LIS

Virginia Law

Administrative Code

Creating a Report: Check the sections you'd like to appear in the report, then use the "Create Report" button at the bottom of the page to generate your report. Once the report is generated you'll then have the option to download it as a pdf, print or email the report.

Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 120. Corporation Income Tax
12/26/2024

23VAC10-120-81. Telecommunications companies; tax administration.

A. Generally. Effective for taxable years beginning on and after January 1, 1989, telecommunications companies formerly subject to the license tax on gross receipts, administered by the State Corporation Commission (SCC), will be subject to the Virginia corporation income tax. This change is the result of legislation enacted by the 1988 Virginia General Assembly (1988 Acts, Chapter 899).

B. State Corporation Commission. While no longer subject to the state license tax on gross receipts or to the state pole line tax, telecommunications companies will still pay regulatory revenue taxes to the SCC based on gross receipts (§§ 58.1-2660 through 58.1-2665 of the Code of Virginia). The SCC will continue to be the central state agency responsible for the assessment of all property of telecommunications companies.

The SCC will make all determinations regarding a company's status as a telecommunications company. The SCC will determine and certify the amount of gross receipts, as defined by law, to the department annually.

Telecommunications companies may petition the SCC for review and correction of the company's status or the amount of gross receipts certified. The petition should be in compliance with the Rules of Practice and Procedures of the SCC.

C. Department of Taxation. For taxable years beginning on and after January 1, 1989, telecommunications companies will be subject to the greater of the Virginia corporation income tax or to a minimum tax based on gross receipts. In order to minimize the effects of the transition from the license tax on gross receipts to the corporation income tax, the full corporate income tax will be phased in over a 10-year period from 1989 through 1998. During this phase in period, telecommunications companies, which pay the corporate income tax, may be allowed a credit against the tax under certain conditions. If a company is subject to the minimum tax, it will not be eligible for a credit.

D. Other regulations. Except as provided in this regulation, the provisions of all regulations adopted pursuant to § 58.1-203 of the Code of Virginia to interpret Title 58.1 of the Code of Virginia are applicable to the taxation of telecommunications companies by the Department of Taxation.

Statutory Authority

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

Historical Notes

Derived from VR630-3-400.1 § 2, eff. January 3, 1990.

Website addresses provided in the Virginia Administrative Code to documents incorporated by reference are for the reader's convenience only, may not necessarily be active or current, and should not be relied upon. To ensure the information incorporated by reference is accurate, the reader is encouraged to use the source document described in the regulation.

As a service to the public, the Virginia Administrative Code is provided online by the Virginia General Assembly. We are unable to answer legal questions or respond to requests for legal advice, including application of law to specific fact. To understand and protect your legal rights, you should consult an attorney.