The Code of Virginia § 58.1-1210, provides that banks pay a franchise tax in lieu of business license and business tangible property taxes. The term “bank” means any incorporated bank, banking association, or savings bank that is a member of the Federal Reserve System.
- Banks whose principal office is located within Fairfax County must file a copy of the bank franchise tax return (Virginia Form 64, Schedules H and C) to the Department of Tax Administration by March 1 of each year.
- Banks that are headquartered outside Fairfax County but maintain branches in the county, must file a copy of the bank franchise tax return with a copy of the real estate deduction schedule under Code of Virginia § 58.1-1211 with the Department of Tax Administration by March 1 of each year.
- The bank franchise license tax is assessed on the bank’s net capital based upon the ratio of local deposits to total statewide deposits of the bank. The annual tax is at the rate of $0.80 for each $100 of the net capital of the bank in accordance with the Code of Virginia § 58.1-1205.
- Bank franchise tax is due to Department of Tax Administration by June 1 of each year.
- Bank franchise tax returns are available from the Virginia Department of Taxation. Please call 804-404-4215 for more information.
Fairfax County Bank Franchise Tax Ordinance, Chapter 4, Article 8