Chap. 68.—An ACT to amend and re-enact sections 10 and 11 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 Constitu-
tion, approved April 16, 1903, as amended by an act approved February
19, 1904, as amended by an act approved January 31, 1908, as amended
by an act approved March 14, 1912, as amended by an act approved
March 20, 1914, defining incomes and tax on incomes. (S. B. 21)

Approved February 16, 1915.

1. Be it enacted by the general assembly of Virginia, That sections
ten and eleven of an act entitled an act to raise revenue for the support
ot 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, as amended by an act approved
February nineteenth, nineteen hundred and four, as amended by an act
approved January thirty-first, nineteen hundred and eight, as amended
by an act approved March fourteenth, nineteen hundred and twelve, as
amended by an act approved March twentieth, nineteen hundred and
fourteen, be amended and re-enacted so as to read as follows:

Section 10. The classification under schedule “D” shall be as follows:

The aggregate amount of income, whether received or due but not
received, within the year next preceding the first of January in each
year, subject to the deductions and exemptions herein below recited.

Income shall include:

1st: All rents, except ground rents or rents-charge, salaries, wages,
fees or compensation of whatever kind from professions, vocations or
other services.

2nd: All interest upon notes, bonds or other evidences of debt of
whatever description, of the United States, or any other State or country,
or any corporation, company, partnership, firm or individual; all divi-
dends derived from stocks or other evidences of ownership or interest in
property, but not including dividends paid in stock; all royalties derived
from mines, patents, copyrights, or the possession or use of franchises or
legalized privileges of any kind; and all committees from invested funds
or trusts ; provided, that the proceeds of life insurance policies paid upon
the death of the person insured or payments made by or credited to the
insured, on life insurance, endowment, or annuity contracts, upon the
return thereof to the insured at the maturity of the term mentioned in
the contract, or upon surrender of contract, shall not be included. as
income.

38rd: All profits from the earnings of any partnership or business
done in or out of Virginia, due and paid or accrued, whether apportioned
in any manner or not; and all profits derived from the sale of real or
personal estate.

4th: The amount of sales of live stock and meat of all kinds, less
the value assessed thereon the previous year by the commissioner of the
revenue, except that when live stock has been purchased and sold during
the year since the last assessment, there shall be deducted from the sale
of such live stock the cost of the same. .
5th: The amount of sales of wood, butter, cheese, hay, tobacco, grain
and other vegetables and agricultural productions during the preceding
year, whether the same was grown during the preceding year or not, less
all sums paid for taxes, and for labor, fences, feed, fertilizers and seed
purchased and used upon the land upon which the vegetable and agri-
cultural productions were grown or produced, and the rent of said land
paid by said person, if he be not the owner thereof.

6th: All other gains and profits derived from any source whatever.

There shall be exempt from taxation under this schedule income of
each taxpayer as follows:

a) To an individual, income up to and including the sum of
twelve hundred dollars.

(b) To husband and wife, income up to and including the sum of
eighteen hundred dollars.

(c) For each unmarried child under the age of twenty-one years,
the sum of two hundred dollars.

Provided, that only one deduction of the specified sums aforesaid
shall be made from the aggregate income of any family, except that guar-
dians may make a separate deduction of one thousand dollars in favor
of each ward, out of income coming to such ward.

In addition to the foregoing exemptions, there shall be deducted from
the income of the person assessed the following:

1. All interest on existing personal indebtedness, all taxes, and all
fire insurance premiums, due and paid during the year.

2. All necessary expenses actually paid in carrying on any individual
business, not including personal, living or family expenses, paid during
the year, and not including books, tools, instruments, machinery, appli-
ances, furniture or fixtures or other taxable property purchased, whether
used in connection with the business or not .

3. All losses of property and such as are incurred in lawful busi-
ness, actually sustained during the year, and not compensated for by
insurance or otherwise.

4. All debts due to the taxpayer actually ascertained to be worthless
and actually charged off within the year.

Provided, however, that the first assessment of incomes made under
this amended act shall be for eleven months, viz: from February first.
to December thirty-first.

The auditor shall prepare and furnish to the commissioners of the
revenue necessary forms of interrogatories for the assessment of the
income tax separate and distinct from other forms of interrogatories.

Section 11. On income, as defined in this schedule, the tax shall be
one per centum; and no city, town or county shall levy or assess any tax
on income for municipal or county purposes, and any provision of any
city or town charter in conflict with this act is hereby repealed.

®. The collection of the public revenue being affected, an emergency
is hereby declared to exist, and this act shall be in force from its passage.