Bank franchise tax; computation of net capital.
Purpose of legislation
Requires all banks to add back to taxable capital one-half of the bank's loan loss reserve net of applicable deferred tax. The measure is retroactive to tax years beginning on or after January 1,1995, unless the statute of limitations for a refund or assessment has expired. Any bank entitled to a reserve for loan losses under § 585 of the Internal Revenue Code for a tax year from 1995 through 1998 shall for such year add to its gross capital the amount by which the bank's net loan loss reserves exceed the reserve allowable under § 585. If a locality's obligation to make refunds to banks exceeds the amount of additional assessments collected by the locality for tax years 1995 through 1998, the amount of the excess refunds shall be refunded by the Commonwealth from additional taxes collected by the Commonwealth as the result of this act. Any bank franchise tax return required to be filed by March 1, 1999, shall be due instead by April 1, 1999. The measure has an emergency clause.
|Legislation mandating a change||Chap 84 (1999)|
|VAC chapters to be amended|
|Associated Regulatory Actions||