Bill Text: VA HB1224 | 2016 | Regular Session | Engrossed

Virginia House Bill 1224 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Bank franchise tax; sets a cap of $18 million on total annual tax liability per taxpayer.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2016-04-20 - Governor: Acts of Assembly Chapter text (CHAP0755) [HB1224 Detail]

Download: Virginia-2016-HB1224-Engrossed.html

16103959D
HOUSE BILL NO. 1224 House Amendments in [ ] -- February 3, 2016 A BILL to amend and reenact §58.1-1204 of the Code of Virginia, relating to bank franchise tax. ---------- Patron Prior to Engrossment--Delegate Ware ---------- Referred to Committee on Finance ----------

Be it enacted by the General Assembly of Virginia:

1. That §58.1-1204 of the Code of Virginia is amended and reenacted as follows:

§58.1-1204. Rate of tax.

The franchise tax imposed under this chapter shall be at the rate of $1 on each $100 of net capital as hereinafter defined. The total tax liability per taxpayer under this [ ~~section~~ chapter ] shall not exceed $18 million annually. If at least five banks pay such maximum amount of franchise tax for three consecutive calendar years, beginning in 2017, as determined by the Department of Taxation, then such maximum amount shall increase to $20 million beginning in the calendar year immediately following the third consecutive year. There shall be no deduction in respect to shares owned by exempt institutions.

2. That the Department of Taxation shall notify all bank and trust companies in the Commonwealth of the increase in the maximum annual tax liability no later than August 15 of the year immediately prior to the year of such increase.