Chap. 238.—An ACT to amend and re-enact section 44 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 spe-
cial tax for pensions as authorized by section 189 of the Constitution,
approved April 16, 1903, and acts amendatory thereof. [S B 335]

Approved March 15, 1918.

Be it enacted by the general assembly of Virginia, That section
forty-four of an act entitled an act to raise revenue for the sup-
port of the government and public free schools, and to pay the
interest on the public debt, and to provide a special tax for pen-
sions as authorized by section one hundred and eighty-nine of the
Constitution, approved April sixteenth, nineteen hundred and three,
as heretofore amended, be amended and re-enacted so as to read
as follows: — a
Sec. 44. Tax on inheritances.— U All property within the juris-
diction of the Commonwealth, real, personal and mixed, and any
interest therein, whether belonging to inhabitants of the Common-
wealth or not, which shall pass by will, or grant or gift (except
in case of a bona fide purchase for full consideration in money or
money’s worth) made or intended to take effect in possession or
enjoyment after the death of the grantor, whether absolutely or in
trust, except to or for the use of (Class A) the husband, wife, lineal
ancestor, or lineal descendant of a decedent, or to or for the use of
(Class B) the brother, sister, nephew, or niece of a decedent, shall
be subject to a tax of five per centum of the fair market value or
so much thereof as is in excess of one thousand dollars and not in
excess of fifty thousand dollars, to a tax of seven per centum
upon all in excess of fifty thousand dollars and up to one hundred
thousand dollars, to a tax of nine per centum upon all in excess
of one hundred thousand dollars and up to five hundred thousand
dollars, to a tax of twelve per centum on all in excess of five hun-
dred thousand dollars and up to one million dollars, and to a tax
of fifteen per centum upon all in excess of one million dollars; and
such property which shall so pass to or for the use of a member
of Class A shall be subject to a tax of one per centum of the fair
market value of so much thereof as is in excess of ten thousand
dollars and not in excess of fifty thousand dollars, to a tax of
two per centum upon all in excess of fifty thousand dollars and
up to one hundred thousand dollars, to a tax of three per centum
upon all in excess of one hundred thousand dollars and up to five
hundred thousand dollars; to a tax of four per centum upon all
in excess of five hundred thousand dollars and up to one million
dollars, and to a tax of five per centum upon all in excess of one-
million dollars; and such property which shall so pass to or for
the use of a member of Class B shall be subject to a tax of two
per centum of the fair market value of so much thereof as is in
excess of four thousand dollars. and not in excess of fifty thou-
sand dollars, to a tax of four per centum upon all in excess of
fifty thousand dollars and up to one hundred thousand dollars,
to a tax of six per centum upon all in excess of one hundred thou-
sand dollars and up to five hundred thousand dollars, to a tax
of eight per centum upon all in excess of five hundred thousand
dollars and up to one million dollars, to a tax of ten per centum
upon all in excess of one million dollars; but no such gift, bequest,
device or distributive share of an estate which shall so pass to or
for the use of the husband, wife, lineal ancestor or lineal descend-
ant of a decedent, unless its fair market value exceed the sum of
en thousand dollars, and no such gift, bequest, devise or distribu-
sive share of an estate which shall so pass to or for the use of the
brother, sister, nephew or niece of a decedent, unless its fair market
value exceed the sum of four thousand dollars, and no other such
gift, bequest, devise or distributive share of an estate unless its fair
market value exceed the sum of one thousand dollars, nor any such
gift, devise or bequest made exclusively for State, county, munici-
pal, charitable, educational or religious purposcs in this State, nor
any such gift, devise or bequest made for the exclusive benefit of
any institution, association or corporation in this State whose prop-
erty is exempt from taxation by the laws of this State, shall be
subject to the provisions of this act.

2. The personal representative of such decedent shall withhold
and pay the whole of said tax, except the tax on the transfer of
such real estate belonging to the estate of the decedent as he ts
not authorized to sell or receive the rents and profits from, and the
sureties on his official bond shall be bound for the payment thereof.

3. Where the personal representative is not authorized to sell
or receive the rents and profits from any real estate belonging to
the estate of his decedent and passing at his death, the taxes upon
the transfer of such real estate shall be paid by the devisee, devi-
sees, or heirs at law of such decedent, or other person or persons
to whom such real estate shall pass, whether by the terms of the
decedent’s will or of any deed or grant made by him in his lifetime
and taking effect at his death, or by operation of the statutes regu-
lating descents and distributions.

4. The tax on the transfer of any property, of whatever nature.
as to which the decedent shall die intestate, or which is not under
the control of a personal representative, shall be paid by the dis-
tributee, distributees, heir or heirs at law of such decedent, or by
the other person or persons to whom such property shall pass under
the laws regulating descents and distributions, or by operation of
any deed or gift made by the decedent in his lifetime and taking
effect upon his death.

5. ‘The corporation or hustings court of a city, or the circuit
court of a county or city, the chancery court of the city of Rich-
mond, the law and chancery court of the city of Norfolk, or the
clerk of the circuit court of a county or city, or the clerk of the cor-

ration or hustings court of the city, before whom the will is pro-
ated or administration is granted, shall determine the amount of
the tax provided for by this act to be imposed upon the transfer of
such property as passes by such will, or as comes into the hands of
such administrator. For the purpose of ascertaining the taxes due
under this act, the court of every city and county having jurisdiction
to admit wills to probate and to grant letters of administration
shall designate one of its commissioners whose duty it shall be, ex-
cept where the estate is administered in a suit, to investigate and
report to the court or clerk, as the case may be, the value of the
estate of every decedent chargeable with a tax under this act, and
the probate of whose will or letters of administration on whose
estate is had in said court or clerk’s office, and report the amount
and kinds thereof and the persons who are entitled to the same:

and the said commissioner shall be allowed for his services for
making said appraisement and report, one-half of one per cent of
said estate so taxable, payable out of said estate as part of the
costs of administration; provided, however, that said compensation
shall in no case be less than five nor more than fifty dollars, except
that for special services rendered the court may allow greater com-
pensation. Upon the report of said commissioner the said court,
or the clerk of any court clothed with probate powers and in the
exercise thereof, shall determine the inheritance taxes, if any, to
be paid on the estate passing by will or administration, and shall
enter of record in the order book of the court or clerk, as the case
may be, the amount of the taxes to be paid and by whom. And
no estate of any decedent, subject to tax under this act, shall be
distributed unless and until the tax has been assessed thereon as
provided by this act. The clerk of the court shall certify a copy
of said order to the treasurer of his county or city and a copy to
the auditor of public accounts, for which service such clerk shall
be paid a fee of two dollars and fifty cents by the personal repre-
sentative of such decedent. The auditor of public accounts shall
charge the treasurer with the tax and the treasurer shall pay the
same into the treasury as collected, less a commission of five per
centum.

6. The amount of the tax on a transfer of any property, of
whatever nature as to which the decedent shall die intestate, or
which is not under the control of a personal representative, shall
be determined in the same manner provided in paragraph five of
this act by the corporation or hustings court of a city, or the
circuit court of a county or city, the chancery court of the city of
Richmond, the law and chancery court of the city of Norfolk, or
the clerk of the circuit court of the county or city, or other court
in which certificate was granted the personal representative for ob-
taining probate of the will or letters of administration; and if
there has been no qualification on the estate of the decedent, the
amount of said tax shall be determined in the same manner pro-
vided in paragraph five of this act by the corporation or hustings
court of a city, or the circuit court of a county or city, the chancery
court of the city of Richmond, the law and chancery court of the
city of Norfolk, or the clerk of the circuit court of the county or
city, or other court, in which qualification might have been had.
Entry shall be made in the order book of the court or clerk, as the
case may be, showing the nature and value of the property so pass-
ing, the amount of the tax determined and by whom the same shall
0e paid. The clerk of the court shall certify a copy of such order
‘o the treasurer of his county or city and a copy to the auditor of
public accounts, for which service the clerk shall be paid a fee of
‘wo dollars and fifty cents by the person or persons to whom such
property passes. The auditor of public accounts shall charge the
reasurer with the tax and the treasurer shall pay the same into the
reasury as collected, less a commission of five per centum.

7. Said taxes shall be assessed upon the actual value of the
property at the time of the death of the decedent. In every case
where there shall be a devise, descent, bequest or grant to take effect
in possession or enjoyment after the expiration of one or more life
estates, the tax shall be assessed on the actual value of the prop-
erty or the interest of the beneficiary therein at the time when he
becomes entitled to the same in possession or enjoyment. The value
of an annuity or a life interest in such property, or any interest
therein less than an absolute interest, shall be determined by the
annuity tables provided for by section twenty-two hundred and
eighty-one of the Code of Virginia. In every case in which it is
impossible to compute the present value of any interest in prop-
erty so passing the court or clerk then engaged in determining the
amount of the said tax shall, subject to approval of the auditor of
public accounts, affect such settlement of the tax as such court or
clerk shall deem to be for the best interest of the Commonwealth,
and payment of the same so agreed upon shall be a full satis-
faction of such taxes.

8. The clerk by whom the tax is to be determined, or the clerk
of the court by which the tax is to be determined, shall serve a
written notice on the attorney for the Commonwealth of the city
or county in which such determination shall be had, and on each
personal representative, devisce, heir at law, or other person to be
charged with taxes by the said clerk or court, at least ten days
before the entry of the order charging the taxes, and said notice
shall set forth the time and place at which such determination shall
be had; but the mailing of said notice to the last known address
of the party to be notified, or to the attorney at law representing
such party, shall be sufficient service under this section.

9. Taxes imposed by the provisions of this act shall be payable
to the treasurer of the county or city in which the amount of such
tax was determined and at the expiration of one year after the
death of the decedent. In all cases in which there shall be a grant,
devise, descent or bequest to take effect in possession or come into
actual enjoyment after the expiration of one or more life estates or
a term of years, the taxes thereon shall be payable by the executors.
administrators or trustees in office when such right of possession
occurs, or, if there is no such executor, administrator or trustee.
by the person or persons so entitled thereto, and at the expiration
of one year after the date when the right of possession accrues to
the person or persons so entitled. If the taxes are not paid when
due a penalty thereon of twenty per centum and interest at the
rate of six per centum per annum on the total amount of taxes
and penalty from the date when the same was due until paid, shall
be added to the amount of said‘ taxes and collected as a part
of same.

10. Property of which a decedent dies seized or possessed sub-
ject to taxes as aforesaid, in whatever form of investment it may
happen to be, and all property acquired in substitution therefor,
shall be charged with a lien for all taxes and interest thereon
which are or may become due on such property: but said Hen shal]

not affect any personal property after the same has been sold or
disposed of to a bona fide purchaser for value by the executors, ad-
ministrators or trustees. The lien charged by this act upon any
real estate or separate parcel thereof may be discharged by the
payment of the taxes due and to become due upon said real estate
or separate parcel, or by an order or decree of the court discharg-
ing said lien and securing the payment to the Commonwealth of
the taxes due or to become due by bond or deposit. The treasurer
may levy upon and sell so much of said property, both real and
personal, as shall be sufficient to pay the taxes and expenses of
sale, or he may rent or lease any portion of the real estate charged
with the taxes for cash sufficient to pay the amount of taxes due.

11. If the amount of the taxes charged is determined by a court,
the person or persons so charged with the taxes shall have the right
of appeal to the supreme court of appeals as in other cases.

12, Any person charged with taxes under this section, aggrieved
by an order of any clerk of a court determining the amount of said
taxes, may, within one year after the date on which such order was
entered, apply for relief to the court of which such clerk is an
officer. An application in writing, setting forth the manner in
which the applicant considers himself aggrieved, shall be filed with
the clerk by whom such order was made, at least ten days before
the hearing of the cause, and notice of the time at which such appli-
cation will be presented to the court shall be served upon the clerk
of the court and the attorney for the Commonwealth, and a copy
of both the application and the notice mailed to the auditor of
public accounts. Said notice shall be served on the clerk and the
attorney for the Commonwealth, and a copy thereof mailed to
the auditor of public accounts at least fifteen days prior to the date
on which the application is presented to the court. The attorney
for the Commonwealth shall defend the application and no order
made in favor of the applicant shall have any validity unless it is
stated therein that such attorney did so defend; that the clerk
charging the taxes, or his successor, was examined as a witness
touching the application; and the facts proved upon such hearing
be certified.

13. If the court be satisfied that the applicant is erroneously
charged in the clerk’s order and that the erroneous charge was not
caused by the failure or refusal of the applicant to furnish an in-
ventory of the property subject to the tax to the clerk of the court,
the court may order that the order of the clerk be corrected. If
the order of the clerk charges more than the proper amount, the
court may order that the applicant be exonerated from the pay-
ment of so much as is erroneously charged, if not already paid,
and if paid, that it be refunded to him. If the order of the clerk
charges less than the proper amount, the clerk shall order that the
applicant pay the proper taxes. A copy of any order made under
this section correcting an erroneous order of a clerk shall be certi-
fied by the court to the auditor of public accounts and the treasurer
of the State.
14. If, from the statement of the facts or other evidence, the
auditor of public accounts shall be of opinion that the order of the
court, or the orders of the clerk, determining the taxes is errone-
ous, he may, within one year from the time such order is made,
file a petition for a rehearing or review of such order; said petition
may be filed in the court by which the order was made or of which
the clerk is an officer, or with the judge thereof in vacation, and
shall be in the name of the Commonwealth, and on the filing of
the same shall operate as a supersedeas and the matter shall there-
upon be reheard or the order reviewed in said court, and witnesses
examined in the same manner as if no previous determination had
been had. The petition shall be presented and the hearing con-
ducted by the attorney for the Commonwealth of the county or
corporation.

At the rehearing the court shall make such order therein ag may
be proper, and should the order of the court be against the Com-
monwealth, the auditor of public accounts may take an appeal to
the supreme court of appeals, and a supersedeas may be granted in
such case in the same manner as now provided by law in cases
other than cases of appeal of right. No costs shall be adjusted
against the Commonwealth on the appeal, but costs may, in the dis-
cretion of the court, be awarded against the clerk of the court who
charged the tax, if the same be erroneous.

15. Of all taxes upon said inheritances paid into the State treas-
ury one half shall be placed to the credit of the public school fund
of the Commonwealth and shall be apportioned according to school
population, and the other half shall be remitted to the counties and
cities in which such taxes are respectively collected, and all of
such taxes shall be used for the primary and grammar grades of
the public free schools of the State and in such counties and cities.

16. All acts and parts of acts inconsistent with this act and
specifically section forty-four of an act entitled an act to raise
revenue for the support of the government and the 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 the sixteenth, nine-
teen hundred and three are hereby repealed.