Virginia 2023 Regular Session Status: Enacted

SB 1346 — Taxable income apportionment; retail companies.

Last action — Acts of Assembly Chapter text (CHAP0039)

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House of Delegates
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 11, 2023. Enacted.

Signed by Governor Glenn Youngkin (Republican) on March 17, 2023.

Prognosis

Advancing 38% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Failed a recorded vote

    Failed 5 recorded votes so far — a real headwind.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

40 added · 40 removed

Plain-language change summary

The recent amendments to SB 1346 adjust how taxable income for retail companies is calculated in Virginia. Key changes include modifying the formulas used to apportion income, notably the number of times the sales factor is multiplied in certain calculations. This is important because it can affect how much tax retail businesses pay, potentially easing their tax burden or altering revenue projections for the state. By making these changes, the bill aims to create a more equitable and streamlined tax system for retail companies operating within Virginia.

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SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY –– CHAPTER E An Act to amend and reenact § 58.1-422.1 of the Code of Virginia, relating to taxable income N apportionment;
VIRGINIA ACTS OF ASSEMBLY -- 2023 SESSION CHAPTER 39 An Act to amend and reenact § 58.1-422.1 of the Code of Virginia, relating to taxable income apportionment;
R O [S 1346] L Approved Be it enacted by the General Assembly of Virginia:
[S 1346] Approved March 17, 2023 Be it enacted by the General Assembly of Virginia:
L 1.
1.
E § 58.1-422.1.
§ 58.1-422.1.
which is the property factor plus the payroll factor plus triple the sales factor and the denominator of which is five, except that when the sales factor does not exist, the denominator of the fraction shall be the number of existing factors, and when the sales factor exists but the payroll factor or property factor does not exist, the denominator of the fraction shall be the number of existing factors plus twS;
1.
From July 1, 2012, until July 1, 2014, by multiplying such income by a fraction, the numerator of which is five, except that when the sales factor does not exist, the denominator of the fraction shall be the number of existing factors, and when the sales factor exists but the payroll factor or property factor does not exist, the denominator of the fraction shall be the number of existing factors plus two;
From July 1, 2014, until July 1, 2015, by multiplying such income by a fraction, the nume1ator of which is the property factor plus the payroll factor plus quadruple the sales factor and the de4ominator the number of existing factors, and when the sales factor exists but the payroll factor or property factore does not exist, the denominator of the fraction shall be the number of existing factors plus three;
From July 1, 2014, until July 1, 2015, by multiplying such income by a fraction, the numerator of which is the property factor plus the payroll factor plus quadruple the sales factor and the denominator of which is six, except that when the sales factor does not exist, the denominator of the fraction shall be the number of existing factors, and when the sales factor exists but the payroll factor or property factor does not exist, the denominator of the fraction shall be the number of existing factors plus three;
As used in this section, "retail company" means a domestic or foreign corporation primarily engaged in activities that, in accordance with the North American Industry Classification System (NAICS), United States Manual, United States Office of Management and Budget, 1997 Edition, would be C.
As used in this section, "retail company" means a domestic or foreign corporation primarily engaged in activities that, in accordance with the North American Industry Classification System (NAICS), United States Manual, United States Office of Management and Budget, 1997 Edition, would be included in Sectors 44-45.
C.
the meaning of § 58.1-302 and filing on a consolidated basis may elect to apportion the taxable income of all members of such affiliated group using the sales factor alone notwithstanding that one or more members of such affiliated group would be required to use different apportionment factors if separate returns were filed.
D.
For taxable years beginning on or after January 1, 2023, corporations that are affiliated within the meaning of § 58.1-302 and filing on a consolidated basis may elect to apportion the taxable income of all members of such affiliated group using the sales factor alone notwithstanding that one or more members of such affiliated group would be required to use different apportionment factors if separate returns were filed.
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Action History

  1. Acts of Assembly Chapter text (CHAP0039)

  2. Approved by Governor-Chapter 39 (effective 7/1/23)

  3. Governor's Action Deadline 11:59 p.m., March 27, 2023

  4. Enrolled Bill Communicated to Governor on March 2, 2023

  5. Impact statement from TAX (SB1346ER)

  6. Signed by President

  7. Signed by Speaker

  8. Bill text as passed Senate and House (SB1346ER)

  9. Enrolled

  10. VOTE: Block Vote Passage (98-Y 0-N)

  11. Passed House BLOCK VOTE (98-Y 0-N)

  12. Read third time

  13. Read second time

  14. Reported from Finance (17-Y 0-N)

  15. Referred to Committee on Finance

  16. Read first time

  17. Placed on Calendar

  18. Read third time and passed Senate (36-Y 4-N)

  19. Read second time and engrossed

  20. Constitutional reading dispensed (38-Y 0-N)

  21. Reported from Finance and Appropriations (9-Y 7-N)

  22. Impact statement from TAX (SB1346)

  23. Referred to Committee on Finance and Appropriations

  24. Prefiled and ordered printed; offered 01/11/23 23102545D

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 147 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (147)

147 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors SB 1346?
SB 1346 is sponsored by Barker, George L..
What is the current status of SB 1346?
This bill has been enacted into law. Introduced January 11, 2023. Enacted.
Where can I track SB 1346?
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