Virginia Administrative Code Title 23 - TAXATION
The Virginia Administrative Code, Title 23 - TAXATION, comprises the regulations issued by the Virginia Department of Taxation. These rules provide detailed guidance on the interpretation and enforcement of Virginia's tax laws (found in the Code of Virginia, primarily Title 58.1). They are crucial for taxpayers, businesses, and tax professionals to understand their obligations and rights.
The Department of Taxation is vested with general supervision over state taxation and directly administers a wide array of taxes. Title 23 reflects this broad authority, with regulations typically organized into several key divisions and chapters, often mirroring the structure of the Virginia Tax Code.
Here's an overview of the major areas covered within Title 23 - TAXATION:
I. General Administration and Procedures (Often within Agency 10 - Department of Taxation, and its initial chapters):
Administration: General rules for the Department of Taxation's operations, including taxpayer services, forms, and publications.
Definitions: Clarification of terms used throughout the tax regulations.
Assessment and Collection of Taxes: Procedures for tax assessments, including notices, interest, penalties for underpayment or late filing, and collection actions (liens, levies).
Appeals and Taxpayer Remedies: Procedures for taxpayers to dispute assessments, file refund claims, and appeal Department decisions. This includes formal and informal conferences.
Setoff Debt Collection Act: Regulations for the process of collecting debts owed to state agencies by offsetting state tax refunds.
II. Income Taxes (Chapters 100-140, and potentially others):
Individual Income Tax (Chapter 110): Detailed rules on Virginia's individual income tax, including:
Who must file and filing requirements (residents, nonresidents, part-year residents).
Virginia adjusted gross income (VAGI) computations, including additions and subtractions from federal adjusted gross income (e.g., age deduction, military benefits, social security).
Credits (e.g., credit for tax paid to another state, low-income tax credit).
Filing status (single, married filing jointly, married filing separately).
Estimates of income tax by individuals.
Fiduciary Income Tax (Chapter 115): Regulations for income tax on estates and trusts.
Corporation Income Tax (Chapter 120): Rules governing Virginia's corporate income tax, including:
Taxable income computation.
Apportionment and allocation rules for multi-state corporations (e.g., sales factor, property factor, payroll factor, and special apportionment rules for certain industries like retail or internet root infrastructure providers).
Consolidated returns for affiliated groups.
Credits and deductions specific to corporations.
Income Tax Withholding (Chapter 140): Regulations for employers regarding withholding Virginia income tax from employee wages, including:
Withholding tables and methods.
Deposit and reporting requirements.
Employer responsibilities.
Taxation of Partnerships (Chapter 130): Note: This chapter may be largely repealed or renumbered as Virginia has recently introduced a pass-through entity tax election. Regulations previously covered how partnerships filed and how partners were taxed. New rules likely address the pass-through entity tax election and its implications.
III. Sales and Use Tax (Chapters 200-240, and potentially others):
Retail Sales and Use Tax (Chapter 200-210): Comprehensive rules on Virginia's sales and use tax, including:
What constitutes a taxable sale or use.
Exemptions (e.g., food for home consumption at a reduced rate, prescription drugs, certain agricultural items, industrial machinery, non-profit exemptions).
Nexus requirements for out-of-state sellers (including economic nexus thresholds for sales/transactions).
Resale certificates and exemption certificates.
Tax on specific services.
Treatment of specific industries (e.g., contractors, hotels, restaurant meals, motor vehicles).
Local sales and use taxes.
Virginia Tire Tax (Chapter 211): Specific regulations for the tire recycling fee.
Communications Sales and Use Tax (Chapter 212): Rules for the tax on telecommunication services.
Watercraft Sales and Use Tax (Chapter 230): Regulations for the tax on the sale or use of watercraft.
Aircraft Sales and Use Tax (Chapter 240): Regulations for the tax on the sale or use of aircraft.
IV. Other Taxes (Various chapters):
Estate Tax (Chapter 300): Regulations for the Virginia estate tax.
Intangible Personal Property Tax (Chapter 310): Rules for the tax on certain intangible assets.
Bank Franchise Tax (Chapter 320): Regulations specific to the taxation of banks.
Forest Products Tax (Chapter 330): Rules for the tax on harvested forest products.
Litter Tax (Chapter 340): Regulations for the tax on manufacturers, wholesalers, distributors, or retailers of certain products that contribute to litter.
Excise Taxes (Various chapters): Regulations for excise taxes on specific commodities, such as cigarettes (Chapter 350), tobacco products (Chapter 351), soft drinks, and agricultural excise taxes (e.g., on apples, cattle, corn, peanuts, soybeans, small grains, eggs, etc. - found in the 50-60 series chapters).
Recordation Taxes (Chapter 410): Rules related to taxes collected by local clerks of court on recorded documents.
Wills and Administrations Taxes: Rules for taxes collected on wills and probate.
Writ Taxes: Regulations for taxes on legal actions.
Local Business, Professional and Occupational License (BPOL) Taxes: While locally administered, the Department of Taxation often issues guidelines and advisory opinions related to these taxes.
Importance:
Title 23 is vital for understanding tax obligations in Virginia. It provides the detailed implementation of the state's tax statutes, offering interpretations, examples, and procedural guidelines that are not always explicit in the Code of Virginia itself.
To find the most current and authoritative version of these rules, you should always refer to the official sources:
Virginia Law Library (Virginia General Assembly's Legislative Information System - LIS): This is the official online source for the Virginia Administrative Code.
Virginia Department of Taxation Website: The Department's website (tax.virginia.gov) provides a comprehensive "Laws, Rules, & Decisions" section, including links to the VAC, Tax Commissioner Rulings, Tax Bulletins, and other policy documents.
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