Shaking things up in state and local tax
Shaking things up in state and local tax
Virginia has a longstanding administrative policy requiring blended apportionment for corporate partners of partnerships engaged in business in the Commonwealth. A Virginia Department of Taxation bulletin changed that treatment relating to non-unitary partnerships.
In 2024, the Virginia Court of Appeals in Commonwealth v. FJ Management, Inc. ruled that a corporate partner (LLC member) that was…
In a recent letter ruling, the Virginia Tax Commissioner granted a corporate taxpayer relief from Virginia’s intercompany interest add‑back requirement, concluding that the taxpayer satisfied the statutory business purpose exception.
The case arose from a centralized cash management structure in which subsidiaries deposited cash with the parent entity and relied on intercompany loans when they…
The Virginia Tax Commissioner determined that a taxpayer’s gross receipts from refueling services performed under government contracts at U.S. military installations in a foreign country were properly sourced to its place of performance abroad, concluding that the totality of the circumstances established that the taxpayer had a “definite place of business” at those foreign locations…
The Virginia Court of Appeals recently held that the Virginia Department of Taxation cannot make it a requirement for a corporation to include the income and factors of a 17% owned LLC with its own income and factors as a unitary business. The taxpayer obtained the interest in question in exchange for the sale of…
The Virginia General Assembly passed the 2024-2026 Biennium Budget (House Bill 30) that would expand the sales and use tax to “digital personal property” and certain digital “taxable services” as of January 1, 2025.
The General Assembly’s conference report resolved differences between the House and Senate budgets, respectively, on the sales tax treatment…
Governor Glenn Youngkin has issued his proposed Virginia 2024 – 2026 Budget Bill. The Budget Bill would make three notable changes to Virginia’s tax structure, all of which would take effect on January 1, 2025: (1) increase the sales and use tax rate; (2) expand the sales and use tax base to digital products; and…
In a June 1, 2023 determination, the Virginia commissioner concluded that a Virginia data center operator was entitled to a sales and use tax refund on its equipment purchases, regardless of whether they were delivered to a storage facility prior to delivery to the data center.
Virginia allows a sales and use tax exemption for…
The Court of Appeals of Virginia, upholding the trial court’s decision, held that the successor to The C. F. Sauer Company could elect the manufacturer’s apportionment method for the first time on its amended tax return. By doing so, the court (preliminarily*) paved the way for qualifying taxpayers to take a wait and see approach…
The Supreme Court of Virginia recently upheld a circuit court decision invalidating a county’s plan to claw back tax refunds because it violated the state constitution’s uniform taxation requirement.
The Isle of Wight County changed the valuation methodology for its machinery and tools tax (“M&T tax”), resulting in approximately $5.6 million in refunds for tax…
In an opinion published on September 9, 2022, the Circuit Court of the City of Richmond held that a telecommunications equipment company was entitled to a sales tax refund on its sales of software, equipment, and related services sold to a telecommunications company.
Under Virginia law, software delivered electronically via the Internet is exempt from…
