Bill Text: VA SB515 | 2014 | Regular Session | Chaptered
Bill Title: Domestic international sales corporations (DISC); exempt from income taxation.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2014-03-05 - Governor: Acts of Assembly Chapter text (CHAP0186) [SB515 Detail]
Download: Virginia-2014-SB515-Chaptered.html
Be it enacted by the General Assembly of Virginia: 1. That §58.1-401 of the Code of Virginia is amended and reenacted as follows: §58.1-401. Exemptions and exclusions. No tax levied pursuant to § 1. A public service corporation to the extent such corporation is subject to the license tax on gross receipts contained in Chapter 26 (§ 58.1-2600 et seq.) of this title; 2. Insurance companies to the extent such company is subject to the license tax on gross premiums under Chapter 25 (§58.1-2500 et seq.) of this title and reciprocal or interinsurance exchanges which pay a premium tax to the Commonwealth as provided by law; 3. State and national banks, banking associations and trust companies to the extent such companies are subject to the bank franchise tax on net capital; 3a. Credit unions organized and conducted as such under the laws of the Commonwealth or under the laws of the United States; 4. Electing small business corporations (S corporations); 5. Religious, educational, benevolent and other corporations not organized or conducted for pecuniary profit which by reason of their purposes or activities are exempt from income tax under the laws of the United States, except those organizations which have unrelated business income or other taxable income under such laws, except as provided in §58.1-400.2; 6. Telephone companies chartered in the Commonwealth which are exclusively a local mutual association and are not designated to accumulate profits for the benefit of, or to pay dividends to, the stockholders or members thereof; 7. A corporation that has contracted with a commercial printer
for printing and that is not otherwise taxable shall not become taxable by
reason of: (i) the ownership or leasing by that corporation of tangible
personal property located at the Virginia premises of the commercial printer
and used solely in connection with the printing contract with such person; (ii)
the sale by that corporation at another location of property of any kind
printed at and shipped or distributed from the Virginia premises of the
commercial printer; (iii) the activities in connection with the printing
contract with such person of any kind performed by or on behalf of that
corporation at the Virginia premises of the commercial printer; and (iv) the
activities in connection with the printing contract with such person performed
by the commercial printer for or on behalf of that corporation; 8. Foreign sales corporations (FSC) and any income attributable to an FSC under the rules relating to the taxation of an FSC in Part III, Subpart C of the Internal Revenue Code (§921 et seq.) and the regulations thereunder; and 9. For taxable years beginning on or after January 1, 2014, domestic international sales corporations (DISC) under the rules relating to the taxation of a DISC in Part IV, Subpart A of the Internal Revenue Code (§ 991 et seq.) and the regulations thereunder. |