Chap. 165.—An ACT to amend and re-enact section 426 of the Tax Code of
Virginia in relation to trusts. [S B 175]

Approved March 10, 1928

1. Be it enacted by the general assembly of Virginia, That section
four hundred and twenty-six of the Tax Code of Virginia, be amended
and re-enacted so as to read as follows:

Section 426. Taxable situs of property held in trust in certain cases
and taxation of the income thereon.—Property held in trust by a trustee
who is a resident of this State, shall not be deemed to have a situs
in this State for purposes of taxation, and shall not be assessed for
taxation in this State if the creator of the trust was at the time of the
creation thereof, a nonresident of this State, and if all the beneficiaries
under the trust are also nonresidents. Nor shall the income derived
from any such property be assessed for taxation in this State. If, how-
ever, one or more of the beneficiaries is a resident of this State, the
property, and the income therefrom, shall be assessable for taxation
as if the trustee were a nonresident.