§ 44-14-3 - Tax on state banks.
SECTION 44-14-3
§ 44-14-3 Tax on state banks. – (a) Each banking institution organized or incorporated under the laws of thisstate or having its principal place of business or a branch located within thelimits of this state shall annually pay a tax or excise to the state for theprivilege of existing as a banking institution during any part of the taxableyear. The tax is measured by:
(1) Net income, as defined in § 44-14-10, for the incomeperiod and is computed at the rate of nine percent (9%) of the net income; or
(2) Authorized capital stock as of the last day of the incomeperiod and is computed at the rate of two dollars fifty cents ($2.50) for eachten thousand dollars ($10,000), or fractional part, of an authorized capitalstock; whichever measure yields the greater amount of tax.
(b) In the case of a banking institution not organized orincorporated under the laws of this state, but having its principal place ofbusiness or branch located within the limits of this state, its net income isapportioned to this state under rules and regulations promulgated by the taxadministrator.
(c) A banking institution having an election in effect undersubchapter S, 26 U.S.C. § 1361 et seq., (including a banking institutionthat is a qualified subchapter S subsidiary, as defined by 26 U.S.C. §1361, of a corporation or banking institution having an election in effectunder 26 U.S.C. § 1361 et seq.) is not subject to the Rhode Island tax orexcise on banking institutions, except that the banking institution shall besubject to the provisions of subdivision (a)(1) of this section to the extentthe income is subjected to federal tax under subchapter S.
(2) The shareholders of the banking institution who areresidents of Rhode Island shall include in their income their proportionateshare of the banking institution's federal taxable income.
(3) If any shareholder of the banking institution is anonresident during any part of the banking institution's taxable year, he orshe shall file a Rhode Island personal income tax return in accordance with therules and regulations as promulgated by the tax administrator.