                                 CODE OF VIRGINIA

DEBT BUYERS; APPORTIONMENT (§ 58.1-422.3)

A. As used in this section, &#8220;debt buyer&#8221; means an entity and its
affiliated entities that purchase nonperforming loans from unaffiliated
commercial entities that (i) are in default for at least 120 days or (ii) are in
bankruptcy proceedings. &#8220;Debt buyer&#8221; does not include an entity that
provides debt collection services for unaffiliated entities.

B. For taxable years beginning on and after January 1, 2019, the Virginia
taxable income of a debt buyer, excluding income allocable under &#xA7;
58.1-407, shall be apportioned within and without the Commonwealth by
multiplying such income by the sales factor. For debt buyers, only money
recovered on debt that a debt buyer collected from a person who is a resident of
the Commonwealth or an entity that has its commercial domicile in the
Commonwealth shall be apportioned to the Commonwealth for income tax purposes.

HISTORY: 2018, c. 807.