Chap. 527.-An ACT to amend and re-enact section 121 of the Tax Code of
Virginia, in relation to recordation taxes. [S B 131]

Approved March 28, 1928

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

Section 121. Recordation tax on deed, deeds of trust, mortgages,
leases, contracts and agreements.—On every deed, except a deed exempt
from taxation by law, which is admitted to record, the tax shall be
twelve cents on every hundred dollars or fraction thereof of the con-
sideration of the deed or the actual value of the property conveyed:

On deeds of trust or mortgages such tax shall be upon the amount
of bonds or other obligations secured thereby ;

On deeds of trust or mortgages upon the works and property of a
railroad or other internal improvement company, lying partly in this
State and partly in another State, such tax shall be upon such propor-
tion of the amount of bonds, or other obligations secured thereby as the
number of miles of the line of such company in this State bears to the
whole number of miles of the line of such company conveyed by such
deed of trust or mortgage;

Upon deeds conveying property lying partly within the State and
partly without this State the tax herein imposed shall apply only to
the value of so much of the property conveyed in the State as is situated
within the State of Virginia, and upon deeds of trust or mortgages
conveying property lying partly within this State and partly without
this State the tax herein imposed shall be only upon such proportion
of the debt secured as the value of the property located within this
State, or which may be brought into this State, bears to the entire
amount of property conveyed by such deed of trust or mortgage ;

The tax on a deed of release shall be fifty cents;

The tax on any deed of partition among joint tenants, tenants in
common or co-partners, shall be fifty cents.

Qn every contract relating to real or personal property, except as
hereinafter provided, which is admitted to record, the tax shall be
twelve cents on every hundred dollars or fraction thereof of such con-
sideration or value contracted for; provided, however, that the tax
for recording a deed of lease for a term of years shall be taxed accord-
ing to the provisions of this section, except where the annual rental,
multiplied by the term for which the lease runs, equals or exceeds the
actual value of the property leased, then the tax for recording the
deed of lease shall be based upon the actual value of the property at
the date of lease.

On every contract or agreement relating to the sale of rolling stock
or equipment (whether the title is reserved in the vendor or not), with
a railroad corporation or other corporation or with a person, firm or
company, admitted to record, the tax shall be twelve cents on every hun-
dred dollars or fraction thereof, of the amount contracted for in such
contract or agreement, except in the case of a railroad corporation lying
partly in this State and partly in another State, in which case the tax
shall be upon such proportion of the amount contracted for as the
number of miles of the line of such railroad corporation in this State
bears to the whole number of miles of line of such railroad corporation.

This section is not to be construed as requiring the payment of any
tax for the admitting to record of any deed of trust, mortgage, contract,
agreement, or other writing supplemental to any deed of trust, mortgage.
contract, agreement, or other writing theretofore admitted to record
and upon which the tax herein imposed has been paid, hereafter called
the original instrument, where the sole purpose and effect of the
said supplemental deed of-trust, mortgage, contract, agreement, or other
writing is to convey, set over, or pledge property, real or personal, in
addition to, or in substitution (in whole or in part) of the property
conveyed, set over, or pledged in the original instrument, to secure or
to better secure the payment of the arrount contracted for in the
original instrument; but in such case there shall be no tax for the
admitting to record of said supplemental deed of trust, mortgage, con-
tract, agreement, or other writing.

No additional recordation tax shall be required for admitting to
record any deed of confirmation or deed of correction where the tax
has been paid at the time of the recordation of the original deed: pro-
vided that, if the said tax already paid is less than a proper tax based
upon the full amount of consideration or actual value of the property
involved in the transaction, an additional tax shall be paid based on
the difference between the full amount of such consideration or actual
value and the amount on which the tax has been paid.

On deeds of trust or mortgages, which provide for an initial issue
of bonds, and thereafter additional bonds, unlimited in amount, if
such deed of trust or mortgage shall provide that as and when such
additional bonds are issued a supplemental indenture shall be recorded
in the office in which the original deed of trust or mortgage is first
recorded, which supplement shall contain a statement as to the amount
of the additional bonds to be issued, then the tax shall be paid upon the
initial amount of bonds when the original deed of trust is recorded
and on each additional amount of bonds when the supplemental in-
denture, relating to such additional bonds, shall be recorded.

The tax on every deed, contract or other instrument shall be de-
termined and collected by the clerk in whose office it is first offered for
recordation, and may thereafter be recorded in the office of any otlier
clerk without the payment of any tax.

Any instrument may be re-recorded free of tax in the same clerk’s
office when the record containing such instrument has been destroved
by fire or otherwise.

2. An emergency existing, this act shall be in force from its passage.