With respect to the tax imposed on banks and other financial institutions, gross income shall not include:
(a) Interest received on the obligations of the United States, its agencies and instrumentalities;
(b) Interest received on the obligations of this or any other state, territory or possession of the United States, or any political subdivision of any of the foregoing or of the District of Columbia; or
(c) Interest received on investments or loans primarily secured by first mortgages or deeds of trust on residential property occupied by nontransients.
“Banking business” or “financial organization” means any bank, banking association, trust company, industrial loan company, small loan company, or licensee, building and loan association, savings and loan association, credit union, finance company, investment company, investment broker or dealer, and any other similar business organization at least ninety percent (90%) of the assets of which consists of intangible personal property and at least ninety percent (90%) of the gross receipts of which consists of dividends, interest and other charges derived from the use of money or credit.
(Passed 8-26-08.)