By: Ryan Beethoven-Wilson, CPA
The next phase of apportionment changes in Virginia is coming for manufacturers and retailers whose fiscal years begin after July 1, 2014. As a reminder, manufacturers now have the ability to elect a phase-in of single sales apportionment over three total taxable years. Retailers on the other hand, are now required to use the phase-in of single sales apportionment.
For example, if a calendar-year manufacturer has elected the phase-in of single sales factor apportionment, by filing a Virginia return with triple-weighted sales for 2013 and plan to file a return with quadruple-weighted sales for 2014, the manufacturer can apportion income using a single-sales factor on its 2015 Virginia return. Again, the determining factor is when the taxpayer’s tax year begins.
Retailers are required to apportion income using quadruple-weighted sales for tax years beginning after July 1, 2014, and will be able to apportion income using a single-sales factor in tax years beginning after July 1, 2015.
The instructions for Virginia Forms 500A and 502A are also a good place to turn for guidance. As always, please contact your Keiter representative with any questions or for further assistance.
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