Chap. 520.—An ACT to provide for the assessment and taxation of stocks and
bonds and other evidences of debt in anywise held or owned by railway and
canal companies chartered under the laws of Virginia for 1928 and succeed-
ing years; and to provide when such companies shall not be assessed with
stocks, bonds and other evidences of debt omitted from assessment tor the
year 1927 and preceding years. [H B 331]

Approved March 28, 1928

1. Be it enacted by the general assembly of Virginia, That in mak-
ing assessments for the year nineteen hundred and twenty-eight, and
succeeding years, under classes eight and nine of section two hundred
and fifteen of an act entitled an act to revise, arrange, and consolidate
into one act the general tax and revenue statutes of the Commonwealth.
which act shall constitute and be designated and cited as the Tax Code
of Virginia, passed by the nineteen hundred and twenty-eight session
of the general assembly of Virginia, or any act or acts amendatory
thereof or supplemental thereto, or under any act providing that the
stocks, bonds, and/or other evidences of debt of other corporations,
or individuals or firms held by any railway or canal company chartered
by or organized under the laws of Virginia (hereinafter sometimes
called the reporting company) and/or that the stocks and bonds
and/or other evidences of debt of any person or corporation belonging
to any such railway or canal company, in excess of its indebtedness,
whether the same be held in trust or otherwise by some other person,
firm, or corporation, within or without this State, the State corporation
commission shall not assess any railway or canal company chartered
by or organized under the laws of Virginia with any of the following
items, Viz:

(a) Stocks, bonds, and/or other evidences of debt issued by the
reporting company or a railroad, bridge, ferry, fuel supply company
serving the reporting company exclusively, freight or passenger station,
or other terminal corporation when the same is operated by the re-
porting company, or of equipment trust companies leasing equipment
to the reporting company exclusively, or of any steamboat or steam-
ship company operated as a part of or in connection with the trans-
portation service of the reporting company all of whose gross trans-
portation receipts are included in, and constitute a part of the gross
transportation receipts upon which the railway company’s franchise
tax is assessed, or of companies whose gross transportation receipts
are included in those reported by the reporting company for the cal-
culation of the franchise tax imposed by this State upon reporting
company, companies manufacturing or repairing equipment exclusively
for the owner company, at actual cost.

(b) Stocks, bonds, and/or other evidences of debt issued by a
railroad, refrigerator car company, bridge, ferry, freight or passenger
station, or other terminal corporation when the same is operated by the
reporting company and another, or other railway or canal companies,
or as joint carrier facilities for the reporting company and another, or
other railway and canal companies, though operated as a separate
operating company.

(c) Bonds, and/or other evidences of debt guaranteed as to princi-
pal and interest by the reporting company.

(d) Stocks, bonds, and/or other evidences of debt issued by a
non-operating carrier corporation whose physical properties have been
conveyed to the reporting company, which carries said stocks, bonds,
and/or other evidences of debt on its books as a matter of record.

(e) Stocks, bonds, and/or other evidences of debt of a carrier cor-
poration whose physical properties, or the greater part thereof are sub-
ject to sale at the instance of the reporting company by virtue of its
holding past due obligations constituting more than fifty-one per cent
(51%) of the obligations of such debtor carrier corporation secured
by a mortgage or deed of trust on such physical properties.

If and so long, however, as the shares of stock issued by foreign
corporations held or owned by a natural person resident in Virginia
are not taxed, such shares of stock held or owned by a railway or canal
company, chartered by or organized under the laws of Virginia, shall
not be taxed.

2. That in making such assessments the total value of the assessable
stocks, bonds, and/or other evidences of debt of other corporations
and individuals and firms held by the reporting company and the
stocks, bonds, and/or other evidences of debt of any person or cor-
poration belonging to such reporting company, in excess of its in-
debtedness, whether the same be held in trust or otherwise by some
other person, firm, or corporation, within or without this State, shall
be ascertained ; and when the road or canal of the reporting company
lies wholly within this State the entire assessed value of the stocks of
other corporations, associations, or joint stock companies and bonds
and/or other evidences of debt, other than those of the corporation
itself, held, owned and controlled by such reporting company, shall be
taxed, but when the road or canal of the railway or canal company
lies partly within and partly without this State or is operated as a
part of a line or system extending beyond this State the proportion of
the assessed value of such stocks, bonds, and/or other evidences of
debt, which shall be assessed and taxed in the State of Virginia, shall
be such a proportion of the entire assessed value thereof, so assessed
as aforesaid, as the number of miles of such railroad or canal com-
pany, line or system operated within this State bears to the number of
miles of such railway or canal company, line or system operated within
and without this State. |

3. No municipal, county, district or State taxes for the year nine-
teen hundred and twenty-seven, or any year prior thereto, shall be
levied on, or assessment made of, any stocks, bonds and other evi-
dences of debt of other corporations and individuals and firms, held
by a railway or canal company chartered under the laws of this State,
which have been omitted from assessment, except as may be hereafter
provided by the general assembly of Virginia.