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Virginia Supreme Court reverses and remands case disallowing apportioned out-of-state deduction for BPOL purposes

The Virginia Supreme Court has reversed and remanded a decision by the Arlington County Circuit Court addressing the out-of-state deduction that may be taken for business, professional and occupational license (BPOL) tax purposes. The Arlington County Circuit Court had held that a multistate business service provider was not entitled to an apportioned deduction from gross receipts for receipts attributable to business conducted in other states, after the company’s gross receipts were sitused for BPOL tax purposes using payroll apportionment. The Virginia Supreme Court overturned this decision, ruling that the circuit court’s reasoning was not appropriate to reverse the Commissioner’s initial decision, but remanded the case back to the circuit court for further proceedings.

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