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Vermont Statutes Annotated — Title 32 (Taxation and Finance)

32 V.S.A. § 5836

Franchise tax on financial institutions

Official textlegislature.vermont.gov

# (a)

A tax is imposed for each calendar month or part thereof upon the franchise or privilege of doing business in this State of every corporation that is a financial institution as defined in 8 V.S.A. § 11101(32) that has a business location in this State; provided, however, that a merchant bank organized under 8 V.S.A. § 12603 and an uninsured bank organized under 8 V.S.A. § 12604 shall not be considered to be financial institutions for purposes of the tax imposed by this section.

# (b)

The tax imposed by this section for each taxable month shall be equal to 0.000096 of the average monthly deposit for such taxable month held in Vermont by the corporation.
As used in this section, the word “deposit” shall have the same meaning as the word “deposit” as defined in 12 C.F.R. § 204.2(a)(1). The average monthly deposit for any taxable month shall be determined by the deposits held in Vermont by the corporation on the last business day of each of the 12 months directly preceding the taxable month for which the average monthly deposit is to be determined. The 12 deposits for the preceding 12 months shall be added together and divided by 12 to produce the average monthly deposit for the taxable month in question.
In the event a corporation has not been doing business for 12 consecutive months prior to any taxable month for which an average monthly deposit is to be determined, the average monthly deposit for such taxable months shall be based upon the number of months (less than 12) that the bank has been doing business prior to the taxable month in question.

# (c)

The tax imposed by this section shall be paid monthly to the Commissioner on or before the 25th day of each month for the tax due in the previous month.

# (d)

, (e) [Repealed.]

(f) To the extent they are not explicitly in conflict with the provisions of this section, the provisions of subchapters 6, 7, 8, and 9 of this chapter shall apply to the tax imposed by this section.

(g) A corporation that is subject to the tax imposed by this section shall not be subject to the tax imposed by section 5832 of this title.

(h) When a taxpayer, under this section, transfers all or a portion of its business assets to another corporation that is or will be subject to tax under this section, the transferee corporation shall include, and the transferor shall not include, in the computation of “average monthly deposit” for purposes of subsection (b) of this section, the transferred deposits that were held by the transferor corporation during the 12 months directly preceding the transfer.

(i) An independent trust company established pursuant to 8 V.S.A. chapter 77 is not a financial institution within the meaning of this section.

(j) The Vermont Higher Education Savings Plan shall not be subject to the tax imposed by this section. (

Last amended: Added 1967, No. 157, § 1; amended 1969, No. 144, § 11, eff. June 1, 1969; 1973, No. 270 (Adj. Sess.), § 2, eff. date, see note set out below; 1983, No. 144 (Adj. Sess.), § 5, eff. April 12, 1984; 1991, No. 32, § 29, eff. May 18, 1991; 1995, No. 29, § 29, eff. April 14, 1995; 1995, No. 169 (Adj. Sess.), § 16, eff. May 15, 1996; 1997, No. 60, § 75; 1997, No. 79 (Adj. Sess.), § 3; 1997, No. 98 (Adj. Sess.), § 8d, eff. April 16, 1998; 1999, No. 153 (Adj. Sess.), § 33, eff. Jan. 1, 2001; 2003, No. 15

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In this chapter (40 sections)
  1. 151-5827 · Repealed. 1989, No. 119, § 23(b), eff. June 22, 1989
  2. 151-5828 · Mobile home park sale; capital gain credit
  3. 151-5828a · Repealed. 1991, No. 32, § 7, eff. May 18, 1991
  4. 151-5828b · Earned income tax credit
  5. 151-5828c · Child and dependent care credit
  6. 151-5829 · Repealed. 1993, No. 210 (Adj. Sess.), § 40, eff. Jan. 1, 1994
  7. 151-5830 · Taxpayer identification numbers; credits
  8. 151-5830a · Interest tax
  9. 151-5830b · Tax credits; Entrepreneurs’ Seed Capital Fund
  10. 151-5830c · Tax credits; charitable investments in housing
  11. 151-5830d · Deferral of income taxation; combat zone duty
  12. 151-5830e · Retirement income; Social Security income
  13. 151-5830f · Vermont child tax credit
  14. 151-5830g · Vermont veteran tax credit
  15. 151-5831 · Name of tax
  16. 151-5832 · Tax on income of corporations
  17. 151-5832a · Digital business entity franchise tax
  18. 151-5833 · Allocation and apportionment of income
  19. 151-5834 · Computation of gains and losses
  20. 151-5835 · Construction of subchapter
  21. 151-5836 · Franchise tax on financial institutions
  22. 151-5837 · Repealed. 2003, No. 152 (Adj. Sess.), § 8
  23. 151-5838 · Digital business entity election
  24. 151-5841 · Requirement and rate of withholding
  25. 151-5842 · Return and payment of withheld taxes
  26. 151-5843 · Failure to account; maintenance of trust account
  27. 151-5844 · Liability; penalty; trust for the State
  28. 151-5845 · Repealed. 1991, No. 186 (Adj. Sess.), § 8(e), eff. May 7,…
  29. 151-5846 · Repealed. 1991, No. 186 (Adj. Sess.), § 8(f), eff. May 7,…
  30. 151-5847 · Withholding on sales or exchanges of real estate
  31. 151-5851 · Definitions
  32. 151-5852 · Payment of estimated income tax
  33. 151-5853 · 151-5853
  34. 151-5855 · Payments as tax liability
  35. 151-5856 · Declaration of estimated tax
  36. 151-5857 · Filing dates
  37. 151-5858 · Payment dates
  38. 151-5859 · Assessment date, penalties, interest
  39. 151-5861 · Returns by individuals, trusts, and estates
  40. 151-5861a · Returns by partnerships
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