During the 2009 session, the Virginia General Assembly passed legislation HB 2437, which modifies the corporate apportionment formula.  The legislation allows manufacturers to elect an apportionment formula based on sales to determine their Virginia taxable income.  The modification is phased-in as follows:

• for taxable years beginning on or after July 1, 2011, but before July 1, 2013, qualifying corporations may elect to use a triple-weighted sales factor;
• for taxable years beginning on or after July 1, 2013, but before July 1, 2014, qualifying corporations may elect to use a quadruple-weighted sales factor; and
• for taxable years beginning on or after July 1, 2014, and thereafter, qualifying corporations may elect to use the single sales factor method to apportion Virginia taxable income.

The Virginia Department of Taxation published a draft of the guidelines on the Corporate Apportionment for Manufacturers (Single Sales Factor) website. 

The current guideline process allows for a 60-day comment period immediately after a public draft has been distributed.  Accordingly, the Virginia Department of Taxation will be accepting public comments on the draft through December 5, 2011.  To submit changes, email: todd.gathje@tax.virginia.gov.