Chap. 142.—An ACT to amend and re-enact sections 17, 18, 19, 20, 21 and
22 of an act entitled an act to raise revenue for the support of the
government and public free schools, and to pay the interest on the
public debt, and to provide a special tax for pensions, as authorized
by section 189 of the Constitution, approved April 16, 1908, and acts
amendatory thereof. (H. B. 82)

Approved March 18, 1915.

1. Be it enacted by the general assembly of Virginia, That sections
seventeen, eighteen, nineteen, twenty, twenty-one and twenty-two of an
act entitled an act to raise revenue for the support of the government and
public free schools, and to pay the interest on the public debt, and to
provide a special tax for pensions, as authorized by section one hundred
and eighty-nine of the Constitution, approved April sixteenth, nineteen
hundred and three, and acts amendatory thereof, be amended and re-
enacted so as to read as follows: )

Section 17%. No tax shall be assessed upon the capital of any bank or
banking association organized under the authority of this State or of the
United States, nor upon capital of any trust or security company char-
tered by this State, but the stockholders in such banks, banking asso-
ciations, trust and security companies shall be assessed and taxed on
their shares of stock therein. Each bank, banking association, trust and
security company aforesaid, on the first day of February in each year,
shall make up and return to the commissioner of the revenue of the
county, city or town, or district in which said bank, banking association,
trust or security company is located, a report in which shall be given the.
names and residences of all its stockholders, the number and actual value
of the shares of stock held by each stockholder. From the total value
of the shares of stock of any such bank, banking association, trust or
security company, which shall be ascertained by adding together its
capital, surplus and undivided profits, there shall be deducted the assessed
value of its real estate otherwise taxed in this State, or if the title to the
building in which any such bank, banking association, trust or security
company does its business, and the land on which its stands, is held in
the name of a separate corporation, in which such bank, banking asso-
ciation, trust or security company owns all or a majority of the stock,
and such real estate be otherwise taxed in this State, then there shall
be deducted from the value of the shares of stock of such bank such
proportion of the assessed value of said real estate as the stock it owns
in such holding corporations bears to the whole issue of stock in such
corporation ; and the actual value of each share of stock shall be its pro-
portion of the remainder. The owners of the shares of stock of such
bank, banking associations, trust or security companies, shall be entitled
to no deduction from the taxable value of their shares because of the
personal indebtedness of such owners or for any other reason whatso-
ever; provided, that it is declared to be the purpose and intent of this
section that when the affairs of any such bank or banking association,
or trust or security company are being wound up under the provisions
of an act approved March fifteenth, nineteen hundred and twelve, being
chapter three hundred and forty-four of the acts of assembly of nineteen
hundred and twelve, entitled an act to amend and re-enact section one
thousand one hundred and sixty-nine of the Code of Virginia, as here-
tofore amended, the assets of such bank or banking association or trust
or security company so being wound up, shall continue to be and con-
stitute the capital of such bank or banking association, or trust or security
company, and that no tax shall be assessed thereon, as such capital.
Returns of such assets as of February first of each year shall be made
up by those having actual custody or control thereof as the same is held
and the commissioner of the revenue shall assess the tax thereon against
those holding said funds at the rate provided for the taxation of money,
and said assessment shall as to such funds be in lieu of all taxes against
those beneficially interested therein, but if any surplus shall remain after
payment of depositors and creditors in full, such surplus, together with
the names and residences of the stockholders and the number of shares
owned by them respectively shall then be reported by the liquidating
officer to the commissioner of the revenue who shall ascertain the fair
market value of such surplus assets and assess against each stockholder
in such bank or banking association, or trust or security company, for
each year for which no tax on stock has been paid, a proportionate tax
on said surplus at the rate, and for the purposes prescribed in section
eighteen of this act; and such tax shall be paid by the liquidating officer
into the treasury before any distribution of such surplus to stockholders.

Section 18. It shall be the duty of said commissioner of the revenue,
as soon as he receives such report, to assess each stockholder upon such
actual value of the shares of stock owned by him a State tax of thirty-
five cents on every one hundred dollars thereof, of which twenty-five
cents shall be applied to the governmental expenses of the State, and
ten cents thereof shall be applied to the support of the public free schools
of the State as provided by law.

It shall likewise be the duty of the commissioners of the revenue of
each city of the State to assess upon such stockholders a tax, to be levied
by the city council or other governing bodies of not exceeding one dollar
and fifteen cents on every one hundred dollars value thereof; provided
that such city council or governing body may in its discretion direct said
commissioners of the revenue to deduct from the value of such shares
of stock of such bank for the purpose of local taxation only, the value
of any,municipal bonds of that particular municipality held by such
bank.

And it shall likewise be the duty of the commissioners of the revenue
in the several counties of the State to assess upon each stockholder a tax
to be levied by the board of supervisors or other governing body of not
exceeding one dollar and fifteen cents on every one hundred dollars of
actual value thereof, for county and district and district school purposes,
except upon the stock of banks located in incorporated towns in which
case the rate shall not exceed forty cents for such purposes; provided, the
sum to be derived from any such district levy shall be expended by said
board only in those districts wherein such bank or banks are located.

And it shall be the duty of the commissioners of the revenue or other
assessing officers of the several incorporated towns in which such bank
or banks are located to assess upon each stockholder a tax, to be levied
by the council or other governing body thereof, of not exceeding seventy-
five cents on every one hundred dollars of actual value thereof for town
purposes. Provided that such boards of supervisors and councils of
towns or other governing body may in their discretion, direct said com-
missioners of the revenue to deduct from the value of such shares of
stock of such bank for purposes of local taxation only, the value of any
county or town bonds of said county or town held by such bank. Pro-
vided that any incorporated town which does not constitute a separate
school district may appropriate the whole or any part of the fund derived
from said tax to be used for school purposes in the school district in which
said town is located.

The said tax shall be in lieu of all other taxes whatsoever for State,
county or local purposes upon the said shares of stock. The said com-
missioner shall make out three assessment lists, give one to the bank,
banking association, trust or security company, send one to the auditor
of public accounts, and retain one. The assessment list delivered to said
bank, banking association, trust or security company, shall be notice to
the bank, banking association, trust or security company, of a tax assessed
against its stockholders, and each of them, and have the legal effect and
force of a summons upon suggestion formally issued and regularly
served. The tax assessed upon each stockholder in said bank, banking
association, trust or security company shall be the first lien upon the
stock standing in his name and upon the dividends due and to become
due thereon, no matter in whose possession found, and have priority
over any and all liens by deeds of trust, mortgages, bills of sale, or other
assignment made by the owner or holder, and take priority over all liens,
by execution, garnishment, or attachment process sued out by creditors
of the stockholder. The bank, banking association, trust or security
company shall hold the dividend or other fund which belongs to the
stockholder, and in its custody at the time the assessment list is received,
or that thereafter shall come under its control, for the use of the Com-
monwealth, and apply the same to the payment of the tax assessed, and
when thus applied shall be acquitted and discharged from all liability
to the stockholder for the money thus disbursed.

Section 19. Each bank, banking association, trust and security com-
pany, on or before the first day of June in each year, shall pay into the
State treasury and to the treasurers of the several counties, cities and
towns respectively, the taxes assessed against its stockholders.

Section 20. Should any bank, banking association, trust or security
cumpany, fail to pay into the treasury the tax assessed against its stock-
holders on or before the first day of June in each year, then, as soon
thereafter as practicable, the auditor of public accounts shall transmit
to the treasurer of the county or city in which said bank, banking asso-
ciation, trust or security company is located, a copy of the assessment
list furnished him by the commissioner of the revenue, and it shall be
said treasurer’s duty to collect the taxes therein assessed and to this end
levy upon the stock of the taxpayer, or so much thereof as is necessary,
to pay said tax and sell the same at public auction for cash, as other
chattels and personal property are sold under execution. He shall give to
the purchaser a bill of sale made under his hand and seal.

Section 21. The bank, banking association, trust or security com-
pany, on presentation by a purchaser of his bill of sale, shall cause the
stock therein described to be transferred to said purchaser, and he shall
take a clear and unencumbered title to the stock purchased. Should the
taxes assessed against said stockholders be not paid or collected as herein-
before provided, the lists aforesaid shall stand and be treated and have
the legal effect of tax tickets regularly made out against each of said
stockholders named in said lists as to which tax the right of levy and
distress has accrued to the Commonwealth, and the treasurer shall pro-
ceed to collect the same by levy, or distress, and possess, all and singular,
the authority and power conferred upon him by law to collect other
State taxes, and be governed by sections six hundred and twenty-two
and six hundred and twenty-three of the Code of Virginia.

Section 22. The bank, banking association, trust or security com-
pany, which shall fail or neglect to comply with each and every pro-
vision of this act, for each separate offense, shall be fined not less than
one hundred nor more than five hundred dollars, which fine shall be
recovered upon motion, after five days’ notice in the circuit, corporation
or hustings court, of the county or city in which the said bank, banking
association, trust or security company is located. Said motion shall be in
the name of the Commonwealth and presented by the attorney for the
Commonwealth, of the court in which the motion is brought or made.
The real estate of all banks, banking associations, trust and security com-
panies shall be assessed on the land books of the commissioners of the
revenue, with the same taxes with which other real estate is assessed.