SB722: Income tax, corporate; apportionment of revenue.
SENATE BILL NO. 722
Be it enacted by the General Assembly of Virginia:
1. That § 58.1-421 of the Code of Virginia is amended and reenacted as follows:
§ 58.1-421. Alternative method of allocation.
If any corporation believes that the method of allocation or
apportionment hereinbefore prescribed as administered by the Department has
operated or will so operate as to subject it to taxation on a greater portion
of its Virginia taxable income than is reasonably attributable to business or
sources within this the
Commonwealth, it shall be entitled to file with the Department a statement of
its objections and of such alternative method of allocation or apportionment as
it believes to be proper under the circumstances with such detail and proof and
within such time as the Department may reasonably prescribe. If the Department
concludes that the method of allocation or apportionment theretofore employed
is in fact inapplicable or inequitable, it shall redetermine the taxable income
by such other method of allocation or apportionment as seems best calculated to
assign to the Commonwealth for taxation the portion of the income reasonably
attributable to business and sources within the Commonwealth, not exceeding,
however, the amount which that would be arrived at by
application of the statutory rules for allocation or apportionment. In determining whether the method of allocation or
apportionment is inapplicable or inequitable, the Commissioner shall consider
whether such method results in the Commonwealth taxing a greater portion of the
income of the corporation than may be
reasonably attributable to business or sources
within the Commonwealth, due in
whole or in part to the use of a different method of allocation and
apportionment by a majority of other states that is inconsistent with the
method set forth in § 58.1-416.