- 6 -
|
Line 21, column B: Enter the total gross receipts from sales, rents, and services in the ordinary course or usual trade of
business earned everywhere during the period covered by the tax return. (NOTE: THIS AMOUNT EQUALS THE “GROSS
RECEIPTS LESS RETURNS AND ALLOWANCES” AS REPORTED ON THE FEDERAL INCOME TAX RETURN. IF THE TAXPAYERS
PRINCIPAL BUSINESS WITHIN THE LOCALITY IS RENTAL INCOME, THEN THE AMOUNT WOULD INCLUDE THE TOTAL GROSS
RENTS AS REPORTED ON THE FEDERAL INCOME TAX RETURN. THIS AMOUNT DOES NOT INCLUDE INTEREST, DIVIDENDS, OR
SALES OF BUSINESS PROPERTY. IF THE TAXPAYERS PRINCIPAL BUSINESS IS THE SALE OF PROPERTY, THEN THE SALES ARE
REPORTED IN THE “GROSS RECEIPTS” AMOUNT FOR FEDERAL INCOME TAX PURPOSES. INCOME AS REPORTED ON THE
FEDERAL FORM 4797 IS FROM CASUAL SALES, NOT FROM THE ORDINARY TRADE OR BUSINESS AND SHOULD NOT BE
CONSIDERED IN DETERMINING THE SALES FACTOR.)
Line 21, column C: Divide column A by column B. Enter the result on Line 21, column C.
Payroll Factor
Line 22, column A: Enter the total compensation paid to employees who are residents of the school district for services
rendered within the local jurisdiction during the period covered by the tax return. (NOTE: FOR THOSE LOCAL JURISDICTIONS
THAT HAVE A PAYROLL TAX, THIS AMOUNT SHOULD EQUAL THE AMOUNT OF PAYROLL REPORTED AS BEING SUBJECT TO
THE LOCAL JURISDICTION WITHHOLDING TAX. SOMETIMES A DIFFERENCE IS NOTED DUE TO THE ACCRUAL ACCOUNTING
PROCESS. IN THIS SITUATION, THE AUDITOR WOULD REQUEST THE TAXPAYER TO SUBMIT A RECONCILIATION OF THE
DIFFERENCE. TYPICALLY, THE ACCURAL WOULD HAVE AN IMMATERIAL AFFECT ON THE FEE DUE.)
Line 22, column B: Enter the total compensation paid to employees for services rendered everywhere during the period covered
by the tax return. (NOTE: THIS AMOUNT SHOULD EQUAL THE DEDUCTIONS REPORTED ON THE FEDERAL INCOME TAX
RETURNS AS COMPENSATION OF OFFICERS, WAGES AND SALARIES, AND COST OF LABOR. IT WOULD NOT INCLUDE THE
COST OF LABOR AMOUNT IF THE SUBCONTRACTORS EXPENSE IS REPORTED UNDER COST OF LABOR. ALSO, IT WOULD NOT
INCLUDE GUARANTEED PAYMENTS TO PARTNERS DEDUCTED ON A FEDERAL FORM 1065 BECAUSE PARTNERS ARE NOT
CONSIDERED EMPLOYEES.)
Line 22, column C: Divide column A by column B. Enter the result on Line 22, Column C.
Business Apportionment
Line 23, column C: Add column C, lines 21 and 22. Enter the result on line 23, column C.
Line 24, column C: Divide line 23, column C by the number of percents used on lines 21 and 22, column C. Enter the result
on line 24, column C and page 1, Section B, line 2, of FEE COMPUTATION section. Then follow instructions for FEE
COMPUTATION. (NOTE: IF THE TAXPAYER HAS PAYROLL REPORTED ON THE FEDERAL INCOME TAX RETURN AND NO
PAYROLL WITHIN THE LOCAL JURISDICTION, THEN DIVIDE LINE 23 BY TWO. IF THE TAXPAYER HAS NO PAYROLL REPORTED
ON THE FEDERAL INCOME TAX RETURN, THEN DIVIDE LINE 23 BY ONE.)
SECTION B NET PROFIT FEE COMPUTATION
Line 1 of FEE COMPUTATION section “Adjusted Net Business Income” (Line 20 of Worksheet 1)
Line 2 of FEE COMPUTATION section “Average allocation percentage” (Line 24 of Worksheet 1)
Line 3 of FEE COMPUTATION section, “Net Profits subject to license tax.” Multiply line 1 by line 2. Enter the total on line 3.
Line 4 of FEE COMPUTATION section, “License Tax due.” Multiply line 3 by the local tax jurisdiction rate .005. Enter the total on
line 4.
Line 5 of FEE COMPUTATION section, “Interest.” If the return is not filed timely, enter interest on the tax due at the rate of 1% per
month or portion thereof.
Line 6 of FEE COMPUTATION section. “Penalty.” If the return is not filed timely, enter the penalty on the tax due at the rate of 5%
per month or portion thereof, up to 25%, with a minimum of $25.
Line 7 of FEE COMPUTATION section, “Total Tax, Interest, and Penalty.” Add lines 4 through 6.
Line 8 of FEE COMPUTATION section, “Credit”. Enter any amount paid with an extension or an overpayment from a prior year that
is credited to the current year.
Line 9 of FEE COMPUTATION section, “Balance Due.” If line 7 is greater than line 8, enter the difference here.
Line 10 of FEE COMPUTATION section, “Overpayment.” If line 8 exceeds line 7, then indicate whether a refund is requested or to
credit to next year’s estimated payment.
SIGNATURE
1) If the return is being filed by a corporation, it must be signed and dated by the president, vice-president, treasurer,
assistant treasurer, chief accounting officer or any other corporate officer authorized to sign.
2) If the return is being filed by a partnership, it must be signed by a general partner.
3) The licensee who signs the return must print his/her name in the area provided.
6 of 6
|