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12 USC CHAPTER 4 - TAXATION 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 4 - TAXATION

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CHAPTER 4 - TAXATION

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SUBCHAPTER I - FEDERAL RESERVE BANKS

Sec.

531. Exemption from taxation.

SUBCHAPTER II - NATIONAL BANK CIRCULATION

541. Tax on circulating notes generally.

542 to 547. Omitted or Repealed.

SUBCHAPTER III - NATIONAL BANK SHARES

548. State taxation.

SUBCHAPTER IV - STATE BANK CIRCULATION

561 to 570. Omitted.

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12 USC SUBCHAPTER I - FEDERAL RESERVE BANKS 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 4 - TAXATION

SUBCHAPTER I - FEDERAL RESERVE BANKS

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SUBCHAPTER I - FEDERAL RESERVE BANKS

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12 USC Sec. 531 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 4 - TAXATION

SUBCHAPTER I - FEDERAL RESERVE BANKS

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Sec. 531. Exemption from taxation

-STATUTE-

Federal reserve banks, including the capital stock and surplus

therein and the income derived therefrom, shall be exempt from

Federal, State, and local taxation, except taxes upon real estate.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 7(c), 38 Stat. 258; Mar. 3, 1919, ch.

101, Sec. 1, 40 Stat. 1314; Pub. L. 103-66, title III, Sec.

3002(c)(2), Aug. 10, 1993, 107 Stat. 338.)

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CODIFICATION

Section is comprised of subsec. (c) (formerly third undesignated

par.) of section 7 of act Dec. 23, 1913. Subsec. (a) of section 7

and subsec. (b) (enacted by Pub. L. 106-113, div. B, Sec.

1000(a)(5) (title III, Sec. 302(2)), Nov. 29, 1999, 113 Stat. 1536,

1501A-304) of section 7 are classified to section 289 of this

title. Another subsec. (b) of section 7 is classified to section

290 of this title.

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AMENDMENTS

1993 - Pub. L. 103-66 inserted section catchline.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 26 section 140.

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12 USC SUBCHAPTER II - NATIONAL BANK CIRCULATION 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 4 - TAXATION

SUBCHAPTER II - NATIONAL BANK CIRCULATION

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SUBCHAPTER II - NATIONAL BANK CIRCULATION

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12 USC Sec. 541 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 4 - TAXATION

SUBCHAPTER II - NATIONAL BANK CIRCULATION

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Sec. 541. Tax on circulating notes generally

-STATUTE-

In lieu of all existing taxes, every association shall pay to the

Treasurer of the United States, in the months of January and July,

a duty of one-half of 1 per centum each half year upon the average

amount of its notes in circulation.

-SOURCE-

(R.S. Sec. 5214; Mar. 3, 1883, ch. 121, Sec. 1, 22 Stat. 488.)

-COD-

CODIFICATION

R.S. Sec. 5214 derived from act June 3, 1864, ch. 106, Sec. 41,

13 Stat. 111, which was part of the National Bank Act. See section

38 of this title.

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12 USC Sec. 542 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 4 - TAXATION

SUBCHAPTER II - NATIONAL BANK CIRCULATION

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Sec. 542. Omitted

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CODIFICATION

Section, act Mar. 14, 1900, ch. 41, Sec. 13, 31 Stat. 49, related

to tax on circulating notes secured by 2 per centum bonds.

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12 USC Sec. 543 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 4 - TAXATION

SUBCHAPTER II - NATIONAL BANK CIRCULATION

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Sec. 543. Repealed. Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96

Stat. 1068

-MISC1-

Section, act Dec. 21, 1905, ch. 3, Sec. 1, 34 Stat. 5, related to

tax on circulating notes secured by Panama Canal 2 per centum bonds

and rights and privileges of such bonds.

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12 USC Sec. 544 to 547 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 4 - TAXATION

SUBCHAPTER II - NATIONAL BANK CIRCULATION

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Sec. 544 to 547. Omitted

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CODIFICATION

Section 544, R.S. Sec. 5215; act Mar. 3, 1883, ch. 121, Sec. 1,

22 Stat. 488, related to half-yearly return of circulation.

Section 545, R.S. Sec. 5216; act Mar. 3, 1883, ch. 121, Sec. 1,

22 Stat. 488, related to penalty for failure to make return.

Section 546, R.S. Sec. 5217, related to enforcing tax on

circulation.

Section 547, R.S. Sec. 5218; act June 10, 1921, ch. 18, Sec. 304,

42 Stat. 24, related to refunding excess tax.

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REPEALS

Effective July 1, 1935, the permanent appropriation provided for

in former section 547 of this title was repealed by act June 26,

1934, ch. 756, Sec. 2, 48 Stat. 1226, such act authorizing in lieu

thereof, an annual appropriation from the general fund of the

Treasury.

REDEMPTION OF BONDS; TERMINATION OF CIRCULATING NOTES

In a communication from the Treasury Department dated February

17, 1941, it was stated ''The Secretary of the Treasury called for

redemption the only outstanding issues of United States bonds

bearing the circulation privilege as follows:

''2% Consols. of 1930, as of July 1, 1935,

''2% Panama Canal bonds of 1916-36, and

''2% Panama Canal bonds of 1918-38, as of August 1, 1935.

''The retirement of these issues automatically put an end to

National Bank note circulation and the collection of the tax

thereon.''

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12 USC SUBCHAPTER III - NATIONAL BANK SHARES 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 4 - TAXATION

SUBCHAPTER III - NATIONAL BANK SHARES

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SUBCHAPTER III - NATIONAL BANK SHARES

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12 USC Sec. 548 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 4 - TAXATION

SUBCHAPTER III - NATIONAL BANK SHARES

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Sec. 548. State taxation

-STATUTE-

For the purposes of any tax law enacted under authority of the

United States or any State, a national bank shall be treated as a

bank organized and existing under the laws of the State or other

jurisdiction within which its principal office is located.

-SOURCE-

(R.S. Sec. 5219; Mar. 4, 1923, ch. 267, 42 Stat. 1499; Mar. 25,

1926, ch. 88, 44 Stat. 223; Pub. L. 91-156, Sec. 1(a), 2(a), Dec.

24, 1969, 83 Stat. 434.)

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CODIFICATION

R.S. Sec. 5219 derived from act June 3, 1864, ch. 106, Sec. 41,

13 Stat. 111, which was the National Bank Act, and act Feb. 10,

1868, ch. 7, 15 Stat. 34. See section 38 of this title.

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AMENDMENTS

1969 - Pub. L. 91-156, Sec. 2(a), substituted provisions

directing that national banks, for purposes of both Federal and

State tax laws, be treated as banks organized and existing under

the laws of the State or other jurisdiction within which each

bank's principal office is located for provisions placing

restrictions on the taxation of national bank shares and, for the

period until the effective date of such amendment, set out interim

provisions regarding intangible personal property taxes of States

and local governments on national banks.

Pub. L. 91-156, Sec. 1(a), added par. 5.

1926 - Act Mar. 25, 1926, among other changes inserted ''on their

net income'' in cl. (3) of former opening par., and added cl. (4)

thereto, and inserted proviso in former subsec. 1(c).

EFFECTIVE DATE OF 1969 AMENDMENT

Section 1(b) of Pub. L. 91-156 provided that: ''The amendment

made by subsection (a) of this section (setting out interim

provisions regarding intangible personal property taxes of State

and local governments on national banks) shall be effective from

the date of enactment of this Act (Dec. 24, 1969) until the

effective date (Jan. 1, 1973) of the amendment made by section 2(a)

of this Act (removing restrictions on the taxation of national bank

shares and directing that national banks, for purposes of both

Federal and State tax laws, be treated as banks organized and

existing under the laws of the State or other jurisdiction within

which each bank's principal office is located).''

Section 2(b) of Pub. L. 91-156, as amended by Pub. L. 92-213,

Sec. 4(a), Dec. 22, 1971, 85 Stat. 775, provided that: ''The

amendment made by subsection (a) (removing all special restriction

on the taxation of national bank shares by State and local taxing

authorities) becomes effective on January 1, 1973''.

SAVINGS PROVISION

Section 3 of Pub. L. 91-156, as amended by Pub. L. 92-213, Sec.

4(a), Dec. 22, 1971, 85 Stat. 775, provided that:

''(a) Except as provided in subsection (b) of this section, prior

to January 1, 1973, no tax may be imposed on any class of banks by

or under authority of any State legislation in effect prior to the

enactment of this Act (Dec. 24, 1969) unless

''(1) the tax was imposed on that class of banks prior to the

enactment of this Act (Dec. 24, 1969), or

''(2) the imposition of the tax is authorized by affirmative

action of the State legislature after the enactment of this Act

(Dec. 24, 1969).

''(b) The prohibition of subsection (a) of this section does not

apply to

''(1) any sales tax or use tax complementary thereto,

''(2) any tax (including a documentary stamp tax) on the

execution, delivery, or recordation of documents, or

''(3) any tax on tangible personal property (not including cash

or currency), or for any license, registration, transfer, excise

or other fee or tax imposed on the ownership, use or transfer of

tangible personal property,

imposed by a State which does not impose a tax, or an increased

rate of tax, in lieu thereof.''

STATE TAXATION OF FEDERALLY INSURED FINANCIAL INSTITUTIONS; STUDY

AND REPORT BY ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS

Pub. L. 93-100, Sec. 7, Aug. 16, 1973, 87 Stat. 347, eff. on the

30th day after Aug. 16, 1973, as amended by Pub. L. 93-495, title

I, Sec. 114, Oct. 28, 1974, 88 Stat. 1507; Pub. L. 94-222, Sec. 1,

4, Feb. 27, 1976, 90 Stat. 197, 198, eff. Jan. 1, 1976, provided

that it was to be cited as the ''State Taxation of Depositories

Act''; that it was applicable to taxable years or periods beginning

on or after Aug. 16, 1973; that an efficient banking system and the

free flow of commerce would be furthered by clarification of

principles as to State taxation of interstate transactions of banks

and other depositories; that taxes measured by income or receipts

or other ''doing business'' taxes in states where depositories do

not have their principal offices, should be deferred until uniform

and equitable methods are developed; that no such taxes should be

imposed on or after Aug. 16, 1973 and before Sept. 12, 1976; that

''insured depository'' means any bank or institution insured under

the Federal Deposit Insurance Act or the Federal Savings and Loan

Insurance Corporation or any member institution of a Federal home

loan bank; that ''State'' means the several States of the United

States, the District of Columbia, the Virgin Islands, Guam, and

American Samoa; and that the Advisory Commission on

Intergovernmental Relations should study the matter of State

''doing business'' taxes and report to Congress no later than Dec.

31, 1974.

STUDY BY BOARD OF GOVERNORS OF FEDERAL RESERVE SYSTEM; REPORT BY

JUNE 22, 1972

Section 4(b) of Pub. L. 92-213 required the Board of Governors of

the Federal Reserve System to make a study of the probable impact

on the revenues of State and local governments of the extension

until Jan. 1, 1973, under subsection (a), of the termination date

of interim provisions regarding intangible personal property taxes

of State and local governments on national banks and to report the

results of its study to the Congress not later than six months

after Dec. 22, 1971.

STUDY BY BOARD OF GOVERNORS OF FEDERAL RESERVE SYSTEM; REPORT BY

DEC. 31, 1970

Section 4 of Pub. L. 91-156 provided that the Board of Governors

of the Federal Reserve System make a study to determine the

probable impact on the banking system and other economic effects of

the changes in existing law made by section 2 of this Act (amending

this section) and that such study include the Board's

recommendation as to what additional Federal legislation may be

needed to reconcile the promotion of economic efficiency in the

banking system with the achievement of effectiveness and local

autonomy in meeting the fiscal needs of the States and their

political subdivisions. The results of the Board's study were to

be made to Congress not later than December 31, 1970.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 932 of this title.

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12 USC SUBCHAPTER IV - STATE BANK CIRCULATION 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 4 - TAXATION

SUBCHAPTER IV - STATE BANK CIRCULATION

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SUBCHAPTER IV - STATE BANK CIRCULATION

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12 USC Sec. 561 to 570 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 4 - TAXATION

SUBCHAPTER IV - STATE BANK CIRCULATION

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Sec. 561 to 570. Omitted

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REPEALS

Provisions of these sections were incorporated in Title 26,

Internal Revenue Code, as follows:

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This Title Title 26

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561 1905, I.R.C. 1939; 4882, I.R.C.

1954

562 1900(b)(2), I.R.C. 1939; 4881,

I.R.C. 1954

563 1900(b)(2) I.R.C. 1939; 4881,

I.R.C. 1954

564 1902(b), I.R.C. 1939; 6151(a),

I.R.C. 1954

565 1901, I.R.C. 1939; 4883, I.R.C.

1954

566 1902(a)(1)(2), I.R.C. 1939;

6011(a), 6065(a), 6071,

6091(b)(1), (2), I.R.C. 1954

567 1903, 1904, I.R.C. 1939; 4885,

I.R.C. 1954

568 1902(a)(4), I.R.C. 1939; omitted,

I.R.C. 1954

569 1906, I.R.C. 1939; 4883, I.R.C.

1954

570 3798, I.R.C. 1939; 7507, I.R.C.

1954

-------------------------------

Insofar as they related exclusively to internal revenue they were

repealed by section 4(a) of enacting section of 1939 Internal

Revenue Code, preceding subtitle A of Title 26, I.R.C. 1939.

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