Last year, in Virginia Cellular LLC v. Virginia Department of Taxation, the Virginia Supreme Court held that a regulation extending Virginia's minimum tax on telecommunications companies to partnerships and other pass-through entities was invalid.1 Under emergency retroactive legislation enacted in late February, the Virginia General Assembly has effectively reversed the court's decision in Virginia Cellular, retroactive to 2004.2 The General Assembly's attempt to retroactively reverse Virginia Cellular and, thus, impose the minimum tax on partnerships and other pass-through entities for prior periods, may violate the Due Process clause of the U.S. Constitution.
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