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Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 120. Corporation Income Tax
1/27/2023

23VAC10-120-80. Telecommunications companies; definitions.

The following words and terms, when used in this chapter, shall have the following meanings unless the context clearly indicates otherwise:

"Calendar year" means a 12-month period beginning on January 1 and ending on December 31.

"Company" means a telecommunications company as certified by the State Corporation Commission to the Department of Taxation.

"Department" means the Department of Taxation.

"Gross receipts" means the amount of "gross receipts" certified to the Department of Taxation by the State Corporation Commission. This amount is defined in § 58.1-400.1 of the Code of Virginia to mean "all revenue from business done within the Commonwealth, including the proportionate share of interstate revenue attributable to the Commonwealth, if such inclusion will result in annual gross receipts exceeding $5 million, with the following deductions:

1. Revenue billed on behalf of another such telephone company or person to the extent such revenues are later paid over to or settled with that telephone company or person; and

2. Revenues from carrier access charges received from a telephone company which is holding a certificate of public convenience and necessity from the State Corporation Commission or from a telephone utility company providing interstate communications service, together with all revenue from billing and collection amounting to less than $500,000 per year, and all revenues from shared network facilities agreements established under federal court order and like revenue received by other local exchange carriers."

"License tax" means the tax imposed on a telecommunications company under Article 2 of Chapter 26 (§ 58.1-2600 et seq.) of the Code of Virginia.

"Minimum tax on telecommunications companies" or "minimum tax" means an amount of tax computed as a specified percent of the gross receipts of a telecommunications company pursuant to § 58.1-400.1 of the Code of Virginia.

"NOL" means net operating loss.

"NOLD" means net operating loss deductions.

"SCC" means the State Corporation Commission

"Sales" means the gross receipts of the telecommunications company from all sources not allocated under § 58.1-407 of the Code of Virginia regardless of whether or not such receipts are included in the amount of gross receipts, as defined above.

"Taxable year" means the calendar or fiscal year for federal income tax purposes.

"Telecommunications company" means a company certified to the Department of Taxation by the State Corporation Commission as a telecommunications company. Such a company is defined in § 58.1-400.1 of the Code of Virginia to mean a telephone company or other person holding a certificate of convenience and necessity granted by the State Corporation Commission authorizing local exchange telephone service, interexchange service, radio common carrier system or a cellular mobile radio communications system, or holding a certificate issued pursuant to § 214 of the Communications Act of 1934, as amended, authorizing telephone service; or a telegraph company or other person operating the apparatus necessary to communicate by telegraph.

"Telecommunications company income tax credit" means an amount computed with regard to the gross receipts of a telecommunications company available to offset the corporate income tax imposed on such company under § 58.1-400 of the Code of Virginia.

Statutory Authority

§§ 58.1-203 and 58.1-400.1 of the Code of Virginia.

Historical Notes

Derived from VR630-3-400.1 § 1, eff. January 3, 1990.

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