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Department of Taxation
Department of Taxation
Mandate 816

Mandate Information
Mandate Title:
License tax, local; methodology for deducting certain gross receipts.
Purpose of legislation
Requires the Department of Taxation to promulgate regulations that clarify the appropriate methodology for determining deductible gross receipts attributable to business conducted in another state or a foreign country. The bill requires the regulations to be based on previous Rulings of the Tax Commissioner and the decision of the Supreme Court of Virginia in The Nielsen Company, LLC v. County Board of Arlington County, 289 Va. 79 (2015). In that decision, the Court endorsed the Tax Commissioner's ruling to require manual accounting but to allow payroll apportionment in the event that manual accounting is impossible to use in order to calculate the deduction.
Legislation mandating a change Chap 50 (2017)
VAC chapters to be amended
23 vac 10 - 500 : Business, Professional and Occupational License Tax RegulationS
Associated Regulatory Actions
Action 4740: To Amend the BPOL Tax Regulation to Reflect a Recent Decision of the Virginia Supreme Court
Latest Stage: Fast-Track
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