2013 Vermont Statutes
Title 32 Taxation and Finance
Chapter 151 INCOME TAXES
§ 5836 Franchise tax on financial institutions

5836. Franchise tax on financial institutions

(a) A tax is imposed for each calendar month or part thereof upon the franchise or privilege of doing business in this State of every corporation which is a financial institution as defined in 8 V.S.A. 11101(32) that has a business location in this State; provided, however, that a merchant bank organized under 8 V.S.A. 12603 and an uninsured bank organized under 8 V.S.A. 12604 shall not be considered to be financial institutions for purposes of the tax imposed by this section.

(b) The tax imposed by this section for each taxable month shall be equal to 0.000096 of the average monthly deposit for such taxable month held in Vermont by the corporation. As used in this section, the word "deposit" shall have the same meaning as the word "deposit" as defined in Title 12, Part 204, section 204.2(a)(1) of the Code of Federal Regulations. The average monthly deposit for any taxable month shall be determined by the deposits held in Vermont by the corporation on the last business day of each of the 12 months directly preceding the taxable month for which the average monthly deposit is to be determined. The 12 deposits for the preceding 12 months shall be added together and divided by 12 to produce the average monthly deposit for the taxable month in question. In the event a corporation has not been doing business for 12 consecutive months prior to any taxable month for which an average monthly deposit is to be determined, the average monthly deposit for such taxable months shall be based upon the number of months (less than 12) that the bank has been doing business prior to the taxable month in question.

(c) The tax imposed by this section shall be paid quarterly to the Commissioner not later than the 25th day of the month following the last day of each quarter of the corporation's taxable year under the federal Internal Revenue Code, for the three months of that quarter.

(d), (e) [Repealed.]

(f) To the extent they are not explicitly in conflict with the provisions of this section, the provisions of subchapters 6, 7, 8, and 9 of this chapter shall apply to the tax imposed by this section.

(g) A corporation which is subject to the tax imposed by this section shall not be subject to the tax imposed by section 5832 of this title.

(h) When a taxpayer, under this section, transfers all or a portion of its business assets to another corporation which is or will be subject to tax under this section, the transferee corporation shall include, and the transferor shall not include, in the computation of "average monthly deposit" for purposes of subsection (b) of this section, the transferred deposits which were held by the transferor corporation during the 12 months directly preceding the transfer.

(i) An independent trust company established pursuant to 8 V.S.A. chapter 77 is not a financial institution within the meaning of this section.

(j) The Vermont Higher Education Savings Plan shall not be subject to the tax imposed by this section. (Added 1967, No. 157, 1; amended 1969, No. 144, 11, eff. June 1, 1969; 1973, No. 270 (Adj. Sess.), 2, eff. date, see note set out below; 1983, No. 144 (Adj. Sess.), 5, eff. April 12, 1984; 1991, No. 32, 29, eff. May 18, 1991; 1995, No. 29, 29, eff. April 14, 1995; 1995, No. 169 (Adj. Sess.), 16, eff. May 15, 1996; 1997, No. 60, 75; 1997, No. 79 (Adj. Sess.), 3; 1997, No. 98 (Adj. Sess.), 8d, eff. April 16, 1998; 1999, No. 153 (Adj. Sess.), 33, eff. Jan. 1, 2001; 2003, No. 152 (Adj. Sess.), 6, eff. June 7, 2004.)