Chap. 391.—An ACT to amend and re-enact sections 18, 19 and 20 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 189 of the
Constitution, approved April 16, 1903, and acts amendatory thereof, and
to segregate to localities the tax upon shares of stock of banks, banking
associations, trust and security companies. {(H B 114]

Approved March 20, 1918.

1. Be it enacted by the general assembly of Virginia, That
sections eighteen, nineteen and twenty 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 pro-
vide a special tax for pensions, as authorized by section one hundred
and eighty-nine of the Constitution, approved April sixteenth, nine-
teen hundred and three, and acts amendatory thereof, be amended
and re-enacted so as to read as follows:

Section 18. It shall be the duty of the commissioner of the reve-
nue of each city of the State, as soon as he receives such report, to
assess upon each stockholder upon such actual value of the shares of
stock owned by him a tax to be levied by the city council or other
governing bodies thereof of not exceeding one dollar and twenty-five
cents on every one hundred dollars of actual value thereof; pro-
vided, that such city council or other governing body may, in its
discretion, direct said commissioners of the revenue to deduct from
the value of such shares of stock of such bank, for the purposes of
local taxation only, the value of any municipal bonds of that par-
ticular municipality held by such bank. The word “banks” for
the purposes of this act shall be so construed to include banks, bank-
ing associations, trust and security companies.

It shall likewise be the duty of the commissioners of the revenue
in the several counties of the State to assess upon each stockholder
a tax to be levied by the board of supervisors or other governing
body of not exceeding one dollar and twenty-five cents on every one
hundred dollars of actual value thereof, for county and district
and district school purposes, except upon the stock of banks located
im incorporated towns 1n which case the rate shall not exceed twen-
ty-five cents for such purposes; provided the sum to be derived from
any such district levy shall be expended by said board only in those
districts wherein such bank or banks are located.

And it shall be the duty of the commissioners of the revenue or
other assessing officers of the several incorporated towns in which
such bank or banks are located to assess upon each stockholder, a
tax, to be levied by the council or other governing body thereof, of
not exceeding one dollar on every one hundred dollars of actual
value thereof for town purposes. Provided, that such boards of
supervisors and councils of towns or other governing bodies may,
in their discretion, direct such commissioners of the revenue to de-
duct from the value of such shares of stock of such bank for pur-
poses of local taxation only, the value of any county or town bonds
of said county or town, held by such bank; provided, that any in-
corporated town which does not constitute a separate school district
shall appropriate not less than fifty per cent of the fund derived
from said taxes, and may appropriate the whole thereof to be used
for school purposes in the school district in which said town is
located.

The said tax shall be in lieu of all other taxes whatsoever for
State, county or local purposes upon the said shares of stock. In
pursuance of the provisions of section one hundred and sixty-nine
of the Constitution of Virginia, all shares of stock in such banks
are hereby segregated, set apart, and made subject to taxation only
by the counties, cities and towns of this State; except to the extent
of any State tax which may be imposed upon such shares of stock
along with other property; and except that there shall be and there
is hereby imposed a tax of ten cents on each one hundred dollars
of the actual value of such stock, which shall be applied to the
support of the public free schools of the State and to be apportioned
on a basis of school population.

The commissioners of the revenue shall make out three assess-
ment lists, give one to the bank, banking association, trust or secur-
ity company, send one to the auditor of public accounts, and retain
one. The assessment list so delivered to said bank, banking asso-
ciation, trust or security company shall be notice to the bank, bank-
ing association, trust or security company of the tax assessed against
its stockholders and each of them, and shall have the legal effect
and force of a summons upon suggestion formally issued and regu-
larly 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 thereof
due and to become due, no matter in whose possession found, and
shall have priority over any and all liens by deeds of trust, mort-
gages, bills of sale, or other assignment made by the owner or holder,
and take priority over all liens by execution, garnishment or attach-
ment process sued out by creditors of the stockholder. The bank,
banking association, trust or security company shall hold the divi-
dend or other fund belonging to the stockholder and in its custody
at the time the assessment list 1s received or that thereafter shall
come under its control, and apply the same to the payment of the
tax assessed, and when thus applied shall be acquitted and dis-
charged from all lability to the stockholder for the money so dis-
bursed.

Section 19. Each bank, banking association, trust or security
company, on or before the first day of June in each year, shall pay
to the treasurers of the several counties, cities and towns, respective-
ly, the tax assessed against its stockholders.

Section 20. Should any bank, banking association, trust or se-
curity company fail to pay the tax assessed against its stockholders,
as provided by this act, on or before the first day of June in each
year, then, as soon thereafter as practicable the auditor of public
accounts shall transmit to the treasurer of the county or city in
which said bank, banking association, trust or security is located the
copy of the assessment list furnished him by the commissioner of
the revenue, and it shall be said treasurer’s duty to collect the taxes
therein assessed, and to this end to levy upon the stock of the tax-
payer or so much thereof as is necessary to pay said tax, and sell the
same at public auction for cash as chattels and other personal prop-
erty are sold under execution. He shall give to the purchaser a bill
of sale made under his hand and seal.

9. All acts or parts of acts in conflict with this act are hereby
repealed. :