Citizen Portal
Sign In

Subcommittee rejects bill clarifying deductions for taxes measured on gross receipts

Finance Subcommittee No. 2 on Local Tax Infrastructure and Authority · January 28, 2026

Loading...

AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

HB 9 56 sought to expand the BPOL deduction to recognize gross‑receipts or franchise taxes paid to other states; business groups supported it as modernization, while commissioners of the revenue warned of fiscal losses and audit burdens. The motion to report failed 4–6.

Madam Uber Chair presented HB 9 56 as a modernization to align Virginia’s BPOL deduction with taxes that other states now measure on gross receipts or gross income, arguing the change would prevent double taxation and constitutional risk. Business groups including the Virginia Chamber, Northern Virginia Chamber and COST (Council on State Taxation) testified in support, calling the bill an update to match new state tax designs.

The Commissioners of the Revenue Association of Virginia and other county voices urged caution. Kim Klingler, representing the commissioners, said the change could carry significant fiscal impact for some localities and impose an administrative burden on local auditors who lack capacity in smaller jurisdictions. The committee considered a range of fiscal and fairness arguments; a motion to report HB 9 56 failed on a 4–6 vote, so the bill did not advance from the subcommittee.