SD4 - Work Group to Assess Potential Alternative Methods for the Filing and Allocation of Bank Franchise Tax Revenues Report (Chapter 51, 2023)
2023 House Bill 1896 and Senate Bill 1182 (2023 Acts of Assembly, Chapters 50 and 51) mandate electronic filing for the Bank Franchise Tax ("BFT"), provide an elective 60day filing extension for BFT returns and schedules, and require the Department of Taxation ("the Department") to create a secure online portal to receive returns and other required submissions for use by commissioners of the revenue and other assessing officers. All localities imposing a local Bank Franchise Tax are also required to provide electronic processes for banks to access real estate assessments. In addition, the 2023 legislation directed the Department to convene and facilitate a work group of stakeholders to examine potential alternative methods for the filing and allocation of Bank Franchise Tax revenues for consideration in the 2024 Session of the General Assembly.
As required by the 2023 legislation, the work group is comprised of representatives from the following organizations:
• Virginia Bankers Association,
• Virginia Association of Counties,
• Virginia Municipal League,
• Commissioners of Revenue Association of Virginia, and
• Other appropriate stakeholders.
The Department contacted the stakeholder groups identified in the legislation to notify them of the work group and to request that each stakeholder group appoint a representative to participate in the work group.
The meeting of the work group was held on July 31, 2023. Following the meeting, the Department solicited written comments to be provided by September 15, 2023. All comments received from the work group are attached. This is the final report of the work group.