Tax Type
BPOL Tax
Description
Chartered Banks and Savings and Loan Associations;Local Retail License Taxes
Topic
Local Power to Tax
Date Issued
10-26-1973
I have received your recent letter inquiring whether my opinion to the Honorable J. Mercer White, Jr., County Attorney for Henrico County, dated August 21, 1972, precludes the imposition of local retail license taxes upon State banks and federal and State savings and loan associations. The opinion to which you refer concluded that local retail license taxes could not then be applied to national banks engaged in the sale of wigs, rings and other merchandise as part of a promotional activity.
The basis of the opinion was that an exception to the savings clause in 12 U. S. C. A. § 548 was not applicable. The savings clause, however, expired as of January 1, 1973, and since that date national banks have been subject to all taxes applicable to State banks within the jurisdiction where their principal office is located. 12 U. S. C. A. § 548. Federal savings and loan associations are taxable to the same extent as similar State associations. 12 U. S. C. A. § 1464(h). State savings and loan associations are taxable for State license tax purposes pursuant to § 58-373, which limits the amount of local license taxes. This limitation, however, is not applicable to taxes on the privilege of selling merchandise. Its application extends only to taxes on the privilege of engaging in a savings and loan business. See § 58-246.
Accordingly, I am of the opinion that local retail license taxes may currently be imposed upon all banks and savings and loan associations, regardless of whether they are chartered by the United States or by Virginia, provided they sell merchandise at retail.
Attorney General's Opinion