Bank Franchise Tax

General Information & Terms


Every bank or trust company with offices located in the City pays an annual city franchise tax, based on net capital, for the privilege of conducting business in the City.

Definitions §58.1-1201

Computation of the Tax


Main offices: Virginia taxes a bank on its net capital at a rate of $1 for each $100 of a bank's net capital. The City's tax is 80% of Virginia's bank franchise tax or $0.80 per $100 of net capital.

Branch offices: The City's tax for branch banks is also 80% of Virginia's bank franchise tax, but is calculated on a ratio of local deposits to the banks total net capital.

Computation of net capital §58.1-1205

Filing & Payment Procedures


All banks with main offices in the City must prepare and file bank franchise tax returns with the Commissioner of the Revenue by March 1 of each year. The commissioner of the revenue sends certified copies of the returns to the Virginia Department of Taxation.

Payment of Tax


All banks with offices in the City of Hampton must submit their payment by June 1 of each year. Make checks payable to the Treasurer, City of Hampton. Mail returns and payments to:
Commissioner or the Revenue
Attn: Chief Deputy
P.O. Box 636
Hampton, VA 23669

If you have any questions regarding this information, please call the Office of the Commissioner of the Revenue at (757) 727-6700 or email.