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Can you summarize 58.1 VACV Chapter 12?
Bank Franchise Tax
Short Summary
The provided legal document content pertains to the Bank Franchise Tax in the Commonwealth of Virginia. It outlines the requirements and procedures for filing tax returns, computing net capital, and making tax payments for banks. The document specifies that banks failing to comply with the provisions of this chapter may be subject to a penalty of five percent of the tax due. However, if the failure is due to providential or other good cause, the return and payment of tax may be accepted without the penalty. The document also mentions that if any state or local tax is held to be invalid in its application to national banks, such tax shall not be assessed against state banks. The Department of Taxation is authorized to audit bank returns for proper enforcement of the tax and correct any errors discovered. In case of adjustments, the bank and relevant political subdivisions imposing a tax against the bank are notified. The document further explains the computation of net capital for banks, including deductions for real estate, tangible personal property, government obligations, bank subsidiaries, marketable securities valuation, and goodwill. It also mentions the apportionment of tax for banks with offices in multiple political subdivisions. Banks paying tax to a city, town, or county are entitled to a credit against the state tax assessed for that year. The document also allows incorporated towns to impose a tax on the net capital of banks located within their jurisdiction. Additionally, the document specifies the filing requirements and deadlines for bank tax returns, along with the deductions from gross capital for bank franchise tax purposes. It also defines the term ‘Bank’ and ‘Bank holding company’ for the purpose of this chapter. The document concludes by stating that the Bank Franchise Tax Act is in lieu of all other taxes for state, county, or local purposes, except for specific taxes mentioned. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Banks, banking associations, savings banks, trust companies, and other banking entities operating in the Commonwealth of Virginia
What does it govern?
Bank Franchise Tax
What are exemptions?
Exempt institutions are not eligible for deductions in respect to shares owned
What are the Penalties?
No specific penalties are mentioned in this document
Jurisdiction
Virginia