An Act to clarify the liability of national banks for certain taxes
PL 91-156 (H.R.7491), enacted 12/24/1969

434 
PUBLIC LAW 91-156-DEC. 24, 1969 
[83 STAT. 
Public Law 91-156 
December 24, 1969 
A N 
A C T 
[H. R. 7491] 
To clarify the liability of national banks for certain taxes. 
Be it enacted hy the Senate and House of Rej^resentatives 
of the 
National banks. 
United States of America in Congress assembled. 
Taxation by 
j 
a 
i 
States. 
§ 1, Temporary amendment of section 5219,, Revised Statutes 
(a) Section 5219 of the Revised Statutes (12 U.S.C. 548) is amended 
by adding at the end thereof the following: 
"5. (a) In addition to the other methods of taxation authorized by 
the foregoing provisions of this section and subject to the limitations 
and restrictions specifically set forth in such provisions, a State or 
political subdivision thereof may impose any tax which is imposed gen-
erally on a nondiscriminatory basis throughout the jurisdiction of 
such State or political subdivision (other than a tax on intangible 
personal property) on a national bank having its principal office within 
such State in the same manner and to the same extent as such tax is 
imposed on a bank organized and existing under the laws of such 
State. 
"(b) Except as otherwise herein provided, the legislature of each 
State may impose, and may authorize any political subdivision thereof 
to impose, the following taxes on a national bank not having its prin-
cipal office located within the jurisdiction of such State, if such taxes 
are imposed generally throughout such jurisdiction on a nondis-
criminatory basis: 
"(1) Sales taxes and use taxes complementary thereto upon 
purchases, sales, and use within such jurisdiction. 
"(2) Taxes on real property or on the occupancy of real prop-
erty located within such jurisdiction. 
"(3) Taxes (including documentary stamp taxes) on the exe-
cution, delivery, or recordation of documents within 
such 
jurisdiction. 
"(4) Taxes on tangible personal property (not including cash 
or currency) located within such juriecliction. 
" (5) License, registration, transfer, excise, or other fees or taxes 
imposed on the ow-nership, use, or transfer of tangible personal 
property located within such jurisdiction. 
" (c) No sales tax or use tax complementary thereto shall be imposed 
pursuant to this paragraph 5 upon purchases, sales, and use within the 
taxing jurisdiction of tangible personal property which is the subject 
matter of a written contract of purchase entered into by a national 
bank prior to September 1,1969. 
"State." 
"(d) As used in this paragraph 5, the term 'State' means any of the 
several States of the United States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, and Guam." 
Effective 
(b) The amendment made by subsection (a) of this section shall be 
^^^^' 
effective from the date of enactment of this Act until the effective date 
of the amendment made by section 2 (a) of this Act. 
§ 2. Permanent amendment of section 5219, Revised Statutes 
(a) Section 5219 of the Revised Statutes (12 U.S.C. 548) is amended 
to read: 
"SEC. 5219. 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." 
Effective 
^(j^^ 'pj^g amendment made bj subsection (a) becomes effective on 
January 1, 1972. 
83 STAT. ] 
PUBLIC LAW 91-157-DEC. 24, 1969 
435 
§ 3* Saving provision 
(a) Except as provided in subsection (b) of this section, prior to 
January 1, 1972, no tax may be imposed on any class of banks by or 
under authority of any State legislation in effect prior to the enact-
ment of this Act unless 
(1) the tax was imposed on that class of banks prior to the 
enactment of this Act, or 
(2) the imposition of the tax is authorized by affinnative action 
of the State le<^islature after the enactment of this Act. 
(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 (includinf^ a documentary stamp tax) on the exe-
cution, 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 tan-
gible personal property, 
imposed by a State which does not impose a tax, or an increased rate of 
tax, in lieu thereof. 
§ 4. Study by Board of Governors of the Federal Reserve System 
(a) The Board of Governors of the Federal Reserve System (here-
inafter referred to as the "Board") shall make a study to determine 
the probable impact on the banking systems and other economic effects 
of the changes in existing law to be made by section 2 of this Act gov-
erning income taxes, intangible property taxes, so-called doing business 
taxes, and any other similar taxes which are or may be imposed on 
banks. In conducting the study the Board shall consult with the 
Secretary of the Treasury and appropriate State banking and taxing 
authorities. 
(b) The Board shall make a report of the results of its study to the cfn^^esV 
Congress not later than December 31, 1970. The report shall include 
the Board's recommendations as to what additional Federal legisla-
tion, if any, may be needed to reconcile the promotion of the economic 
efficiency of the banking systems of the Nation with the achievement of 
effectiveness and local autonomy in meeting the fiscal needs of the 
States and their political subdivisions. 
Approved December 24, 1969. 
Public Law 91-157 
A N A C T 
December 24, 1969 
To amend section 510 of the International Claims Settlement Act of 1949 to 
[H.R. ii7li] 
extend the time within which the Foreign Claims Settlement Commission is 
required to complete its affairs in connection with the settlement of claims 
against the Government of Cuba. 
Be it enacted hy the Senate and House of Rej>rese7itatives of the 
United States of America in Congress assembled^ That section 510 of ^^^&-
the International Claims Settlement Act of 1949 (22 U.S.C. 1643i) is seuSnt. 
amended to read as follows: 
78 stat. 1112; 
"SEC. 510. The Commission shall complete its affairs in connection 
with the settlement of claims pursuant to this title not later than July 6, 
1972.'' 
Approved December 24, 1969. 
80 Stat. 1365.