19740108 r-74-1PETITIONARY RESOLVE No. R-74-1
WHEREAS, taxes levied upon tangible personal property
are a substantial, important and necessary source of local revenue
in the City of Fairfax, Virginia, and other jurisdictions in
Virginia; and
WHEREAS, equity and uniformity are essential keystones
in sound tax structure; and
WHEREAS, discriminatory legislation with respect to
taxation should be minimized whenever and wherever possible,
willful failure to do so being intolerable; and
WHEREAS, the current Code of Virginia, as amended to
date, imposes a tax upon the stockholders of banks organized by
or under the laws of Virginia and based upon the net value
of their shares of stock; and
WHEREAS, the Attorney General for the Commonwealth has
opined that "---the provisions of Title 58, Sec. 465, et seq.,
preclude local tangible personal property taxes on property owned
by banks."; and
WHEREAS, localities in Virginia are presently permitted
to levy taxes upon the real property owned by banks, but are con-
strained by State law from levying taxes upon the tangible personal
property owned by banks, the same being discriminatory in favor of
one class of property as opposed to another and in favor of one
type of business as opposed to others; and
WHEREAS, the previous legislative impediment to the local
taxation of tangible personal property owned by national banks
occasioned by the savings clause contained in 12 U.S.C.A. Sec. 548
of the National Bank Act has been removed because of its expiration
on January 1, 1973, thereby obviating the necessity of protecting
state banks from unfair competition with national banks; and
WHEREAS, in most localities in Virginia the tax upon bank
shares derived as a source of local revenue is considerably smaller
than the tax derived from a like assessed value of tangible personal
property; and
R-74-1
WHEREAS, the tangible personal property owned by banks
in Virginia is a substantial and rapidly growing part of their total
assets, a particular part that enjoys a tax'haven not available to
other businesses, thereby lessening local revenue; and
WHEREAS, the tangible personal property owned by banks
is deserving of and should enjoy the same tax status and receive
the same tax treatment as the real property owned by banks;
NOW, THEREFORE BE IT RESOLVED, that the City Council of
the City of Fairfax, Virginia, hereby petitions and respectfully
requests that the 1974 General Assembly of Virginia amend and
re-enact such section(s) of Chapter 10 of Title 58 of the Code
of Virginia, as amended to date, in such manner as to enable
the localities of Virginia to tax the tangible personal property
of banks in like manner as the tangible personal property of
other businesses is taxed, and to allow the said banks the same
treatment with respect to their tangible personal property in
arriving at their tax upon their shares of stock as is presently
allowed them with respect to their real property. Further, the
City Council hereby directs that a copy of this petition be
transmitted forthwith by its City Clerk to every member of the
1974 General Assembly of Virginia.
Introduced:
Passed:
January 8, 1974
January 8, 1974
Attest:
Cfty~ Clerk