Bank Franchise Tax  

The City’s Bank Franchise Tax is managed by the Department of Finance’s Business Unit. The Bank Franchise Tax is assessed based on the percentage of the total deposits of the bank or offices located inside the City of Richmond to the total deposits of the bank as of the end of the preceding year.

Bank Franchise Tax Forms

• Penalty and Interest Waiver Online Application Form - Use this online form to request a waiver of penalty and interest for a number of different tax types

Bank Franchise Tax Rates, Dates, Penalties, and Interest 

• Rate: $.80 per $100.00 of net capital imposed upon each bank located within the boundaries of the City 
• Dates: 
  • March 1 Bank Franchise Tax net capital filings due 
  • June 1 Bank Franchise Tax due 
• Penalty: 5 percent when not paid annually by due date 
• Interest: Variable as governed by Commonwealth and Internal Revenue codes 

Bank Franchise Tax Governing Legislation* 

For detailed legislative information on the Bank Franchise Tax, please refer to the following: 

• Code of Richmond: Article VI. - Bank Franchise Tax 
• Code of Virginia: Chapter 12. Bank Franchise Tax 

* Please note, this list may not be exhaustive of all sections of governing code 

Bank Franchise Tax Frequently Asked Questions (FAQs) 

What if a bank has branches located outside the corporate limits of the City of Richmond? 
If a bank has offices in the City of Richmond and one or more political subdivisions in the Commonwealth of Virginia, the Bank Franchise Tax is assessed based on the percentage of the total deposits of the bank or offices located inside the City of Richmond to the total deposits of the bank as of the end of the preceding year.  

What if a bank has not been in business for the entire preceding calendar year?  
If a bank did not operate for the full twelve-month period preceding the January 1 tax date, the bank franchise tax is prorated as follows, based on when the bank began transacting business: 

• On or before March 31: The full bank franchise tax is assessed 
• April 1 – June 30: 75 percent of the bank franchise tax is assessed 
• July 1 – September 30: 50 percent of the bank franchise tax is assessed 
• October 1 – December 31: 25 percent of the bank franchise tax is assessed  

If you have a question, comment, or concern regarding City of Richmond Bank Franchise Tax, please contact RVA 311 at (804) 646-7000 or click here to submit a ticket.