Bank Franchise Tax
General Information
Assessment and Tax Rate
File and Pay
Due Dates and Penalties
Bank Franchise Tax
Banks pay a franchise tax in lieu of business license and business personal property taxes. The bank franchise tax is an annual tax measured by the net capital of a bank. A bank has been defined as “any incorporated bank, banking association or trust company organized by or under the authority of the laws of the Commonwealth and any bank or banking association organized by or under the authority of the laws of the United States….” The tax is 80 percent of the state tax rate for each $100.00 of the net capital. Banks with a branch or principal office in Henrico County are required to file a Bank Franchise Tax Return. If the location is not a principal office, but is a branch of the principal office, the tax is apportioned as provided by the Code of Virginia.
Relevant code: Henrico Code §20-167 thru 20-170 / State of Va. State Code §58.1-1201
Assessment and 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.
File and Pay
Each bank whose principal office is located in Henrico County must file with the Finance director a copy of the bank franchise tax return (form 64) 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 schedules (Schedules C and H) by March 1 of each year.
Bank franchise tax returns are available from the State Taxation Department. You can retrieve the most current form online or call (804) 440-2542 for more information.
The County offers many payment options including the Internet, by telephone, by mail, in person or online banking. You can also enroll in an automated payment plan that allows monthly payments to be automatically drafted from your bank account. To find out more information visit our Payment Options page or contact the Treasury Division at 804-501-4678 or 804-501-4729 and press 1
Due Dates and Penalties
The tax is due by June 1 of each year. There is a 5% penalty for late payment.
For more information visit the Virginia Department of Taxation website or contact the Revenue Division at 804-501-7329.
