CHAPTER 609
An Act to amend and reenact §§ 58-101 and 58-121 of the Code of
Virginia, relating to individual income taxes, and taxes upon incom.
from trusts and estates. [H 666

Approved April 1, 1960

Be it enacted by the General Assembly of Virginia:

1. That §§ 58-101 and 58-121 of the Code of Virginia be amended anc
reenacted as follows:

§ 58-101. A tax is hereby annually levied for each taxable yea
upon every resident individual of this State, upon and with respect to hi:
ae net income as herein defined for purposes of taxation, at rates as

ollows:

Two per centum of the amount of such net income not exceeding three
thousand dollars;

Three per centum of the amount of such net income in excess of three
thousand dollars, but not in excess of five thousand dollars; and

Five per centum of the amount of such net income in excess of five
thousand dollars.

A like tax is hereby annually levied for each taxable year at the rates
specified in this section upon and with respect to the entire net income as
herein defined for purposes of taxation, except as herein provided, from
all property owned and from every business, trade, profession or occupa-
tion carried on in this State by natural persons not residents of the State.
But a nonresident individual receiving income from labor performed,
business done or property located in this State and income from labor
performed, business done or property located outside of this State shall
be taxable only upon the amount of income received by such taxpayer
from labor performed, business done or property located within this State.
The remainder of the income received by him shall be deemed nontaxable
by this State. Nonresidents shall be taxed on income from estates and
trusts only as provided in § 58-121.

The taxes levied by this chapter shall be assessed, collected and paid
as provided by law.

This section shall be in force for the taxable year nineteen hundred *
surty-two and for every taxable year thereafter, until otherwise provided

y law.

§ 58-121. In the case of all income of the character described in
paragraphs (4) and (5) of § 58-118, other than such income as is men-
tioned in the preceding section, the tax shall not be paid by the fiduciary,
but there shall be included in computing the net income of each benefi-
ciary his distributive share, whether distributed or not, of the net income
of the estate or trust for the taxable year, or if his net income for such
taxable year is computed upon the basis of a period different from that
upon the basis of which the net income of the estate or trust is computed,
then his distributive share of the net income of the estate or trust for any
accounting period of such estate or trust ending within the fiscal or cal-
endar year upon the basis of which such beneficiary’s net income is com-
puted. In such cases the income of a beneficiary, not a resident, derived
through such estate or trust, shall * not be subject to taxation, except to
the extent that such income is derived from real estate or tangible per-
sonal property located in this State, or from the operation of an unincor-
porated business or trade carried on in this State. In computing the tax
payable by such nonresident beneficiary on income derived from real estate
or tangible personal property located in this State, or from an unincor-
porated business or trade carried on in this State, the credits provided by
§ 58-104 shall be allowed.