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Senate File 91

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 422.60, subsection 1, Code 1995, is
  1  2 amended to read as follows:
  1  3    1.  A franchise tax according to and measured by net income
  1  4 average monthly deposits is imposed on financial institutions
  1  5 for the privilege of doing business in this state as financial
  1  6 institutions.
  1  7    Sec. 2.  Section 422.60, subsections 2 and 3, Code 1995,
  1  8 are amended by striking the subsections.
  1  9    Sec. 3.  Section 422.62, Code 1995, is amended to read as
  1 10 follows:
  1 11    422.62  DUE AND DELINQUENT DATES.
  1 12    The franchise tax is due and payable on the first by the
  1 13 twenty-fifth day following the end of each quarter of the
  1 14 taxable year of each financial institution, and is delinquent
  1 15 after the last day of the fourth month following the due date
  1 16 or forty-five days after the due date of the federal tax
  1 17 return, excluding extensions of time to file, whichever is the
  1 18 later for the three months of that quarter.  Every financial
  1 19 institution shall file a return as prescribed by the director
  1 20 on or before the delinquency due date.
  1 21    Sec. 4.  Section 422.63, Code 1995, is amended by striking
  1 22 the section and inserting in lieu thereof the following:
  1 23    422.63  AMOUNT OF TAX.
  1 24    1.  The franchise tax is imposed for each month in the
  1 25 taxpayer's taxable year in an amount equal to two hundred
  1 26 forty-five ten thousandths of one percent of the average
  1 27 monthly deposits for the taxable month held by the taxpayer.
  1 28    2.  For purposes of this section:
  1 29    a.  "Deposit" means "deposit" as defined in 12 C.F.R. }
  1 30 204.2(a)(1).
  1 31    b.  "Average monthly deposits" means for a taxable month
  1 32 the monthly average of the deposits held by the taxpayer on
  1 33 the last business day of each of the twelve months directly
  1 34 preceding the taxable month.  If the taxpayer has not been
  1 35 doing business for twelve consecutive months preceding the
  2  1 taxable month, "average monthly deposit" means the average of
  2  2 the deposits held on the last business day for each of the
  2  3 consecutive months the taxpayer has been doing business.
  2  4    3.  The amount of tax imposed under subsection 1 for all
  2  5 months in the taxpayer's taxable year shall not exceed the net
  2  6 income of the taxpayer.  However, for a taxpayer with average
  2  7 monthly deposits for any month that exceed fifty million
  2  8 dollars, the tax shall not be less than five thousand dollars
  2  9 for the taxable year, or for all other taxpayers the tax shall
  2 10 not be less than two thousand five hundred dollars.
  2 11    Sec. 5.  This Act takes effect January 1, 1996, for tax
  2 12 years beginning on or after that date.  
  2 13                           EXPLANATION
  2 14    The bill changes the manner of computation of the franchise
  2 15 tax on financial institutions by imposing a tax for each month
  2 16 of a percentage equal to .000245 of the average monthly
  2 17 deposits held by the institution on the last business day of
  2 18 the month.  The average monthly deposits is the monthly
  2 19 average of the deposits held on the last business day for the
  2 20 12 months preceding the taxable month.  "Deposits" means the
  2 21 "deposits" as defined in 12 C.F.R. } 204.2(a)(1).  The bill
  2 22 sets a minimum amount of tax that an institution has to pay
  2 23 for its tax year.  The minimum is $5,000 if at any time the
  2 24 institution has average monthly deposits for any month of the
  2 25 tax year in excess of $50 million or $2,500 for any other
  2 26 institution.  If the tax exceeds the minimum amount, the tax
  2 27 is limited to not more than the financial institution's
  2 28 federal taxable income adjusted as presently provided under
  2 29 the franchise tax.
  2 30    The bill takes effect January 1, 1996, for tax years
  2 31 beginning on or after that date.  
  2 32 LSB 1770XS 76
  2 33 mg/jj/8.1
     
Text: SF00090                           Text: SF00092
Text: SF00000 - SF00099                 Text: SF Index
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