What is the effective date for the new allocation and apportionment procedures?
January 1, 2008. Who is affected by the new allocation and apportionment procedures? Beginning January 1, 2008, the sales of goods generally are allocated to the place of delivery by the seller. Services are apportioned for taxing purposes based on the two-factor formula of payroll and service income. 1) Businesses that ship or deliver goods outside of their taxing jurisdiction (in this case—Seattle) are affected by the new tax code. RCW 35.102.130 (Seattle Municipal Code 5.45.081) contains the new procedures, and essentially gives Seattle businesses that ship goods outside of Seattle a business license tax reduction. The new tax code allows a deduction for sales delivered outside of Seattle but within Washington. Businesses have always been able to deduct interstate sales (sales delivered by the seller to a point outside of the State of Washington). Now they can also deduct sales delivered outside of the city but within Washington (intrastate sales). 2) The new tax code allows busines
