Chap. 144.-An ACT to amend and re-enact Section 198 of the Tax Code of
Virginia, as heretofore amended, in relation to the license taxation of slot
machines, vending machines, and slot machine operators. [S B 69]

Approved March 14, 1938

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

Section 198. Any person, firm or corporation having anywhere in
this State a slot machine of any description into which are inserted
nickels or coins of larger denominations to dispose of articles of mer-
chandise, 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,
a 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
device; except such vending machines as are used solely for the sale
of agricultural products, soft drinks or cigars, on which there is hereby
levied a State license tax of three dollars per year for each machine;
and except such vending machines as are used solely for the sale of
candy and operated on the premises of moving picture or other theaters,
on which there is hereby levied a State license tax of five dollars per
year for each such machine; and except also vending machines opera-
ted on premises for which a tobacco retailers’ license have been obtained
and used solely for the sale of cigarettes, on which there is hereby
levied a State license tax of three dollars per year for each machine;
and except also weighing machines and machines used solely for the
purpose of selling shoe strings, chewing gum, peanuts or postage stamps
on which there is hereby levied a State license tax of one dollar per
year for each machine; and except also miniature pool tables, in the
operation of which nickels or coins of larger denominations are used,
on which there is hereby levied a State license tax of ten dollars per
year on each such coin-operated miniature pool table; and except also
automatic baggage or parcel checking machines or receptacles, which
are used for the storage of baggage or parcels of any character, on
which there is hereby levied a State license tax of fifteen cents per
year for each receptacle that is operated on the coin-in-the-slot principle ;
and on 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; and on vending machines operated by the insertion of one cent
there is hereby levied a State license tax of one dollar 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,
the operation of which is prohibited by law. ‘This section shall not
apply to slot machines that are used solely for the purpose of selling
individual sanitary drinking cups or sanitary drinking cups and natural
water at one cent.

Neither the State Tax Commissioner nor any commissioner of
revenue shall issue any license under this section for slot machines
which are unlawful under the provisions of section forty-six hundred
and ninety-four-a of the Code of Virginia.

The State Tax Commissioner may prepare and furnish to the com-
missioners of the revenue stickers which, when signed by the com-
missioner of the revenue issuing any slot machine license, shall evi-
dence 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 stickers aforesaid shall be prescribed by the State Tax Com-
missioner.

It shall be unlawful for any proprietor, owner, operator, bailee, licen-
see, 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
dollars. 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 ma-
chines, automatic baggage or parcel checking machines, or receptacles,
nor to machines vending cigarettes, soft drinks, shoe strings, chewing
gum, candy, peanuts or postage stamps, which machines are so con-
structed as to do nothing but vend such merchandise, or postage stamps,
or provide service only, nor to operators of vending machines operated
by the insertion of one cent nor to operators of coin operated musical
machines or musical devices that operate on the coin-in-the-slot prin-
ciple; provided further, however, that operators of cigarette vending
machines shall pay a tax of thirteen cents on every one hundred dol-
lars of gross sales, the said tax to be assessed and collected by the State
Department of Taxation after the first day of January and before the
fifteenth day of January following the calendar year in which such
business is done, under rules and regulations prescribed by the said
department, and the said operator shall, before commencing operations
in the State, deposit with the State Tax Commissioner a bond to insure
the proper payment of the taxes, the form, and amount of the bond to
be determined by the State Tax Commissioner and the. security or
surety thereon to be approved by him.

Any person, firm or corporation having any such slot machine or
other device and failing to procure a State license therefor, or other-
wise 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 Common-
wealth.

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 in-
corporated town may impose and collect a license tax upon slot ma-
chines.

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

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