Bank Franchise Tax
Due date: On or before the first day of June of each year
Tax rate: Tax on the net capital equaling eighty percent (80%) of the State rate of franchise tax.
Description: Localities in Virginia are authorized by the Code of Virginia to impose a tax upon each bank located within the boundaries of the city.
How does it work: On or after the first day of January of the year, all banks whose principal offices are located within the city, prepare and file a return with the Director of Finance. The return sets forth the tax on net capital gain if the principal office of a bank is located outside of the boundaries of the city and has branch offices located within the city, the bank will also have to file a copy of the real estate deduction schedule, apportionment and other items required by the Code of Virginia with the Director of Finance.
- Taxes should be filed with the Department of Taxation by March 1.
- The State Department of Taxation issues the notice of assessment in May.
- Payments are paid to the Director of Finance on or before June 1.
To view the City and State laws which govern the bank franchise tax, select any of the following links:
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