Chap. 291.—An ACT to amend and re-enact Section 91 of the Tax Code of
Virginia, as heretofore amended, in relation to the taxation of bank and
trust company stock. [H B 263]

Approved March 28, 1938

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

Section 91. Rate of taxation of bank stock; disposition of assess-
ment lists by commissioner of the revenue; limited city and town
taxation of bank stock.—It shall be the duty of the commissioner of
the revenue as soon as he received such report to assess upon each
stockholder. upon the taxable value of the shares of stock owned by
him a tax at the rate of one dollar on each one hundred dollars of
such value of such stock. The said tax shall be in leu of all other
taxes whatsoever for State, county or local purposes upon the said
charge of stock. The commissioner of the revenue shall certify three
assessment lists, transmit one to the department of taxation, one to
the bank and retain one. The assessment list so transmitted to said
bank shall be notice to the bank of the tax assessed against its stock-
holders and each of them, and shall have the legal effect and force
of a summons upon suggestion formally issued and regularly served.
The tax assessed upon each stockholder in said bank shall be the first
lien upon the stock standing in his name and upon dividends thereof
due and to become due, no matter in whose possession found, and
shall have priority over any and all liens by deeds of trust, mortgages,
bills of sale or other assignments made by the owner or holder, and
take priority over all liens by execution, garnishment or attachment
process sued out by creditors of the stockholders. The bank shall
hold the dividend or other fund belonging to the stockholder and in
its custody at the time the assessment list is received or that thereatter
shall come under its control, and apply the same to the payment of
the tax assessed, and when thus applied shall be acquitted and dis-
charged from all liability to the stockholder for the money so dis-
bursed. |

Any city in this State, containing less than ten thousand inhabi-
tants, as shown by the United States census of nineteen hundred and
twenty, in which any bank is located, and any incorporated town in this
State in. which any bank is located, may, by ordinance, require such
bank to deliver to the commissioner of the revenue, or other assessing
officer of such city or town, a copy of the report which such bank is
required by this chapter to furnish to the commissioner of the revenue
of the’ county or city, and any such city may impose a tax not to
exceed forty per centum of the State rate of taxation on each one
hundred dollars of the taxable value of the shares of stock in such
banks so located in such city, and any such town may impose a tax
not to exceed eighty per centum of the State rate of taxation on each
one hundred dollars of the taxable value of the shares of stock in such
bank so located in such town; and it shall be the duty of the commis-
sioner of the revenue, or other assessing officer of such city or town in
which such banks are located, to extend the said tax against the stock-
holders at the rate levied by the council or other governing body of
the said city or town.

Any incorporated town in this State in which is located a branch
of a bank which bank is located in any city in this State containing ten
thousand or more inhabitants, as shown by the United States census
of nineteen hundred and twenty, may, by ordinance, require such bank
to deliver to the commissioner of the revenue, or other assessing offi-
cer of such town, a copy of the report which such bank is required
by this chapter to furnish to the commissioner of the revenue of the
city, and any such town may impose a tax not to exceed eighty per
centum of the State rate of taxation on each one hundred dollars of
such proportion of the taxable value of the shares of stock in such
bank whose branch is so located in such town as the deposits through
such branch bears to the total deposits of the bank as of the beginning
of the tax year; and it shall be the duty of the commissioner of the
revenue, or other assessing officer of such town in which such branch
is located, to extend the said tax against the stockholders at the rate
levied by the council or other governing body of the said town.

Any city in this State containing less than ten thousand inhabitants,
as shown by the United States census of nineteen hundred and twenty,
in which is located a branch of a bank which bank is located in any
city in this State containing ten thousand or more inhabitants, as
shown by the United States census of nineteen hundred and twenty,
may by ordinance, require such bank to deliver to the commissioner
of the revenue, or other assessing officer of such smaller city, a copy
of the report which such bank is required by this chapter to furnish
to the commissioner of the revenue of such larger city, and any such
smaller city may impose a tax not to exceed forty per centum of
the State rate of taxation on each hundred dollars of such proportion
of the taxable value of the shares of stock in such bank whose branch
is so located in such smaller city as the deposits through such branch
bears to the total deposits of the bank as of the beginning of the tax
year; and it shall be the duty of the commissioner of the revenue, or
other assessing officer of such smaller city in which such branch is
located, to extend the said tax against the stockholders at the rate
levied by the council or other governing body of the said smaller city.

Provided, however, that no tax shall be assessed or paid on the
shares of any preferred stock issued by any bank in this State sold
to the Reconstruction Finance Corporation while owned and _ held
by it. It is also provided further that no tax shall be assessed on such
shares so held for the years nineteen hundred and thirty-four or nine-
teen hundred and thirty-five, and any supposed liability for such tax-
ation is hereby released, abated or remitted if any exists whether by
reason of section fifty-two hundred and nineteen of the Revised Stat-
utes of the United States or of the provisions of this section as hereto-
fore enacted, or both.