                                 CODE OF VIRGINIA

PRORATION FOR NEW BANKS (§ 58.1-1204.1)

Notwithstanding § 58.1-1204, any bank which did not operate for the entire
twelve-month period preceding the January 1 assessment date provided for under
§ 58.1-1207 shall be entitled to a prorated tax rate as follows:

1. Transacting business as of March 31 of the preceding year, no proration shall
be available and the tax rate shall be $1 on each $100 of net capital.

2. Transacting business as of June 30 of the preceding year but not before April
1, the tax rate shall be 75 cent(s) on each $100 of net capital.

3. Transacting business as of September 30 of the preceding year but not before
July 1, the tax rate shall be 50 cent(s) on each $100 of net capital.

4. Transacting business as of December 31 of the preceding year but not before
October 1, the tax rate shall be 25 cent(s) on each $100 of net capital.
			For purposes of this section, &#8220;transacting business&#8221; shall mean
accepting deposits from customers in the regular course of doing business. A
bank shall be eligible for the prorated tax rate provided for hereunder with
respect to the first return it is required to file after accepting deposits;
provided, that a bank shall not be eligible for the prorated tax rate if it was
organized or created as part of a reorganization within the meaning of &#xA7;
368(a) of the Internal Revenue Code.

HISTORY: 1989, c. 64.