Tax Data Series

Corporation Franchise Tax

Corporate Franchise Tax Tables:
Number of Financial Institutions and Reported Tax Liability by Type of Institution, Tax Year 2007

This table shows a total tax year 2007 corporate franchise tax liability (before credits) for financial institutions of $159.7 million, a decrease of 2.9 percent from tax year 2006.  Banks, while making up approximately 65 percent of the total number of financial institutions, reported tax liability of $116.9 million, or 73 percent of the total liability. Savings institutions, making up 25 percent of the total number of financial institutions, reported tax liability of $37.0 million, or approximately 23 percent of the total liability. The remaining $5.8 million of tax liability was reported by other types of financial institutions.

Financial institutions are not required to compute their tax liabilities on the two alternative tax bases (net income and net worth) applied to other corporations. Financial institutions are subject to a tax on net worth only, but at a rate of 13.0 mills rather than 4.0 mills for other corporations.