→
Previous
Latest
SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY –– CHAPTER E An Act to amend and reenact § 58.1-416 of the Code of Virginia and to amend the Code of Virginia by infrastructure providers.
VIRGINIA ACTS OF ASSEMBLY -- 2023 SESSION CHAPTER 406 An Act to amend and reenact § 58.1-416 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 58.1-422.5, relating to taxation of corporations;
58.1-422.5, relating to taxation of corporations;
Internet root infrastructure providers.
Internet root R O [S 1349] L Approved L Be it enacted by the General Assembly of Virginia:
[S 1349] Approved March 23, 2023 Be it enacted by the General Assembly of Virginia:
E 1.
1.
That § 58.1-416 of the Code of Virginia is amended and reenacted and that the Code of VirginDa is § 58.1-416.
That § 58.1-416 of the Code of Virginia is amended and reenacted and that the Code of Virginia is amended by adding a section numbered 58.1-422.5 as follows:
§ 58.1-416.
or 2.
or proportion of the income-producing activity is performed in the Commonwealth than in any other state, based on costs of performance.
The income-producing activity is performed both in and outside the Commonwealth and a greater proportion of the income-producing activity is performed in the Commonwealth than in any other state, based on costs of performance.
For debt buyers, as defined in § 58.1-422.3, sales, other than sales of tangible persoBal property, are in the Commonwealth if they consist of money recovered on debt that a debt buyer 3 domicile in the Commonwealth.
For debt buyers, as defined in § 58.1-422.3, sales, other than sales of tangible personal property, are in the Commonwealth if they consist of money recovered on debt that a debt buyer collected from a person who is a resident of the Commonwealth or an entity that has its commercial domicile in the Commonwealth.
Such rule shall apply regardless of the location of a debt buyer'9al business.
Such rule shall apply regardless of the location of a debt buyer's business.
E 2.
2.
For property information and analytics firms, as defined in § 58.1-422.4, that meet the R requirements set forth in § 58.1-422.4, sales of services are in the Commonwealth if they are derived from transactions with a customer or client who receives the benefit of the services in the Commonwealth.
For property information and analytics firms, as defined in § 58.1-422.4, that meet the requirements set forth in § 58.1-422.4, sales of services are in the Commonwealth if they are derived from transactions with a customer or client who receives the benefit of the services in the Commonwealth.
For Internet root infrastructure providers, as defined in § 58.1-422.5, sales of services are in the benefit of the services in the Commonwealth.
For Internet root infrastructure providers, as defined in § 58.1-422.5, sales of services are in the Commonwealth if they are derived from sales transactions with a customer or client who receives the benefit of the services in the Commonwealth.
If necessary information is not available to the taxpayer to determine whether a sale other than a and C, the taxpayer may estimate the dollar value or portion of such sale in the Commonwealth,tions B provided that the taxpayer can demonstrate to the satisfaction of the Tax Commissioner that (i) the estimate has been undertaken in good faith, (ii) the estimate is a reasonable approximation of the dollar value or portion of such sale in the Commonwealth, and (iii) in using an estimate the taxpayer did not have as a principal purpose the avoidance of any tax due under this article.
If necessary information is not available to the taxpayer to determine whether a sale other than a sale of tangible personal property is in the Commonwealth pursuant to the provisions of subsections B and C, the taxpayer may estimate the dollar value or portion of such sale in the Commonwealth, provided that the taxpayer can demonstrate to the satisfaction of the Tax Commissioner that (i) the estimate has been undertaken in good faith, (ii) the estimate is a reasonable approximation of the dollar value or portion of such sale in the Commonwealth, and (iii) in using an estimate the taxpayer did not have as a principal purpose the avoidance of any tax due under this article.
The Department shall adopt remedies and corrective procedures for cases in which the Department has determined that the sourcing rules for sales other than sales of tangible personal property have been abused by the taxpayer, which described in subsection A.e location of income-producing activity and direct costs of performance as § 58.1-422.5.
The Department shall adopt remedies and corrective procedures for cases in which the Department has determined that the sourcing rules for sales other than sales of tangible personal property have been abused by the taxpayer, which may include reliance on the location of income-producing activity and direct costs of performance as described in subsection A.
§ 58.1-422.5.
This term does not"Internet root server of the IANA root" means a Domain Name System server for one of the 13 root identities (A.
This term does not include an Internet service provider, cable service provider, or similar company.
- M.) that answers requests for the Domain Name System root zone of the Internet, of 3 redirecting requests for each Top-Level Domain to its respective nameservers.
"Internet root server of the IANA root" means a Domain Name System server for one of the 13 root identities (A.
"Memorandum of understanding" means a performance agreement or related document entered into by an Internet root infrastructure provider and the Authority on or after January 1, 2023, but before December 1, 2023, that sets forth the requirements for commitments to the Commonwealth.
- M.) that answers requests for the Domain Name System root zone of the Internet, redirecting requests for each Top-Level Domain to its respective nameservers.
"Memorandum of understanding" means a performance agreement or related document entered into of 3 by an Internet root infrastructure provider and the Authority on or after January 1, 2023, but before December 1, 2023, that sets forth the requirements for commitments to the Commonwealth.
If such memorandum of understanding is not signed by December 1, 2023, the provisions of subdivision B 3 of § 58.1-416 of the Code of Virginia, as amended by this act, shall not be applicable in any of 3 taxable year beginning on or after January 1, 2023.
If such memorandum of understanding is not signed by December 1, 2023, the provisions of subdivision B of § 58.1-416 of the Code of Virginia, as amended by this act, shall not be applicable in any taxable year beginning on or after January 1, 2023.
That the Virginia Economic Development Partnership Authority shall provide, upon sigEature, a created by this act, to the Chairmen of the House Committee on Finance, the House Committee ons Appropriations, and the Senate Committee on Finance and Appropriations.
That the Virginia Economic Development Partnership Authority shall provide, upon signature, a copy of any memorandum of understanding, as defined in § 58.1-422.5 of the Code of Virginia, as created by this act, to the Chairmen of the House Committee on Finance, the House Committee on Appropriations, and the Senate Committee on Finance and Appropriations.
The provisions Rf this 31, 2023.
The provisions of this of 3 act shall expire if copies of such memorandum of understanding are not delivered by December 31, 2023.
expire if copies of such memorandum of understanding are not delivered by December O L L E D B E R
⬇ Download PDF