Chap. 429.—An ACT to amend the Tax Code of Virginia by adding thereto =
new section to be numbered section 17la, in relation to wholesale merchandise
brokers who sell only to wholesalers or manufacturers, and whose gros:
profits are measured principally by commissions. [S B 276]

Approved March 24, 1928

1. Be it enacted by the general assembly of Virginia, That the
Tax Code of Virginia he amended by adding thereto a new section
to be numbered section one hundred and seventy-one-a, which new
section shall read as follows:

Section 171-a. Brokers——Wholesale merchandise brokers who
sell only to wholesalers or manufacturers, and whose gross profits
are measured principally by commissions.—Every wholesale mer-
chandise broker dealing in food products and other commodities.
who sells only to wholesalers or manufacturers, and whose gross
profits are measured principally by commissions, shall annually pay
for the privilege of doing such business a license tax of fifty dollars.
provided the gross commissions and gross profits of such wholesale
merchandise broker for the preceding year did not exceed one thou-
sand dollars; but when the gross commissions and gross profits
exceeded one thousand dollars, the tax shall be fifty dollars. and
an additional tax at the rate of one dollar on each one hundred dol-
lars, or fraction thereof, of gross commissions and gross profits in
excess of one thousand dollars. The license tax on every such
wholesale merchandise broker beginning business shall be the flat
tax above prescribed, plus a tax in accordance with the foregoing
scale measured by the gross commissions and gross profits which it
is estimated he will receive from the time he commences business
to the following December thirty-first. The license taxes pre-
scribed by this section shall be in lieu of a tax on the capital actu-
ally used or employed by every such wholesale merchandise broker
in the business described in this section. The word “capital,” as
herein used, shall be construed to mean the capital which, but for
this section, would be taxable for State purposes under the laws of
this State. This section shall apply to persons, firms and corpora-
tions. This section shall be in force on and after the first day of
January, nineteen hundred and twenty-nine.