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Bank Franchise

  1. What is the bank franchise tax?
  2. How is the bank franchise tax assessed and what is the tax rate?
  3. How do I register to file the bank franchise tax with the Finance Department Revenue Division?
  4. When must the bank franchise tax be filed?
  5. When must the bank franchise tax be paid and is there a penalty for late payment?
  6. Where can I call with any questions regarding the bank franchise tax?

What is the bank franchise tax?
Virginia Code Section 58.1-1210 provides that banks pay a franchise tax in lieu of business license and business personal property taxes. The term “bank” means any incorporated bank, banking association or savings bank that is a member of the Federal Reserve System. For additional information, please visit the Finance Department website or call (804) 501-7329.

How is the bank franchise tax assessed and what is the tax rate?
The bank franchise tax is assessed based on a bank’s net capital. The tax rate is $1 for every $100 of net capital. For additional information, please visit the Finance Department website or call (804) 501-7329.

How do I register to file the bank franchise tax with the Finance Department Revenue Division?
Bank franchise tax returns are available from the state Taxation Department; call (804) 440-2542. For additional information, please visit the Finance Department website or call (804) 501-7329.

When must the bank franchise tax be filed?
As provided in Virginia Code Section 58.1-1207, each bank whose principal office is located in Henrico County must file with the Finance director a copy of the bank franchise tax return by March 1 of each year. Each bank that has a headquarters outside Henrico but maintains a branch or branches in the county must file with the Finance director a copy of the real estate deduction schedule by March 1 of each year. For additional information, please visit the Finance Department website or call (804) 501-7329.

When must the bank franchise tax be paid and is there a penalty for late payment?
The tax is due by June 1 of each year. There is a 5 percent penalty for late payment. For additional information, please visit the Finance Department website or call (804) 501-7329.

Where can I call with any questions regarding the bank franchise tax?
Please visit visit the Finance Department website or call (804) 501-7329.

 
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