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BILL AS INTRODUCED 2007-2008

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H.487

Introduced by   Representative Clarkson of Woodstock

Referred to Committee on

Date:  

Subject:  Taxation; corporate income tax; throwback rule  

Statement of purpose:  This bill proposes to ignore the “throwback” rule for sales by a digital corporation.

AN ACT RELATING TO DIGITAL CORPORATION THROWBACK SALES

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  32 V.S.A. § 5833(a)(3) is amended to read:

(3)  The gross sales, or charges for services performed, within this state, expressed as a percentage of such sales or charges whether within or without this state.  Sales of tangible personal property are made in this state if the property is delivered or shipped to a purchaser, other than the United States government, who takes possession within this state, regardless of f.o.b. point or other conditions of sale, or the property is shipped from an office, store, warehouse, factory or other place of storage in this state and (a)(A) the purchaser is the United States government; or (b)(B) the corporation is not taxable in the state in which the purchaser takes possession.  Sales other than sales of tangible personal property are in this state if the corporation is not incorporated in Vermont only for the purpose of electronic corporate activities and has no activity in this state other than electronic corporate activities; and the income producing activity is performed in this state or the income producing activity is performed both in and outside this state and a greater proportion of the income producing activity is performed in this state than in any other state, based on costs of performance.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us