Chap. 61.—An ACT to require all water companies, heat, light and power
companies and gas companies to pay a franchise tax, a property tax, and
to furnish certain reports to the State corporation commission.

Approved February 26, 1910.

1. Be it enacted by the general assembly of Virginia, That all cor-
porations doing in Virginia the business of furnishing water or heat,
light and power, whether by means of gas or electricity, shall, on or
before September first of each year, report to the State corporation com-
mission al] of its real and personal property of every description in this
State, belonging to it on the thirtieth day of June preceding, showing
particularly in what city, town, county and school district the property
is located, in which said report shall be included all water-power rights
and privileges, dams, flumes and canals. This report shall be itemized
as set forth in sections two, three and four of this act. Each such cor-
poration shall also report its gross receipts for business done in Virginia
for the year ending on the thirtieth day of June preceding. The reports
herein required shall be verified by the oath of the president or other
proper officer or person making the same. The State corporation com-
mission shall, after thirty days’ notice previously given to the president
or other proper officer or person, assess the value of the property of each
such corporation, and shall assess the franchise tax hereinafter provided
for: provided, however, that any property of such corporations assessed
by the commissioners of the revenue as of February first, nineteen hun-
dred and ten, shall not be assessed by the State corporation commission
for the year nineteen hundred and ten. ,Should any such corporation fail
to make the reports required by this section on or before the first day
of September of each year, the State corporation commission shall, at
such time as it may elect, upon the best and most reliable information that
can be procured, assess the value of the property of such corporation,
and shall; in the execution of such duties, be authorized and empowered
to send for persons and papers, and administer an oath to witnesses, and
examine the same. The State corporation commission shall assess upon
the said property the tax imposed thereon by law, and the franchise tax
imposed by this act. A certified copy of the assessment when made, shall
be immediately forwarded bv the clerk of the State corporation commis-
sion to the auditor of public accounts and to the president or other
proper officer of each such corporation, and such corporation shall pay
into the treasury of the State by the first day of December following the
taxes assessed against it. It shall be the duty of the clerk of the State
corporation commission to furnish to the council of every city and town,
and to the board of supervisors of every district wherein any property
belonging to such corporation is situated, a certified copy of assessment
made by the State corporation commission of such company’s property,
which assessment shall definitely show the character of the property, its
value and location for the purpose of taxation, in each city, town, county
and district, so that city, town, county and district levies may be im-
posed upon the same: provided, however, that it shall be the duty of
the county superintendent of schools in each county in which any such
corporation set forth in this act does business or owns property, on or
before the first day of July of each year, to furnish each such corpora-
tion the boundaries of the school districts of the said county wherein
any such property is situated or business done. Any such corporation
failing to pay the tax into the treasury within the time herein prescribed
shall incur a penalty thereon of five per centum, which shall be added
to the amount of said tax. Any such company which shall fail to make
the report hereinbefore required within the time herein prescribed shall
be liable to a fine of not less than twenty-five nor more than one hun-
dred dollars for each day such company may be in default in making
such report, the said fine to be imposed and judgment entered therefor
by the State corporation commission after thirty days’ notice to any
such defaulting corporation to appear before said commission and show
cause, if any, against the imposition of such fine, subject to appeal to the
supreme court of appeals.

2. All electric light and power companies shall, to the extent that the
property hereinafter particularly set forth is situated in Virginia, report
to the State corporation commission the following property, which shall
be particularly set forth in said report: the number of feet of conductor
or cable, number of conductors, insulation, size of conductor and standard
of gauge, total cost of conductor installed; number, kind, height, diam-
eter at top, average age, cost, including arms and insulators, of poles car-
rying conductors; number, kind and total cost of lamp poles erected ;
number of arc lamps, type, capacity in amperes, and total cost of same;
number of incandescent lamps, candle power, and total cost of same;
number of transformers, capacity of each in kilowatts, and the total cost
of same installed; length in feet and size of each conduit, number of
ducts, type of ducts, number of duct feet in each size conduit, character
of excavation, manner in which the ducts are laid, number of manholes
and handholes, size and character of manholes and handholes, character
and number of square yards of paving, and total cost of each conduit;
the number of feet of cable in each conduit, number of conductors, char-
acter of insulation, working pressure, size and standard of gauge, total
cost of cable installed with junction boxes, and the number, type and total
cost of junction boxes installed; the number and capacity each in kilo-
watts of subway transformers and the total cost of subway transformers
installed.

3. All corporations manufacturing and furnishing gas shall report
the diameter in inches of *heir mains, length of cast iron mains, length
of steel and wrought iron nsains, the depth laid of mains, the kind of soil
or rock excavated for same, the age, cost per foot, including paving, kind
of paving, and total cost as laid; the number, size, age and cost of each
installed of valves and curb boxes, and the total cost of same; the number,
diameter in inches, length in feet, cost per foot, including paving, and
total cost of services, including meters; number of street lamps, cost of
same installed.

4. All corporations furnishing and selling water shall report the
diameter in inches of mains, length of cast iron mains, length of steel
and wrought iron mains, the depth laid and the kind of soil or rock
excavated, the age and cost per foot, including paving, kind of paving
and total cost of said mains; the number, size, age and cost of each
92 ACTS OF ASSEMBLY.

gate installed, and the total cost of gates installed; the number, size, age
and cost of each hydrant, and the total cost of hydrants installed; the
number, diameter in inches, length in fect, cost per foot, including pav-
ing, of each service, and the total cost of service.

5. The cost of every item in the foregoing schedules shall be an ac-
curate estimate of the fair cash value; and in case any such corporation
shall be unable to furnish any one or more of the details required to be
reported or contained in any of the said schedules, and shall submit to
the corporation commission satisfactory evidence of its inability to do 60,
the corporation commission may relieve such corporation from reporting
any such detail as it may be unable to report or furnish: provided, how-
ever, that such inability on the part of the corporation, or such relief by
the corporation commission, shall not have the effect of exempting any
such corporation from liability to full taxation under this act.

6. Railway companies, which, in addition to operating a railroad, also
sell heat, light or power within this State, shall come within the pro-
visions of this act. The value of the plant of each such company shall
be apportioned as between its heating, lighting and power business on
the one hand, and its railroad business on the other hand, upon the basis
of its gross receipts from each department, and each such company shall
segregate its gross receipts from the sale of heat, light and power from
its gross receipts from its railroad, and report its gress receipts from the
sale of heat, light and power to the State corporation commission, and
pay the property and license tax as herein provided.

?. Every corporation coming within the provisions of this act shall
pay to the State an annual State franchise tax, equal to one per centum
of its gross receipts, for the privilege of exercising its franchises in this
State, which, with the taxes hereinbefore provided for, shall be in lieu
of all taxes or license charges whatsoever upon the franchises of such
corporation, and the shares of stock issued by it, and upon all its property
as hereinbefore provided: provided, that nothing herein contained shall
exempt such corporation from the annual fee required by section one
hundred and fifty-seven of the Constitution, or from assessments for
street and other local improvements, which shall be authorized by law,
or from the county, city, town, district or road levies hereinbefore pro-
vided for: and provided further, that nothing herein contained shall
annul or interfere with or prevent any contract or agreement by ordi-
nance between such corporations and municipalities as to compensation
for the use of the streets or alleys of such municipalities by such corpora-
tions,

For the year nineteen hundred and ten the franchise tax shall be
based upon the said eorporation’s gross receipts for the year ending June
thirtieth, nineteen hundred and ten: provided, however, that the fran-
chise tax assessed against each such corporation under section forty-three
of the tax bill for the year nineteen hundred and ten shall be deducted
from the franchise tax of one per centum on its gross receipts for year
ending June thirtieth, nineteen hundred and ten.

The real and personal property of such corporation, other than its
franchise, shall be assessed on the valuation fixed by the State corpora-
tion commission with county, city, town, district and road levies. at the
same rate as real and personal property of natural persons are assessed
with such levies.

No State tax, county, city, town, district or road levy shall be laid
on the net income of any such corporation, nor shall any county, city,
town, district or road levy be laid on the gross receipts of any such com-

any.
, All taxes and levies, shall, until paid, be a hen upon the property
within this State of the corporation owning the same, and take precedence
of all other liens or encumbrances.

Any such corporation, or the State or any county or city, at the in-
stance of the attorney general of the State, or of the Commonwealth’s
attorney for any county or city, aggrieved by the assessment and ascer-
tainment of such taxes, may, within thirty days after receiving a certi-
fied copy thereof, apply for relief to the circuit court of the city of Rich-
mond. Notice of the application setting forth the grounds of complaint,
verified by affidavit if the appeal be taken by any such corporation, shall
be served on the State corporation commission, and on the attorney
general, whose duty it shall be to represent the Commonwealth, or if
the appeal be taken by the State or any county or city, notice of the
application, setting forth the grounds of complaint, shall be served on
such corporation. If the court be of the opinion that the assessment
or tax is excessive, it shall reduce the same, but if of opinion that it is
insufficient it shall increase the same. Unless the applicant pay the taxes
under protest when due, the court, if the decision is adverse to the ap-
plicant, shall, in disallowing the application, give judgment against it
for the taxes assessed by the State corporation commission, and for a
sum, by way of damages, equal to interest at the rate of one per centem
per month upon the amount of the taxes from the time same were pay-
able. If the decision is in favor of such corporation, in whole or in part,
appropriate relief shall be granted, including the right to recover any
excess of taxes that may have been paid, with legal interest thereon, and
the legally taxable cost of said application from the State or local authori-
ties, or both, as the case may be, the judgment to be enforceable by man-
damus or other proper process issuing from the court finally adjudicating
the application. If the decision be in favor of the State or any county
or city, appropriate relief shall be granted, and the court shall enforce its
judgment by mandamus or other proper process.

The supreme court of appeals may, subject to the provisions of article
six of the Constitution, allow a writ of error to either party.

8. In order that the revenues provided in this act may certainly be
available for the coming fiscal year, an emergency is hereby declared, and
this act shall be in force from its passage.