VA HB956

Amends Virginia Code § 58.1-3732 to clarify how businesses can deduct out-of-state receipts from gross receipts subject to local license taxes

Requires out-of-state receipt deductions to be based on actual facts and circumstances of business operations, not on how much income is ultimately taxable in the other state

Defines qualifying out-of-state taxes as either a net income tax under federal law (15 U.S.C. § 383) or, if no such tax exists in that jurisdiction, a business activity tax based on gross or net income or receipts

Sponsored by Delegate Watts and introduced January 14, 2026, with committee referral pending