Division 6 – Bank Franchise Tax

[Adopted 6-13-1980; amended in its entirety 7-12-1993 (Ch. 147, Art. VI, of the 1993 Code)]

§ 3.7-15 Definitions.

For the purposes of this article, the following words shall have the meanings ascribed to them by this section:

BANK

As defined in § 58.1-1201, Code of Virginia.

NET CAPITAL

A bank’s net capital computed pursuant to § 58.1-1202, Code of Virginia.

§ 3.7-16 Tax imposed; apportionment for branches.

A. Pursuant to the provisions of Chapter 12 of Title 58.1, Code of Virginia, there is hereby imposed upon each bank located outside any incorporated town but otherwise within the boundaries of this County a tax on net capital equaling 80% of the state rate of franchise tax set forth in § 58.1-1210, Code of Virginia.

B. In the event that any bank is located within the boundaries of this County but outside any incorporated town located herein and is not the principal office but is a branch extension or affiliate of the principal office, the tax upon such branch shall be apportioned as provided by § 58.1-1211, Code of Virginia.

§ 3.7-17 Filing of return; disposition; payment.

A. On or after the first day of January of each year, but not later than March 1 of any such year, all banks whose principal offices are located within this County but outside any incorporated town herein shall prepare and file with the Commissioner of the Revenue a return as provided by § 58.1-1207, Code of Virginia, in duplicate, which shall set forth the tax on net capital computed pursuant to Chapter 12 of Title 58.1, Code of Virginia, as amended. The Commissioner of the Revenue shall certify a copy of such filing of the bank’s return and schedules and shall forthwith transmit such certified copy to the State Department of Taxation. [Amended 4-7-2014]

B. In the event that the principal office of a bank is located outside the boundaries of this County or within any town located herein and such bank has branch offices located within this County, in addition to the filing requirements set forth in Subsection A hereof, any bank conducting such branch business shall file with the Commissioner of the Revenue of this County a copy of the real estate deduction schedule, apportionment and other items which are required by §§ 58.1-1211, 58.1-1212, and 58.1-1213, Code of Virginia, as amended.

C. Each bank, on or before the first day of June of each year, shall pay into the Treasurer’s office (or other appropriate official) of this County all taxes imposed pursuant to this article.

§ 3.7-18 Violations and penalties.

[Amended 4-7-2014]

Any bank which shall fail or neglect to comply with any provision of this article shall be fined 5% of the tax due, which fine shall be recovered upon motion, after five days’ notice in the Circuit Court of this County. The motion shall be in the name of the commonwealth and shall be presented by the attorney for the commonwealth of this locality.