License taxes; deduction for out-of-state receipts; work group; report. Provides that, for purposes of the license tax deduction for out-of-state receipts, such receipts shall be determined based upon the facts and circumstances of the taxpayer's business operation, without regard to the amount of income, receipts, or revenue ultimately computed as taxable under the methodology used by the state or country to which such receipts are attributable. The bill defines "income or other tax based upon income" as a net income tax, as defined in federal law, or any other tax the measure of which is based in whole or in part on gross or net income, or receipts. The bill has a delayed effective date with regard to such provisions of July 1, 2026. Finally, the bill directs the Department of Taxation to convene a work group to review the policies, methods, existing laws, and potential impacts of such license tax deduction and to submit a report of the findings and recommendations, if any, of the work group to the Chairs of the House Committee on Finance, the House Committee on Appropriations, and the Senate Committee on Finance and Appropriations by October 1, 2025.

Statutes affected:
Introduced: 58.1-3732
Finance Substitute : 58.1-3732