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2013 SESSION

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13100295D
SENATE BILL NO. 745 Offered January 9, 2013 Prefiled December 14, 2012 A BILL to amend and reenact § 58.1-400 of the Code of Virginia, relating to corporate income tax rate for certain businesses. ---------- Patron-- Stanley ---------- Referred to Committee on Finance ----------

Be it enacted by the General Assembly of Virginia:

1.  That § 58.1-400 of the Code of Virginia is amended and reenacted as follows:

§ 58.1-400. Imposition of tax.

A. A tax at the rate of six percent is hereby annually imposed on the Virginia taxable income for each taxable year of every corporation organized under the laws of the Commonwealth and every foreign corporation having income from Virginia sources.

B. For taxable years beginning on or after January 1, 2013, for every corporation located outside Virginia that opens a satellite office in a Virginia locality with a population of 200,000 or less, and for every corporation located in a Virginia locality with a population in excess of 200,000 that opens a satellite office or operation in a Virginia locality with a population of 200,000 or less, the rate of tax imposed hereunder shall be three percent for the first three taxable years such satellite office is in operation. Beginning in the fourth taxable year and thereafter of such satellite offices or operation, the tax rate shall be six percent.

In order for the taxpayer to be eligible for the reduced tax rate provided in this subsection, the taxpayer shall have (i) made a capital investment for the new satellite office or operation of at least $250,000 and (ii) hired five or more full-time employees, as defined in § 2.2-903.1, or reduced the commuting distance to less than 10 miles for at least five existing full-time employees. In no event shall the tax reduction provided by the reduced tax rate exceed the actual capital investment expended by the taxpayer in establishing the satellite office or operation in accordance with this subsection.