Chap. 395.—An ACT to amend and re-enact section 198 of the Tax Code of
Virginia, as heretofore amended, relating to slot machines. [fH B 283]

Approved March 30, 1934

1. Be it enacted by the General Assembly of Virginia, That section
one hundred and ninety-eight of the Tax Code of Virginia, as hereto-
fore amended, be amended and re-enacted so as to read as follows:

Section 198. Slot machines——Any person, firm or corporation hav-
ing anywhere in this State a slot machine of any description into whick
are inserted nickels or coins of larger denominations to dispose of arti.
cles of merchandise, or for the purpose of operating devices that operate
on the coin-in-the-slot principle, used for gain, except as a pay telephone
shall pay for every such slot machine or device, as the case may be, <
State license tax of twenty-five dollars per year; except for each coin
operated musical machine or musical device that operates on the coin-
in-the-slot principle, on which there is hereby levied a State license tax
of five dollars per year for each such musical machine or musical de-
vice; except such vending machines as are used solely for the sale of
agricultural products or cigars, on which there is hereby levied a State
license tax of three dollars per year for each machine; except also
weighing machines and machines used solely for the purpose of selling
shoestrings, chewing gum or postage stamps on which there is hereby
levied a State license tax of two dollars per year for each machine; and
except also automatic baggage or parcel checking machines or recep-
tacles, which are used for the storage of baggage or parcels of any
character, on which there is hereby levied a State license tax of twenty-
five cents per year for each receptacle that is operated on the coin-
in-the-slot principle; and on vending and amusement machines operated
by the insertion of one cent there is hereby levied a State license tax
of two dollars per year for each machine; provided, however, that
nothing contained in this section shall be construed as permitting any
such person, firm or corporation to keep, maintain, exhibit or operate
any slot machine or other device, in the operation of which gaming is
permitted by the person in charge thereof. This section shall not apply
to slot machines that are used solely for the purpose of selling indi-
vidual sanitary drinking cups or sanitary drinking cups and natural
water at one cent.

No commissioner of the revenue shall issue any license under this
section unless and until the applicant states on oath that no element of
chance enters into the operation of the machine for which a license is
desired.

The State Tax Commissioner may prepare and furnish to the
commissioners of the revenue stickers which, when signed by the com-
missioner of the revenue issuing any slot machine license, shall evidence
the payment of the license tax ; and it shall be the duty of every licensee
to whom any such sticker is issued by the commissioner of the revenue
to attach the same to the slot machine covered thereby and to keep the
same so attached throughout the license period. The form of the stick-
ers aforesaid shall be prescribed by the State Tax Commissioner.

It shall be unlawful for any proprietor, owner, operator, bailee, li-
censee, or custodian of any slot machine, other than vending machines
which do nothing except to vend merchandise, and other than machines
which provide service only, knowingly to permit any person under the
age of sixteen years to operate the same.

Every person, firm or corporation selling, leasing, renting or other-
wise furnishing a slot machine or slot machines to others, or placing
a slot machine or slot machines with others, shall be deemed to be a slot
machine operator. Every slot machine operator, as herein defined, shall
pay for the privilege an annual State license tax of one thousand dol-
lars. The license tax imposed by this paragraph is not in lieu of, but is
in addition to, the other license taxes imposed by this section; provided,
however, that the slot machine operator’s license tax levied by this
paragraph shall not be applicable to operators of weighing machines,
automatic baggage or parcel checking machines, or receptacle, nor to
machines vending shoestrings, chewing gum, or postage stamps, which
machines are so constructed as to do nothing but vend such merchandise,
or postage stamps, or provide service only. Nor to operators of coin
operated musical machines or musical devices that operate on the coin-
in-the-slot principle.

Any person, firm or corporation having any such slot machine or
other device and failing to procure a State license therefor, or otherwise
violating this section, shall be subject to a fine of not less than fifty
dollars nor more than five hundred dollars for each offense, and such
machine or other device shall become forfeited to the Commonwealth.

In addition to the tax herein imposed, the board of supervisors of
each county and the council or other governing body of any city or
incorporated town may impose and collect a license tax upon such slot
machines, subject to the provisions of this section.

No license tax shall be imposed by the State or any city or town on
or on account of any candy vending machines under the ownership and
supervision of any State commission or State agency.

This section, as hereby amended, shall be in force on and after July
first, nineteen hundred and thirty-four.