The percentage of net income apportioned to the City or County for air and ground passenger transportation (airline, bus, and rail) who do business within the City or County may be determined using either of the following methods:
a. Departure Method. The following formula applies for this method:
# Local Departures / # Departures Everywhere = Apportionment %
In the airline industry, different types of aircraft differentiate revenues (as with jumbo jets versus smaller planes). Airlines may determine apportionable revenues in the following manner:
Type 1 plane gross revenues X % of local departures of Type 1 planes +
Type 2 plane gross revenues X % of local departures of Type 2 planes, etc.
Example: Airline ZED has 100 departures locally during the year. Airline ZED has 5,000 departures during the year everywhere. This equates to an apportionment of 2%. However, Airline ZED receives a large portion of its income from flying jumbo jets out of Los Angeles and Seattle. Airline ZED has 2,000 departures everywhere which represent jumbo jets--only 10 of these jumbo jet departures are local departures. Therefore, Airline ZED may make the following apportionment determination:
| - | Jumbo Jet | Regular Jet | Total |
|---|---|---|---|
| Everywhere Departures | 2000 | 3000 | 5000 |
| Local Departures | 10 | 90 | 100 |
| Local Percentage | .5% (1/2 of 1%) | 3% | 2 % (average) |
| Gross Revenues | 10,000,000 | 5,000,000 | 15,000,000 |
| Local Revenues | 50,000 | 150,000 | 200,000 |
200,000/15,000,000=Redetermined Apportionment: 1.3333%