                                 CODE OF VIRGINIA

MINIMUM TAX ON TELECOMMUNICATIONS COMPANIES (§ 58.1-400.1)

A. A telecommunications company that is incorporated shall be subject to a
minimum tax, instead of the corporate income tax imposed by &#xA7; 58.1-400, at
the applicable rate on its gross receipts for the calendar year which ends
during the taxable year if the tax imposed by &#xA7; 58.1-400 is less than the
minimum tax imposed by this section. A telecommunications company that is
organized as a limited liability company, partnership, corporation that has made
an election under subchapter S of the Internal Revenue Code, or other entity
treated as a pass-through entity shall be subject to the minimum tax in 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 twelve months,
the minimum tax shall be based on the gross receipts for the calendar year which
ends during the taxable period or, if none, the most recent calendar year which
ended before the taxable period. The minimum tax shall be prorated by the number
of months in the taxable period.

C. The State Corporation Commission shall certify to the Department for each tax
year as defined in &#xA7; 58.1-2600 the name, address, and gross receipts for
each telecommunications company. The Commission shall mail or otherwise deliver
a copy of the certification to each affected telecommunications company.

D. The following words and terms, when used in this section, shall have the
following meanings:
			&#8220;Gross receipts&#8221; means all revenue from business done within the
Commonwealth, including the proportionate part of interstate revenue
attributable to the Commonwealth if such inclusion will result in annual gross
receipts exceeding $5 million, with the following deductions:

   1. Revenue billed on behalf of another such telephone company or person to the
   extent such revenues are later paid over to or settled with that company or
   person; and

   2. Revenues received from a telecommunications company, or from a telephone
   utility company providing interstate communications service, for providing to
   the company any of the following: (i) unbundled network facilities, (ii)
   completion, origination or interconnection of telephone calls with the
   taxpayer&#8217;s network, (iii) transport of telephone calls over
   taxpayer&#8217;s network, or (iv) taxpayer&#8217;s telephone services for
   resale.
   				&#8220;Telecommunications company&#8221; means a telephone company or
   other person holding a certificate of convenience and necessity granted by the
   State Corporation Commission authorizing telephone service; or a person
   authorized by the Federal Communications Commission to provide commercial
   mobile service as defined in &#xA7; 332(d)(1) of the Communications Act of
   1934, as amended, where such service includes cellular mobile radio
   communications services or broadband personal communications services; or a
   person holding a certificate issued pursuant to &#xA7; 214 of the
   Communications Act of 1934, as amended, authorizing domestic telephone service
   and belonging to an affiliated group including a person holding a certificate
   of convenience and necessity granted by the State Corporation Commission
   authorizing telephone service; or a telegraph company or other person
   operating the apparatus necessary to communicate by telegraph. The term
   &#8220;affiliated group&#8221; shall have the meaning given in &#xA7;
   58.1-3700.1.

HISTORY: 1988, c. 899; 1995, c. 507; 1998, c. 897; 2000, c. 368; 2009, cc. 37,
152.