CHAPTER 52

An Act to amend and reenact §§ 58-471, 58-473 and 58-484.1 of the Code
of Virginia, relating to the taxation of bank stock; and to amend
the Code of Virginia by adding sections numbered 58-465.1, 58-465.2,
58-470.1, 58-470.2 and 58-480.1, relating to shares of stock in banks

and bank holding companies held by exempt institutions. Say

[ ]

Approved February 20, 1964

Be it enacted by the General Assembly of Virginia:

1. That §§ 58-471, 58-473 and 58-484.1 of the Code of Virginia be
amended and reenacted and that the Code of Virginia be amended by
adding sections numbered 58-465.1, 58-465.2, 58-470.1, 58-470.2 and
58-480.1 as follows:

§ 58-465.1. For the purposes of this chapter the term “bank holding
company” shall mean any corporation organized under the laws of this
State which is a bank holding company under the provisions of the
Federal Bank Holding Company Act of 1956.

§ 58-465.2. For the purposes of this chapter the term “exempt insti-
tution” shall mean any corporation, association or other institution
(a) the property of which is exempt from taxation under Sec. 183 of
the Constitution of Virginia or under conforming legislation enacted
pursuant to it, or ( b) an insurance company which pays a State license
tax on gross premium income as provided by Chapter 11 of Title 58,
and, in either case, which owns the shares of any bank or bank holding
company doing business an this State and has informed such bank or
bank holding company of its status; but the giving of such information
shall not be necessary if such bank or bank holding company has knowl-
edge of the status of such institution; provided that shares of capital
stock of any bank holding company held by any such insurance company
tn excess of ten percent of the actually issued and outstanding capital
stock of any one such bank holding company shall not be deemed to be
shares of capital stock of a bank holding company owned by an exempt
wnstitution.

§ 58-470.1. Each bank holding company aforesaid, as of the first
day of January in each year, shall notify each bank, any of the capital
stock of which it owns, of the total number of shares of capital stock
of such bank holding company then outstanding, the number of such
shares owned by exempt institutions, and the name and address of and
the number of shares owned by each such exempt institution.

§ 58-470.2. Each bank, any of the capital stock of which is owned
by a bank holding company, shall include in the report required by
§ 58-470 the information supplied to such bank by such bank holding
company pursuant to § 58-470.1, and such report shall indicate what
proportion of the capital stock of such bank holding company is owned
by exempt institutions.

§ 58-471. From the total value of the shares of stock of any such
bank, which shall be ascertained by adding together its capital, surplus
and undivided profits, there shall be deducted the assessed value of *
real estate otherwise taxed in this State which 1s owned by such bank or,
if used or occupied by such bank, is held in the name of a bank holding
company or any wholly owned subsidiary of a bank holding company
which owns a majority of the capital stock of such bank, or if the title
to any real estate is held in the name of a holding corporation in which
such bank owns all or a majority of the common stock and such real
estate be otherwise taxed in this State, then there shall be deducted
from the value of the shares of stock of such bank, such proportion of
the assessed value of such real estate as the common stock it owns in
such holding corporation bears to the whole issue of common stock in
such corporation; and the actual value of each share of stock shall be
its proportion of the remainder.

§ 58-473. The commissioner of the revenue as soon as he receives
the report mentioned in § 58-470 shall assess upon each stockholder
upon the taxable value of the shares of stock owned by him a tax at
the rate of one dollar on each one hundred dollars of such value of such
stock. No such tax shall be assessed in respect to shares owned by exempt
mstitutions or in respect to that proportion of a bank’s shares owned by
a bank holding company as the number of shares issued by such bank
holding company and owned by exempt institutions bears to the total
number of outstanding shares of such bank holding company. Such tax
shall be in lieu of all other taxes whatsoever for State, county or local
purposes upon such share of stock. The commissioner of the revenue
shall certify three assessment lists, transmit one to the Department of
Taxation, one to the bank and retain one.

§ 58-480.1. Each bank, at the time it makes the payments re-
quired by § 58-480, shall pay to those of its stockholders which are
exempt institutions, or to bank holding companies with stockholders
which are exempt institutions, as agents for such stockholders, a sum
equal to the tax which would otherwise have been paid with respect
to the shares owned by such exempt institutions or with respect to a
proportion of the shares owned by such bank holding company; and
every bank holding company receiving any such payment from one or
more banks shall pay such sum to those of its stockholders which are
exempt institutions in proportion to the number of bank holding com-
pany shares owned by each.

§ 58-484.1. The foregoing provisions of this chapter are subject to
the qualifications contained in this section.

Any bank may for any tax year make a return, on a form pre-
scribed by the Department of Taxation, of the shares of stock issued by
it, giving the total number of such shares outstanding, the names and *
addresses of * all exempt institutions which own its shares or shares of
any bank holding company which owns its shares with the number of
such shares owned by each * exempt institution, the total number of
outstanding shares of any such bank holding company and the propor-
tion thereof owned by exempt institutions, and such other facts and
figures as may be required by the Department of Taxation for an ac-
curate computation of the actual value of such total number of ouwt-
standing shares and the actual value of each share, without accompany-
ing such return by a list of * stockholders, * except as herein provided;
and in such case it shall be deemed that an assessment was made against
each * stockholder * of the bank except an exempt institution and except
that in the case of a stockholder which is a bank holding company, such
assessment shall not apply to that proportion of the bank’s shares owned
by such bank holding company as the shares issued by such bank holding
company and owned by exempt institutions bears to the total number of
outstanding shares of such bank holding company.

But if any such bank fails to pay the total amount of the taxes
due by all its taxable stockholders within the time and in the manner
prescribed by this chapter, then such bank shall, not later than the fif-
teenth day of June of the tax year, file with the Department of Taxation
a list, on a form provided by the Department of Taxation, giving the
names and residences of all its stockholders and the number and actual
value of the shares of stock held by each stockholder; whereupon the
Department of Taxation shall proceed to extend the taxes and assess
the same against each taxable stockholder in the same manner as the
commissioner of the revenue would have been required to do by § 58-473
if this section had not been enacted, and the Department of Taxation
shall transmit a copy of the assessment list to the bank, which shall
have the effect prescribed by §§ 58-474 and 58-475.

f any assessment of taxes or the liability of any stockholder to
taxes under this chapter for any tax year shall become the subject of
a proceeding in any court to which the Commonwealth or any political
subdivision thereof may be a party, the bank concerned shall file the
list mentioned in the next preceding paragraph with the Department
of Taxation forthwith on demand made by the Department of Taxation,
if such list has not been theretofore filed, whether the bank has paid
such taxes or not, whereupon the Department of Taxation shall proceed
in the manner set out in the next preceding paragraph and with like
effect.