CHAPTER 32

An Act to amend and reenact § 58-86.4 of the Code of Virginia, relating
to tax credits contingent upon revenues received. (8 92)

Approved February 14, 1952

Be it enacted by the General Assembly of Virginia:
1. That section 58-86.4 of the Code of Virginia be amended and reenact-
ed as follows:

Section 58-86.4. The report submitted to the Governor on August
first, nineteen hundred and fifty-two, and on August first of each year
thereafter shall show the total amount of the credits allowed under sec-

tion 58-86.3 or under this section during the fiscal year of the Common-

wealth ending on June thirtieth of the year in which the report is sub-

mitted in addition to showing the information required by section 58-
6.2

If the report submitted to the Governor by the Comptroller on August
first, nineteen hundred and fifty-two * * under the provisions of section
58-86.2 shows that the amounts received into the State treasury during
the fiscal year of the Commonwealth ending on June thirtieth, nineteen
hundred and fifty-two * * from the sources specified in section 58-86.2,
that is to say, General Fund revenues, * * exceeds the amount shown in
the Budget for the biennium beginning July first, nineteen hundred and
fifty-two, submitted to the General Assembly by the Governor, as estimat-
ed to be received from the said sources for the said fiscal year, then, each
individual and fiduciary liable for State income taxes under the pro-
visions of this chapter shall be entitled to a credit * * upon the State
income tax of such individual or fiduciary otherwise payable by him for
the * celendar year nineteen hundred and fifty-one or for his fiscal year
beginning in the calendar year nineteen hundred and fifty-one, * * and
each corporation liable for State income taxes under the provisions of
this chapter shall be entitled to a credit * * upon the State income tax of
such corporation otherwise payable by it for the * calendar year nineteen
hundred and fifty-two or for its fiscal year beginning in the calendar year
nineteen hundred and fifty-two, * * provided the amount of such excess
1g at least five per centum of the amounts shown in the said Budget as
estimated to be received from income taxes on individuals and corpora-
tions for the fiscal year of the Commonwealth ending June thirtieth, nine-
teen hundred and fifty-three. The credit to be allowed shall be the per-
centage, disregarding fractions of one per centum, which the amount of
such eacess is of the amount shown in the said Budget as estimated to be
received from the income tax on individuals and corporations for the
fiscal year of the Commonwealth ending June thirtieth, nineteen hundred
and fifty-three.

If the report submitted to the Governor by the Comptroller on August
first, nineteen hundred and fifty-three, or on August first in any year
thereafter, under the provisions of section 58-86.2 shows that the amounts
received into the State treasury during the fiscal year of the Common-
wealth ending on June thirtieth of the year in which the report is sub-
mitted from the sources specified in section 58-86.2, that is to say, Gen-
eral Fund revenues, plus the total of the credits allowed during such fiscal
year under the provisions of this section exceeds the amount shown in the
biennial Budget submitted to the General Assembly by the Governor cover-
ing the recommended appropriations for such fiscal year, as estimated
to be received from the said sources for the said fiscal year, then, each
individual and fiduciary liable for State income taxes under the provisions
of this chapter shall be entitled to a credit upon the State income tax of
such individual or fiduciary otherwise payable by him for the calendar
year preceding the year in which such report is submitted or for his
fiscal year beginning in such calendar year, and each corporation liable
for State income taxes under the provisions of this chapter shall be en-
titled to a credit upon the State income tax of such corporation other-
wise payable by it for the calendar year in which such report is submitted,
or for its fiscal year beginning in such calendar year, provided the amount
of such excess 1s at least five per centum of the amounts shown in the
said Budget as estimated to be received from income taxes on individuals
and corporations for the fiscal year of the Commonwealth beginning July
first of the year in which the report is submitted. The credit to be allow-
ed shall be the percentage, disregarding fractions of one per centum,
which the amount of such excess is of the amount shown in the said
Budget as estimated to be received from income tax on individuals and
corporations for the fiscal year of the Commonwealth beginning July
first of the year in which the report is submitted.

The word “tax”, as used in this article, includes the automatic penalty
umposed by law on an individual or a fiduciary for his failure to file his
return within the time prescribed by law, but it does not include the
penalty imposed by law for his failure to pay his tax within the time
prescribed by law.

Any individual or fiduciary reporting on a fiscal year basis who was
not entitled to the full twenty per centum income tax reduction credit
proclaimed by the Governor in August, nineteen hundred and fifty-one,
for the taxable year nineteen hundred and fifty, under section 58-86.8,
because one or more of the months of the fiscal year of the individual or
fiduciary fell in the calendar year nineteen hundred and forty-nine, ts
hereby declared to be entitled on his income tax for the taxable year
nineteen hundred and fifty-one, that is to say, for his fiscal year ending
in the calendar year nineteen hundred and fifty-one, to that proportion
of a credit of twenty per centum of such tax as the number of months of
the calendar year nineteen hundred and fifty which was not included in
the whole fiscal year of the individual or fiduciary ending in the calendar
year nineteen hundred and fifty, bears to the whole number of months
of the fiscal year of the individual or fiduciary ending in the calendar
year nineteen hundred and fifty-one. Any corporation reporting on a
fiscal year basis which was not entitled to the full twenty per centum in-
come tax reduction credit proclaimed by the Governor in August, nine-
teen hundred and fifty-one, for the taxable year nineteen hundred and
fifty-one, under Section 58-86.8, because one or more of the months of
the fiscal year of the corporation fell in the calendar year nineteen hun-
dred and fifty, shall be entitled on its income tax for the taxable year
nineteen hundred and fifty-two, that is to say, for its fiscal year ending
in the calendar year nineteen hundred and fifty-two, to that proportion
of acredit of twenty per centum of such tax as the number of months of
the calendar year nineteen hundred and fifty-one which was not included
in the whole fiscal year of the corporation ending in the calendar year
nineteen hundred and fifty-one, bears to the whole number of months of
the fiscal year of the corporation ending in the calendar year nineteen
hundred and fifty-two.

Sections 58-1118 and 58-1119 are applicable to such refunds and
exonerations as may be necessary under this section or Section 58-86.8,
except as to the limitation of two years.