§ 58.1-400.1. Minimum tax on telecommunications companies.
A. A telecommunications company that is incorporated shall be subject to aminimum tax, instead of the corporate income tax imposed by § 58.1-400, atthe applicable rate on its gross receipts for the calendar year which endsduring the taxable year if the tax imposed by § 58.1-400 is less than theminimum tax imposed by this section. A telecommunications company that isorganized as a limited liability company, partnership, corporation that hasmade an election under subchapter S of the Internal Revenue Code, or otherentity treated as a pass-through entity shall be subject to the minimum taxin the manner prescribed by regulation.
The minimum tax shall be imposed at the rate of 0.5 percent of gross receipts.
B. In the case of an income tax return for a period of less than twelvemonths, the minimum tax shall be based on the gross receipts for the calendaryear which ends during the taxable period or, if none, the most recentcalendar year which ended before the taxable period. The minimum tax shall beprorated by the number of months in the taxable period.
C. The State Corporation Commission shall certify to the Department for eachtax year as defined in § 58.1-2600 the name, address, and gross receipts foreach telecommunications company. The Commission shall mail or otherwisedeliver a copy of the certification to each affected telecommunicationscompany.
D. The following words and terms, when used in this section, shall have thefollowing meanings:
"Gross receipts" means all revenue from business done within theCommonwealth, including the proportionate part of interstate revenueattributable to the Commonwealth if such inclusion will result in annualgross receipts exceeding $5 million, with the following deductions:
1. Revenue billed on behalf of another such telephone company or person tothe extent such revenues are later paid over to or settled with that companyor person; and
2. Revenues received from a telecommunications company, or from a telephoneutility company providing interstate communications service, for providing tothe company any of the following: (i) unbundled network facilities, (ii)completion, origination or interconnection of telephone calls with thetaxpayer's network, (iii) transport of telephone calls over taxpayer'snetwork, or (iv) taxpayer's telephone services for resale.
"Telecommunications company" means a telephone company or other personholding a certificate of convenience and necessity granted by the StateCorporation Commission authorizing telephone service; or a person authorizedby the Federal Communications Commission to provide commercial mobile serviceas defined in § 332(d)(1) of the Communications Act of 1934, as amended,where such service includes cellular mobile radio communications services orbroadband personal communications services; or a person holding a certificateissued pursuant to § 214 of the Communications Act of 1934, as amended,authorizing domestic telephone service and belonging to an affiliated groupincluding a person holding a certificate of convenience and necessity grantedby the State Corporation Commission authorizing telephone service; or atelegraph company or other person operating the apparatus necessary tocommunicate by telegraph. The term "affiliated group" shall have themeaning given in § 58.1-3700.1.
(1988, c. 899; 1995, c. 507; 1998, c. 897; 2000, c. 368; 2009, cc. 37, 152.)
§ 58.1-400.1. Minimum tax on telecommunications companies.
A. A telecommunications company that is incorporated shall be subject to aminimum tax, instead of the corporate income tax imposed by § 58.1-400, atthe applicable rate on its gross receipts for the calendar year which endsduring the taxable year if the tax imposed by § 58.1-400 is less than theminimum tax imposed by this section. A telecommunications company that isorganized as a limited liability company, partnership, corporation that hasmade an election under subchapter S of the Internal Revenue Code, or otherentity treated as a pass-through entity shall be subject to the minimum taxin the manner prescribed by regulation.
The minimum tax shall be imposed at the rate of 0.5 percent of gross receipts.
B. In the case of an income tax return for a period of less than twelvemonths, the minimum tax shall be based on the gross receipts for the calendaryear which ends during the taxable period or, if none, the most recentcalendar year which ended before the taxable period. The minimum tax shall beprorated by the number of months in the taxable period.
C. The State Corporation Commission shall certify to the Department for eachtax year as defined in § 58.1-2600 the name, address, and gross receipts foreach telecommunications company. The Commission shall mail or otherwisedeliver a copy of the certification to each affected telecommunicationscompany.
D. The following words and terms, when used in this section, shall have thefollowing meanings:
"Gross receipts" means all revenue from business done within theCommonwealth, including the proportionate part of interstate revenueattributable to the Commonwealth if such inclusion will result in annualgross receipts exceeding $5 million, with the following deductions:
1. Revenue billed on behalf of another such telephone company or person tothe extent such revenues are later paid over to or settled with that companyor person; and
2. Revenues received from a telecommunications company, or from a telephoneutility company providing interstate communications service, for providing tothe company any of the following: (i) unbundled network facilities, (ii)completion, origination or interconnection of telephone calls with thetaxpayer's network, (iii) transport of telephone calls over taxpayer'snetwork, or (iv) taxpayer's telephone services for resale.
"Telecommunications company" means a telephone company or other personholding a certificate of convenience and necessity granted by the StateCorporation Commission authorizing telephone service; or a person authorizedby the Federal Communications Commission to provide commercial mobile serviceas defined in § 332(d)(1) of the Communications Act of 1934, as amended,where such service includes cellular mobile radio communications services orbroadband personal communications services; or a person holding a certificateissued pursuant to § 214 of the Communications Act of 1934, as amended,authorizing domestic telephone service and belonging to an affiliated groupincluding a person holding a certificate of convenience and necessity grantedby the State Corporation Commission authorizing telephone service; or atelegraph company or other person operating the apparatus necessary tocommunicate by telegraph. The term "affiliated group" shall have themeaning given in § 58.1-3700.1.
(1988, c. 899; 1995, c. 507; 1998, c. 897; 2000, c. 368; 2009, cc. 37, 152.)
§ 58.1-400.1. Minimum tax on telecommunications companies.
A. A telecommunications company that is incorporated shall be subject to aminimum tax, instead of the corporate income tax imposed by § 58.1-400, atthe applicable rate on its gross receipts for the calendar year which endsduring the taxable year if the tax imposed by § 58.1-400 is less than theminimum tax imposed by this section. A telecommunications company that isorganized as a limited liability company, partnership, corporation that hasmade an election under subchapter S of the Internal Revenue Code, or otherentity treated as a pass-through entity shall be subject to the minimum taxin the manner prescribed by regulation.
The minimum tax shall be imposed at the rate of 0.5 percent of gross receipts.
B. In the case of an income tax return for a period of less than twelvemonths, the minimum tax shall be based on the gross receipts for the calendaryear which ends during the taxable period or, if none, the most recentcalendar year which ended before the taxable period. The minimum tax shall beprorated by the number of months in the taxable period.
C. The State Corporation Commission shall certify to the Department for eachtax year as defined in § 58.1-2600 the name, address, and gross receipts foreach telecommunications company. The Commission shall mail or otherwisedeliver a copy of the certification to each affected telecommunicationscompany.
D. The following words and terms, when used in this section, shall have thefollowing meanings:
"Gross receipts" means all revenue from business done within theCommonwealth, including the proportionate part of interstate revenueattributable to the Commonwealth if such inclusion will result in annualgross receipts exceeding $5 million, with the following deductions:
1. Revenue billed on behalf of another such telephone company or person tothe extent such revenues are later paid over to or settled with that companyor person; and
2. Revenues received from a telecommunications company, or from a telephoneutility company providing interstate communications service, for providing tothe company any of the following: (i) unbundled network facilities, (ii)completion, origination or interconnection of telephone calls with thetaxpayer's network, (iii) transport of telephone calls over taxpayer'snetwork, or (iv) taxpayer's telephone services for resale.
"Telecommunications company" means a telephone company or other personholding a certificate of convenience and necessity granted by the StateCorporation Commission authorizing telephone service; or a person authorizedby the Federal Communications Commission to provide commercial mobile serviceas defined in § 332(d)(1) of the Communications Act of 1934, as amended,where such service includes cellular mobile radio communications services orbroadband personal communications services; or a person holding a certificateissued pursuant to § 214 of the Communications Act of 1934, as amended,authorizing domestic telephone service and belonging to an affiliated groupincluding a person holding a certificate of convenience and necessity grantedby the State Corporation Commission authorizing telephone service; or atelegraph company or other person operating the apparatus necessary tocommunicate by telegraph. The term "affiliated group" shall have themeaning given in § 58.1-3700.1.
(1988, c. 899; 1995, c. 507; 1998, c. 897; 2000, c. 368; 2009, cc. 37, 152.)
