Changes How Companies Are Taxed on Sales
Virginia · HB609 · Introduced Jan 13, 2026
Why it matters
Companies selling services or intangible items to Virginia customers could owe more or less corporate income tax, depending on how sales are counted.
What it does
- Changes how companies figure which sales count as Virginia sales for corporate income tax
- Sets a $100,000 Virginia sales threshold for certain sales to count as Virginia sales
- Lets telecommunications companies choose a sales-sourcing method for 2027 through 2032
- Repeals two 2022 law provisions that set rules for these sales
Status
Latest action (2026-07-21): Continued from last session
About this bill
Would change how Virginia counts corporate sales of services and intangible property for income tax. Telecommunications companies could choose a different method from 2027 to 2033.
Income tax, corporate; sourcing of sales, other than sales of tangible personal property.
Perspectives
💬 The case for
Some state tax groups would likely say the bill closes gaps in how sales are counted. They may argue it makes taxes fairer across companies.
💬 The case against
Some business groups would likely say the new rules add costs and paperwork. They may argue the changes could raise taxes on companies selling into Virginia.
Sponsored by
Sponsor details for this state bill are at the source link.
News
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