Chap. 213.—An ACT to amend and re-enact section 8, section 17, as amended
and re-enacted by an act approved December 12, 1903, and section 18 of
an act entitled an act to raise revenue for the support of the government
and public free schools, and to pay the interest on the public debt, and to
provide a special tax for pensions, as authorized by section 189 of the Con-
stitution, approved April 16, 1903.

Approved March 12, 1908.

1. Be it enacted by the general assembly of Virginia, That section
eight, section seventeen, as amended and re-enacted by an act approved
December twelfth, nineteen hundred and three, and section eighteen, of
an act entitled an act to raise revenue for the support of the government
and public free schools, and to pay the interest on the public debt,
and to provide a special tax for pensions, as authorized by section one
hundred and eighty-nine, of the Constitution, approved April six-
teen, nineteen hundred and three, be amended and re-enacted so as
to read as follows:
§8. The classification under schedule ( shall be as follows:

Personal Property in Choses in Action, et cetera.

First. Bonds, notes and other evidences of debt, including bonds of
other States than Virginia, bonds of counties, cities and towns, bonds of
railroad and canal companies and other corporations, bonds of individuals
and all demands and claims, however evidenced, whether secured by deed
of trust, judgment, or otherwise, or not so secured.

The commissioner shall require each person, natural or artificial,
residing in his district, city or town, to make out and deliver to said com-
missioner a list in detail of the date, amount for which originally
given, but not the name of the debtor, the dates and amounts of the
credits thereon, the balance due, and the time of payment of all bonds,
notes, and other evidences of debt due and payable to such person in
excess of one hundred dollars, and a statement of the aggregate amount
of all bonds, notes, and other evidences of debt under one hundred
dollars each. The auditor of publia accounts shall furnish the neces-
sary blanks for such lists and statements to the commissioner of the
revenue.

This list and statement shall be signed and sworn to by the tax-
payer before the commissioner of the revenue or some notary public,
or some person authorized to administer oaths, who shall certify that
said list was signed and sworn to before him. The commissioner shall
sign the list and determine the value of the bonds, notes, and other
evidences of debt therein enumerated, subject to an appeal from his
valuation to the circuit, county or corporation court. The said list
and statement shall include bonds of railroad and canal companies,
bonds of counties, cities, towns and bonds of other States and corpora-
tion bonds of individuals, and all demands and claims, however evi-
denced, whether due or not, from debtors residing out of or within the
State or county, whether secured by a, deed of trust or by judgments or
not, deducting from the aggregate amount thereof all such bonds, de-
mands, or claims not otherwise deducted owing to others as such princi-
pal debtor, and not as guarantor, endorser, or surety; but not deduct-

‘ing any money that may be due to others on account of the purchase
of securities which are non-taxable; but no bond, demand, or claim
constituting a part of the capital as defined in this act of the business
done out of this State, or any capital used by any merchant or manu-
facturer, and taxed under this act shall be included in this section.

The list and statement herein provided for shall be delivered by
said commissioner to the clerk of the circuit, county or corporation court
of his county or city, who shall file the same in his office, properly
labeled, keeping the list for each year separate. If any person, firm, or
corporation shall, with a view to evade the payment of taxes, fail or
refuse to make out and deliver under oath such list and statement as
herein provided for of any such bonds, notes, or other evidences of
debt, then the omitted evidences of debt shall not be recoverable by
action at law or suit in equity in any of the courts of this Common-
wealth or by any legal process, or by sale under deed of trust, or other-
wise, until they shall have been reported for, assessment, and the taxes
paid thereon for the years that they should have been paid, with an
addition of fifty per centum of the amount of said unpaid taxes; and
the failure to make out such list and statement to the said commissioner
shall be taken as prima facie evidence of the intention to so evade the
payment of taxes.

The auditor of public accounts, when he furnishes the necessary
blanks as above provided, shall include the form of oath which he shall
append thereto the statement that no part of the indebtedness claimed
by the tax-payer as a deduction from the amount of all bonds, notes,
and other evidences of debt due to such tax-payer is on account of the
purchase of securities which are non-taxable; and further, that no part
of said indebtedness was created with a purpose to evade the payment
of taxes; and anyone who shall sign and swear to a false list shall be
deemed guilty of perjury. But where in any such action of law or suit
in equity it is ascertained that there are unpaid taxes and penalties on
the evidence of debt sought to be enforced, and the suitor makes affi-
davit that he is unable to pay these taxes and penalty, but is willing
for the same to be paid out of ‘the first recovery on the evidence of
debt, the court shall have authority to enter as a part of any judg-
ment or decretal order in said proceedings that the amount of taxes and
penalties due and owing shall be paid to the proper officer out of the
first collection on said judgment or decree.

Second. All capital of individuals, including moneys, credits, or
other thing loaned, used, or employed in business out of this State.

Third. Capital of incorporated joint stock companies uot otherwise
taxed; and when all of such capital is taxed by the State of Virginia,
the shares of stock in the hands of individual shareholders shall not be
further taxed for State purposes; but real estate belonging to such com-
panies shall not be held to be capital, but shall be listed and taxed as
property, and not as capital.

Fourth. Capital of individuals, invested, used or employed in any
trade or business not otherwise taxed. Moneys and credits actively used
and employed in carrying on the trade or business; materials, goods,
wares, and merchandise on hand, and all solvent bonds, demands, or
claims made or contracted in the course of business during the preced-
ing year, shall be held to be capital in such trade or business, and shall
not be taxed ‘otherwise than as such capital; but real estate shall not be
listed as such capital; but shall be assessed and taxed as other specific
property.

Fifth. The aggregate amount of money and the value of principal
and interest of personal estate and credits under control of a court
receiver or. commissioner, in pursuance of any order, judgment or
decree of any court, or of an agent, guardian, or other fiduciary.
Sixth. Money ‘and credits or personal estate deposited to the credit
of any suit, and not in the hands of a receiver, except funds, credits,
or estate placed in the hands of the receiver of a court or deposited to
the credit of a suit to await adjudication and disbursement upon debts
reported in suits or proceedings pending in such court.

Seventh. Money on deposit with any bank or other corporation
or firm or person.

Eighth. Shares of stock of all incorporated companies except com-
panies all of whose capital is taxed by this State; companies which pay
a franchise tax in this State; and banks, banking associations, trust
and security companies, which are otherwise taxed in this State.

$17. No tax shall be assessed upon the capital of any bank or banking
association organized under the authority of this State or of the United
States, nor upon the capital of any trust or security company chartered
by this State, but the stockholders in such banks, banking associations,
trust and security companies shall be assessed and taxed on their shares
of stock therein. Each bank, banking association, trust and security
company aforesaid, on the first day of February in each year, shall make
up and return to the commissioner of the revenue of the county, city
or town, or district in which said bank, banking association, trust or
security company is located, a report, in which shall be given the names
and residences of all its stockholders; the number and actual value of the
shares of stock held by each stockholder; and the amounts of all bonds,
demands and claims owing by each stockholder as principal debtor
and not otherwise deducted from his taxable property, but not includ-
ing any money that may be due on account of the purchase of securities
which are non-taxable. With this report there shall be filed the affi-
davit of each stockholder that the amount of the bonds, demands and
claims stated in said report as owing by him as principal debtor is
so owing by him as principal debtor, that this amount has not been
and will not be otherwise deducted from his taxable property, and that
it does not include any money that may be due on account of the pur-
chase of securities which are non-taxable. From the total value of the
shares of stock of any such bank, banking association, trust or security
company, which shall be ascertained by adding together its capital,
surplus and undivided profits, there shall be deducted the value of its
real estate otherwise taxed in this State, and the actual value of each
share of stock shall be its proportion of the remainder. In assessing
said shares there shall be deducted from the actual values of the shares
held by the stockholders the amounts of bonds, demands and claims
owing by them as principal debtors and not otherwise deducted from
their taxable property, but not deducting any money that may be due
on account of the purchase of securities which are non-taxable; provided
that such deductions from the assessment of such shares of any bank,
banking association, trust or security company, shall not in any case
exceed ten per centum of the total actual value of all its shares of stock.
Each bank, banking association, trust and security company aforesaid
shall at the time it pays the taxes assessed against its shares of stock as
aforesaid pay to each stockholder (not as a dividend but as deducted
taxes) such an amount or proportionate amounts, if any, as he may be
entitled to by reason of deducting the amounts of the bonds, demands
and claims owing by him as aforesaid.

§18. It shall be the duty of said commissioner of the revenue, as soon
as he receives such report, to assess each stocxholder upon such actual
value of the shares of stock owned by him, less the amount of bonds,
demands and claims owing by him as principal debtor and not other-
wise deducted from his taxable property, as provided in the preceding
section, but not including any money that may be due on account of
the purchase of securities which are non-taxable, a tax of twenty-five
cents on every hundred dollars’ value thereof, the proceeds of which
shall be applied to the support of the government, and a further
tax of ten cents on every hundred dollars’ value thereof, which shall
be applied to the support of the public free schools of the State, and he
shall make out three assessment lists, give one to the bank, banking
association, trust or security company, send one to the auditor of public
accounts and retain one. The assessment list delivered to said bank,
banking association, trust or security company shall be notice to the
bank, banking association, trust or security company, of a tax assessed
against its stockholders, and each of them, and have the legal effect
and force of a summons upon suggestion formally issued and regularly
served. The tax assessed upon each stockholder in said bank, banking
association, trust or security company shall be the first lien upon the
stock standing in his name and upon the dividends due and to become
due thereon, no matter in whose possession found, and have priority over
any and all liens by deeds of trust, mortgages, bills of sale, or other as-
signment made by the owner or holder, and take priority over all
liens, by execution, garnishment, or attachment process sued out by
creditors of the stockholder. The bank, banking association, trust or
security company shall hold the dividend or other fund which belongs
to the stockholder and in its custody at the time the assessment list
is received, or that thereafter shall come under its control, for the
use of the Commonwealth, and apply the same to the payment of the
tax assessed, and when thus applied shall be acquitted and discharged
from all liability to the stockholder for the money thus disbursed.