2006 Code of Virginia § 58.1-1204.1 - Proration for new banks

58.1-1204.1. Proration for new banks.

Notwithstanding 58.1-1204, any bank which did not operate for the entiretwelve-month period preceding the January 1 assessment date provided forunder 58.1-1207 shall be entitled to a prorated tax rate as follows:

1. Transacting business as of March 31 of the preceding year, no prorationshall be available and the tax rate shall be $1 on each $100 of net capital.

2. Transacting business as of June 30 of the preceding year but not beforeApril 1, the tax rate shall be 75 cents on each $100 of net capital.

3. Transacting business as of September 30 of the preceding year but notbefore July 1, the tax rate shall be 50 cents on each $100 of net capital.

4. Transacting business as of December 31 of the preceding year but notbefore October 1, the tax rate shall be 25 cents on each $100 of net capital.

For purposes of this section, "transacting business" shall mean acceptingdeposits from customers in the regular course of doing business. A bankshall be eligible for the prorated tax rate provided for hereunder withrespect to the first return it is required to file after accepting deposits;provided, that a bank shall not be eligible for the prorated tax rate if itwas organized or created as part of a reorganization within the meaning of 368 (a) of the Internal Revenue Code.

(1989, c. 64.)