Chap. 115.—An ACT to amend and re-enact Section 198 of the Tax Code of Vir-
ginia, as amended, relating to slot machines. [H 48]

Approved March 2, 1944

Be it enacted by the General Assembly of Virginia:

1. That section one hundred ninety-eight of the Tax Code of Vir-
ginia, as amended, be amended and re-enacted, as follows:

Section 198. (a) Any person, firm or corporation having any-
where in this State a slot machine of any description into which are in-
serted nickels or coins of larger denominations to dispose of articles 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 shot 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 dol-
lars 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 such candy vending machines as are operated on the prem-
ises of any person conducting any other lawful business, on which there
is hereby levied a State license tax of ten dollars per year for each such
machine; and except also vending machines operated on premises for
which a tobacco retailer’s license has 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, peanut candy 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 per-
cel 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 op-
erated 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 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
tor the purpose of selling individual sanitary drinking cups or sanitary
drinking cups and natural water or to machines vending sanitary napkins
or to washing machines.

(b) 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 ninety-
tour-a of the Code of Virginia.

(c) 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 as so attached throughout the license period. The form of the
stickers aforesaid shall be prescribed by the State Tax Commissioner.

(d) It shall be unlawful for any proprietor, owner, operator, bailee,
licensee, 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.

(e) Every person, firm or corporation selling, leasing, renting or
otherwise furnishing a slot machine or slot machines to others, or plac-
ing a slot machine or slot machines with others, shall be deemed to be
a slot machine operator. I*very 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 1s not in lieu of, but
is in addition to, the other license taxes imposed by this section; pro-
vided that the slot machine operator’s license tax levied by this para-
graph shall not be applicable to operators of weighing machines, auto-
matic baggage or parcel checking machines, or receptacles, nor to vend-
ing machines which machines are so constructed as to do nothing but
vend 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 ; nor to operators of viewing ma-
chines or photomat machines; provided further that operators of cigarette
vending machines shall pay a tax of thirteen cents on every one hundred
dollars of gross sales, this 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 busi-
ness is done, under rules and regulations prescribed by the department.
and the 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 ap-
proved by him.

(f{) 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 the
machine or other device shall become forfeited to the Commonwealth.

(g) In addition to the tax herein imposed, the governing body of
any county, city or incorporated town may impose and collect a license
tax upon slot machines.

(h) 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 owner-
ship and supervision of any State commission or State agency.