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owners if they were required to travel any distance to work. (2) The business is not part of a commercial enterprise having at least one other establish- ment not being acquired by the Sponsor which is engaged in the same or similar busi- ness. (3) That during the two taxable years prior to displacement, or during such other period as the Sponsor determines to be more equitable, the business: (a) Had an average annual gross receipts of at Least $2,000 in value; or (b) Had average annual net earnings of at least $1,000 in value; or (c) Contributed at least 33%3 percent of the average gross annual income of the owner(s), including income from all sources, such as welfare. (d) If the application of the above criteria obviously creates an inequity in any given case, the Sponsor, with FAA concurrence, may approve the use of other criteria as determined appropriate. b. Payment Determination. The term "average annual net earnings" means one-half of the sum of any net earnings of the business before Federal, State, and local taxes, during the 2 taxable years immediately preceding the taxable year in which the business is relocated. (1) If the 2 taxable years immediately preceding displacement are not representative, the Sponsor, with prior approval from the ap- propriate FAA official, may use a 2-year period beginning with 2 years prior to nego- tiations for the project as a more repre- sentative income period. Before using this alternate procedure, it must be determined that the proposed airport development proj- ect has bbeen the cause of the outflow of resi- dents, thereby resulting in a decline in net income for the business. (2) "Average annual net earnings" include any compensation paid by the business to the owner, his spouse, or his dependents during the two year period. In the case of a corporate owner of a business, earnings shall include any compensation paid to the spouse or de- pendents of the owner of a majority interest in the corporation. For the purpose of deter- mining majority ownership, stock held by 48 husband, his wife, and their dependent chil- dren shall be treated as one unit. c. In Business Less Than 2 Years. If the business affected can show that it was in operation for a minimum of 12 consecutive months during the 2 taxable years prior to the taxable year in which it is required to relocate, had income during such period and is otherwise eligible, the owner of a business is eligible to receive the "in lieu of moving" pay- ment. In this situation, the payment will be com- puted by dividing the net earnings by the number of months the business was operated and multiplying by 12. A taxable year is defined as any 12-month period used by the business in filing income tax returns. d. Owner Must Provide Information. For the owner of a business to be entitled to his payment, the business must provide information to the Spon- sor to support its net earnings. City, county, State, or Federal tax returns for the tax years in question are the best source of this information and would' be ac- ceptable as evidence of earnings. Any commonly acceptable method could be accepted such as certi- fied financial statements or an affidavit from the owner stating his net earnings providing he grants the Sponsor the right to review the records and ac- counts of the business. The owner's statement alone would not be sufficient if the amount claimed ex- ceeded the minimum payment of $2,500. e. Multifamily Structures. When multifamily structures reasonably comparable to the structure being acquired are not available, the owner may be entitled to an "in lieu of moving" payment. If a multifamily structure is available that has lesser units than the acquired property, the "substantial loss of existing patronage" determination is based not on the loss of living units but upon the estimated net annual average dollar volume difference in the two structures. If the income is not expected to decrease from that derived on the acquired prop- erty, an "in lieu of moving" payment may not be made even though there may be a loss in the number of living units. If the only comparables available are single family dwellings, the owner would be eligible for an "in lieu of moving" payment. 75. MOVING PAYMENTS TO FARM OP- ERATORS. a. Farm Moving Payment. The owner of a dis- placed farm operation eligible under guides de- scribed in paragraph 71a(1) is entitled to receive payments for actual reasonable moving expenses, actual direct losses of tangible personal property and • • • • i