Virginia would count some business sales where customers use them

The introduced text would count some service and property sales as Virginia sales based on where customers receive or use them. The rules cover sales other than sales of physical goods, including real estate, services, and some intangible property, such as licenses. The text also includes a $100,000 Virginia-sales threshold and an income-producing-activity test, but lost amendment formatting makes their relationship unclear. The text says its provisions would apply to tax years beginning on or after January 1, 2027.

The introduced text sets special sales rules for certain businesses and lets telecommunications companies choose another method. These provisions concern debt buyers, qualifying property information and analytics firms, qualifying Internet root infrastructure providers, and telecommunications companies. Debt buyers’ sales include money collected from Virginia residents or businesses based here, regardless of where the debt buyer operates. Property information and analytics firms and Internet root infrastructure providers are covered only if they meet stated requirements, including certifications. Telecommunications companies may elect to use the income-producing-activity method. Once elected, the method generally cannot be changed for later years without written approval from the Tax Commissioner. The telecommunications election would be available for tax years beginning on or after January 1, 2027, and before January 1, 2033.