Bill > HB609

This bill, effective for taxable years beginning on or after January 1, 2027, shifts how Virginia sources corporate income tax for sales other than tangible personal property, moving from a "cost of performance" method to a "market-based" approach. This means that sales will be attributed to Virginia if the market for those sales is in the Commonwealth and the company's sales in Virginia exceed $100,000 annually. Specific rules are provided for sourcing sales of real property (based on location), services (based on where the benefit is received), and intangible property (based on where it's used or marketed). The bill also includes provisions for debt buyers, defense contractors, and allows telecommunications companies a temporary election to use the old "cost of performance" method. Additionally, it adjusts the timelines for certain tax provisions related to property information and analytics firms and internet root infrastructure providers, effectively aligning them with the new sourcing rules.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/HB609