsection B or C of this section but shall be considered as entirely derived from or connected with the place in which such property is located.N.Y. Yonkers Income Tax Surcharge § 15-118