Tax Type
Corporation Income Tax
Description
Federal limitation on taxation of interstate commerce.
Topic
Computation of Income
Date Issued
10-15-1985
October 15, 1985
Dear ****
This will reply to * * * letter of August 14, 1985, concerning the applicability of Virginia corporation income tax to * * * (``Taxpayer').
* * * indicated that Taxpayer has no property, inventory, payroll or employees within Virginia and that the only business conducted within Virginia consists of sales to Virginia customers through brokers who are independent contractors and represent numerous other businesses. All sales are subject to home office approval and merchandise sold is delivered to Virginia purchasers in company-owned trucks.
Assuming that Taxpayer is not a Virginia domestic corporation and based on the facts presented, Public Law 86-272, 15 U.S.C.A. Secs. 381-384 would prohibit imposition of Virginia corporation income tax on Taxpayer, subject to the following provision. In delivering merchandise to Virginia purchasers in company-owned trucks, Taxpayer must do no more than provide the same delivery service provided by a common carrier.
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner