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2023 SESSION

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SB 1349 Internet root infrastructure providers; taxation of corporations, apportionment.

Introduced by: George L. Barker | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Taxation of corporations; apportionment; Internet root infrastructure providers. Provides that Internet root infrastructure providers, defined in the bill, that meet certain criteria and choose to enter into a memorandum of understanding with the Virginia Economic Development Partnership Authority may use a hybrid sales factor in their income apportionment calculations when filing Virginia corporate income tax returns. The bill is effective for taxable years beginning on and after January 1, 2023, provided that the provider and the Authority enter into an MOU no later than December 1, 2023. This bill is identical to HB 1481.

SUMMARY AS PASSED SENATE:

Taxation of corporations; apportionment; Internet root infrastructure providers. Provides that Internet root infrastructure providers, defined in the bill, that meet certain criteria and choose to enter into a memorandum of understanding with the Virginia Innovation Partnership Authority may use a hybrid sales factor in their income apportionment calculations when filing Virginia corporate income tax returns. The bill is effective for taxable years beginning on and after January 1, 2023, provided that the provider and the Authority enter into an MOU no later than December 1, 2023.

SUMMARY AS INTRODUCED:

Taxation of corporations; apportionment; Internet root infrastructure providers. Provides that sales of services by Internet root infrastructure providers, defined in the bill, are deemed to be in the Commonwealth for corporate income tax purposes if they are derived from sales transactions with a customer or client that receives the benefit of the services in the Commonwealth.