CHAPTER 299

An Act to amend the Code of Virginia by adding a section numbered
58-520.1, to allow certain credits against the annual State franchise

tax umposed on railway corporations. 5 49

[ ]

Approved March 30, 1962

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding a section numbered
58-520.1, as follows:

§ 58-520.1. In order to bring about a greater use of railways, the
credits hereinafter described shall be allowed against the franchise tax
imposed by § 58-519 of the Code of Virginia.

A railway corporation may present to the State Corporation Com-
mission a plan for establishing, improving or continuing passenger service
between stations in Virginia or between stations in Virginia and the Dis-
trict of Columbia. The plan shall describe the equipment to be used, the
services to be rendered, the fares to be charged and the timetable.

If the Commission finds:

1. That by giving good service at low rates the railway will probably
attract enough passengers to cover approximately fifty-five per cent of
the out-of-pocket cost of furnishing the service;

2. That the proposed service is essential to the welfare of Virginia;

3. That the service could not be reasonably or practicably estab-
lished, improved or continued in the absence of the tax relief herein pro-
vided for,

The Commission shall enter an order approving the plan.

An amount equal to the gross revenue derived from the sale of pas-
senger tickets in compliance with an approved plan shall be allowed as
a deduction from the franchise tax imposed by § 58-519 of the Code of
Virginia.

The Commission may order discontinuance of an approved plan on
thirty days’ notice to the railway corporation; and the railway corporation
may discontinue service under an approved plan on thirty days’ notice
to the Commission.