Environment
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
StateVirginiaIntroduced
HB 609: Income tax, corporate; sourcing of sales, other than sales of tangible personal property.
Joe McNamara
HB 609 status: Introduced — Continued from last session (updated Jul 21, 2026).
Source
OpenStates
Confidence
Low
Analysis basis
OpenStates summary
01
What this bill does
Official summary alongside an AI-generated read on where it stands and why.
Overall Score
50OUT OF 100
Score:50/100 civic fit — mixed
Risk:Moderate Risk
Impact:Moderate Impact 55/100
Constitutionality90%
Bipartisan50%
Public opinion50%
Bill summary
What changes
The bill mandates a shift to 'market-based' sourcing for non-tangible property sales, meaning corporations will source income based on where the benefit of the service or intangible asset is received rather than where the costs of performance are incurred.
Who is affected
Corporations operating in Virginia that derive income from services, digital goods, or intangible property.
Requirements and enforcement
Affected corporations must update their tax calculation methodology to identify the 'market' state for non-tangible income.
Costs and funding
Potential increase in administrative and compliance costs during the transition period; potential for increased legal costs regarding state nexus determinations.
When it takes effect
Effective beginning with the 2027 taxable year.
Potential benefits
Provides clearer alignment with modern business models and other states' tax codes.
Risks and tradeoffs
Risk of revenue loss to the state and increased litigation regarding the definition of market location.
What is still unknown
The specific revenue impact on the Virginia state budget and the exact definition of 'market' application for complex digital services.
02
Impact analysis
✦ AI analysisModeled effects across six domains, estimated from bill text and comparable legislation.
Economy
Mixed / Neutral
50%
Benefits
- Aligns state tax policy with common market-based sourcing standards
- Simplifies compliance by basing tax liability on customer location
- Reduces incentives for firms to shift intangibles to low-tax jurisdictions
Risks
- Potential for unexpected tax liability increases for some corporations
- Administrative burden of transitioning to a new tax methodology
- Possible reduction in total state tax revenue from corporate sources
Society
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
Technology Industry
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
Civic Accountability
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
Public Health & Safety
No direct effect
Neutral — no direct effect identified.
Benefits
- No material direct effect identified.
Risks
- No material direct effect identified.
03
How trustworthy & consequential it is
Sourcing already shown above, this is what the analysis found worth flagging.
Source
OpenStates
Official bill text or data from OpenStates.
Confidence
Low
Information is limited or incomplete.
Analysis basis
OpenStates summary
Source used for this bill's analysis.
Source note
Market-based sourcing transitions often trigger litigation regarding the definition of 'market' location for service-based income.
Analysis scope
Source provided is a summary abstract; full bill text is unavailable.
04
Where it stands
Official record- IntroducedCurrent
- CommitteeUpcoming
- Chamber votesUpcoming
- Final agreementUpcoming
- GovernorUpcoming
- EnactedUpcoming
05
How it affects your district
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06
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