Bill > HB956

This bill clarifies how businesses can deduct receipts from out-of-state operations when calculating their license taxes. Previously, the law allowed deductions for business conducted in other states or foreign countries where the business was liable for an "income or other tax based upon income." This bill specifies that these out-of-state receipts should be determined by the actual facts and circumstances of the business's operations, regardless of how the other state or country calculates its taxable income or receipts. It also defines "income or other tax based upon income" to include a net income tax, as defined by federal law, or, if no such tax exists, a business activity tax that is based on gross or net income or receipts. This change aims to provide a more consistent and fair method for calculating these deductions.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/HB956