Section 107 - Allocation to the city(a) General.-If an unincorporated business is carried on both within and without the city, as determined under regulations of the director of finance, there shall be allocated to the city a fair and equitable portion of the excess of its unincorporated business gross income over its unincorporated business deductions. If the unincorporated business has no regular place of business outside the city, all of such excess shall be allocated to the city.(b) Allocation by taxpayer's books.-The portion allocable to the city may be determined from the books of the business if the methods used in keeping such books are approved by the director of finance as fairly and equitably reflecting the income from the city.(c) Allocation by formula.-If subdivision (b) does not apply to the taxpayer, the portion allocable to the city shall be determined by multiplying (A) the excess of its unincorporated business gross income over its unincorporated business deduction, by (B) the average of the following three percentages:(1) Property percentage.-The percentage computed by dividing (A) the average of the value, at the beginning and end of the taxable year, of real and tangible personal property connected with the unincorporated business and located within the city, by (B) the average of the value, at the beginning and end of the taxable year, of all real and tangible personal property connected with the unincorporated business and located both within and without the city. For this purpose, real property shall include real property rented to the unincorporated business.(2) Payroll percentage.-The percentage computed by dividing (A) the total wages, salaries and other personal service compensation paid or incurred during the taxable year to employees in connection with the unincorporated business carried on within the city, by (B) the total of all wages, salaries and other personal service compensation paid or incurred during the taxable year to employees in connection with the unincorporated business carried on both within and without the city.(3) Gross income percentage.-The percentage computed by dividing (A) the gross sales or charges for services performed by or through an agency located within the city, by (B) the total of all gross sales or charges for services performed within and without the city. The sales or charges to be allocated to the city 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 of the unincorporated business, or other agencies, situated within the city.(d) Other allocation methods.-The portion allocable to the city shall be determined in accordance with rules and regulations of the director of finance if it shall appear to the director of finance that the income from the city is not fairly and equitably reflected under the provisions of either subdivision (b) or subdivision (c).(e) 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 subdivisions (b), (c), or (d), but shall be considered as entirely derived from or connected with the state, other than this state, in which such property is located or, if such property is located in this state, the political subdivision thereof.N.Y. General City Model Law § 107