§ 548. — State taxation.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC548]
TITLE 12--BANKS AND BANKING
CHAPTER 4--TAXATION
SUBCHAPTER III--NATIONAL BANK SHARES
Sec. 548. State taxation
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.
(R.S. Sec. 5219; Mar. 4, 1923, ch. 267, 42 Stat. 1499; Mar. 25, 1926,
ch. 88, 44 Stat. 223; Pub. L. 91-156, Secs. 1(a), 2(a), Dec. 24, 1969,
83 Stat. 434.)
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.
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, Secs. 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.
Section Referred to in Other Sections
This section is referred to in section 932 of this title.
