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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | May 17, 2023 10:15 AM |
|---|---|
| From: | Representative Napoleon J. Nelson and Rep. Keith J. Greiner |
| To: | All House members |
| Subject: | Clarifying the Goodwill deduction within the Bank Shares Tax |
In the near future, I plan to introduce legislation that would clarify that any goodwill recorded in the Report of Condition filed by banks with the FDIC is excluded from the Bank Shares Tax calculation, as intended by Act 55 of 2007. Act 55’s intent was to exclude goodwill for all combinations and acquisitions. In calculating the Bank Shares Tax, the value of any goodwill and US obligations as recorded in the Report of Condition is deducted from total bank equity. The goodwill deduction applies to any goodwill required to be recorded by banks due to changes in accounting rules that took effect July 1, 2001. Currently, the goodwill deduction is not available when a combination of two bank holding companies occurs followed by or simultaneous with the merger of their bank subsidiaries. Because most bank combinations occur through holding company mergers, this action could deny most banks the benefits of goodwill deductions that have been claimed for many years, and not previously denied. Please join me in co-sponsoring this legislation. |
Introduced as HB1336