Revenue Class: Intergovernmental Revenue
Account No.: 33593
Description: The state corporate excise tax collected from banks is shared with municipalities and counties
Local tax rates determine the payment allocation between the county and the city, so a city must levy a property tax to receive any funds. Another formula is prescribed for allocating such revenue if a bank has branches in more than one city and/or in more than one county. T.C.A. § 67-4-2017 (a)(1)(B).
Authorization: T.C.A. § 67-4-2017
Requirements or Restrictions: As noted in T.C.A.
Current Rate: The tax is 3 percent of net earnings (excluding interest from state bonds), less 7 percent of ad valorem taxes, divided between counties and municipalities based on property tax rates.
Frequency of Payment: Annually in the third quarter.
Late Pay Penalty: N/A
Collection: State forwards revenue to municipalities in third quarter of each year.
Use Restrictions: None.