Ohio Code 5726.04 – Amount of tax
(A)(1) The tax levied on a financial institution other than a de novo bank organization under this chapter shall be the greater of the following:
Terms Used In Ohio Code 5726.04
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Bank organization: means any of the following:
(1) A national bank organized and operating as a national bank association pursuant to the "National Bank Act" 13 Stat. See Ohio Code 5726.01
- Call report: means the consolidated reports of condition and income prescribed by the federal financial institutions examination council that a person is required to file with a federal regulatory agency pursuant to 12 U. See Ohio Code 5726.01
- De novo bank organization: means a bank organization that first began operations in the taxable year preceding the current tax year or in either of the two immediately preceding taxable years. See Ohio Code 5726.01
- Financial institution: means a bank organization, a holding company of a bank organization, or a nonbank financial organization, except when one of the following applies:
(1) If two or more such entities are consolidated for the purposes of filing an FR Y-9, "financial institution" means a group consisting of all entities that are consolidated in the FR Y-9. See Ohio Code 5726.01
- Person: includes an individual, corporation, business trust, estate, trust, partnership, and association. See Ohio Code 1.59
- Reporting person: means one of the following:
(1) In the case of a financial institution described in division (H)(1) of this section, the top-tier holding company required to file an FR Y-9. See Ohio Code 5726.01
- Taxable year: means the calendar year preceding the year in which an annual report is required to be filed under section 5726. See Ohio Code 5726.01
- Total equity capital: means the sum of the common stock at par value, perpetual preferred stock and related surplus, other surplus not related to perpetual preferred stock, retained earnings, accumulated other comprehensive income, treasury stock, unearned employee stock ownership plan shares, and other equity components of a financial institution. See Ohio Code 5726.01
(a) A minimum tax equal to one thousand dollars;
(b) The product of the total Ohio equity capital of the financial institution, as determined under this section, multiplied by eight mills for each dollar of the first two hundred million dollars of total Ohio equity capital, by four mills for each dollar of total Ohio equity capital greater than two hundred million and less than one billion three hundred million dollars, and by two and one-half mills for each dollar of total Ohio equity capital equal to or greater than one billion three hundred million dollars.
(2) The tax levied on a de novo bank organization under this chapter shall equal the difference obtained by subtracting one million dollars from the amount of tax that would be calculated for the de novo bank organization under division (A)(1)(b) of this section, provided that if that difference is equal to or less than zero, no tax shall be due for the taxable year.
A de novo bank organization with no tax due for a taxable year pursuant to this division shall be considered a financial institution that “paid the tax imposed by section 5726.02 of the Revised Code based on” that taxable year for the purposes of division (E)(3) of section 5751.01 of the Revised Code.
(B) If the reporting person for a financial institution files an FR Y-9 or call report, the total equity capital of the financial institution shall equal the total equity capital shown on the reporting person‘s FR Y-9 or call report as of the end of the taxable year. The total equity capital of all other financial institutions shall be reported as of the end of the taxable year in accordance with generally accepted accounting principles.
(C) For the purposes of this section:
(1) “Total Ohio equity capital” means the product of (a) the total equity capital of a financial institution as of the end of a taxable year to the extent that the total equity capital does not exceed fourteen per cent of the financial institution’s total assets multiplied by (b) the Ohio apportionment ratio calculated for the financial institution under section 5726.05 of the Revised Code.
(2) “Total assets” means:
(a) In the case of a financial institution described in division (H)(1) of section 5726.01 of the Revised Code, the total consolidated assets as shown on the reporting person’s FR Y-9 as of the end of the taxable year;
(b) In the case of a financial institution described in division (H)(2) or (3) of section 5726.01 of the Revised Code, the total consolidated assets as shown on the reporting person’s call report as of the end of the taxable year;
(c) In the case of all other financial institutions, the total consolidated assets of the financial institution as of the end of the taxable year in accordance with generally accepted accounting principles.
The tax commissioner may audit a reporting person’s total assets to confirm the financial institution’s actual total consolidated assets and may make any adjustments necessary.
(D) All payments received from the tax levied under this chapter shall be credited to the general revenue fund.
(E) The commissioner may adopt rules to provide additional guidance for the application of this section.
Last updated August 8, 2023 at 11:24 AM