Chap. 427.—An ACT to amend the Tax Code of Virginia by adding thereto a new
section numbered 403-a, limiting the time within which any suit, action or other
legal proceeding may be commenced for the collection of taxes or levies assessed
on tangible personal property, and prohibiting any court from requiring the
payment of certain taxes or levies assessed on such personal property in any
legal proceeding not commenced within the period so prescribed. [H B 305]

Approved April 2, 1940

1. Beit enacted by the General Assembly of Virginia, That the
Tax Code of Virginia be amended by adding thereto a new section
numbered four hundred and three-a, which new section shall read as
follows:

Section 403-a. No legal proceeding to be instituted after five
years from the time penalty added in certain cases.—On and after
the effective date of this act no action, suit or other proceeding at law
or in equity shall be commenced in any court of this State, nor shall
any other legal action be taken, by the treasurer or other officer or
agent of any county, city or town, for the collection of any taxes or
levies assessed under the authority of such county, city or town upon
tangible personal property, after the expiration of five years from the
date upon which any penalty was required by law to have been added
to any such taxes or levies so assessed; provided, however, that the
proper authorities of any county, city or town may pursue and enforce
any lien or other legal right arising from and based upon a judgment
or decree, or any lien based upon any other legal proceeding, if such
judgment or decree was obtained or entered in an action, suit or other
proceeding commenced prior to the expiration of the said five years, or
if such other legal proceeding was commenced prior to the expiration
of such five years.

No court in which there shall be pending on the date upon which
this section becomes effective, or in which there may be thereafter
instituted, any proceeding instituted pursuant to the provisions of
section four hundred and three of this Code, shall require any taxpayer
to pay any taxes or levies assessed upon any tangible personal property
if five years shall have elapsed before the institution of such proceeding
from the date upon which any penalty was required by law to have
been added to such taxes or levies.