Chap. 70.—An ACT to amend and re-enact sections 8 and 9 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, ap-
proved April 16, 1903, as heretofore amended. (S. B. 51)

Approved February 18, 1915.

1. Be it enacted by the general assembly of Virginia, That sections
eight and nine of an act, entitled an act to raise revenue for the sup-
port 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 sixteen, nineteen hundred and three, as heretofore amended, be
amended and re-enacted so as to read as follows:

Section 8. The classification under Schedule C shall be as follows:

First: Bonds, notes and other evidences of debt, including bonds of
other States than Virginia, bonds of counties, cities and towns, located
outside of the State of Virginia, bonds of railroad and canal companies
and other corporations, bonds of individuals and all demands and claims,
however evidenced, whether secured by deed of trust, judgment or ather-
wise, or not so secured.

The commissioner shall require each person, natural or artificial, re-
siding in his district, city or town, to make out and deliver to said com-
missioner a list in detail of the date, amount for which originally given,
but not the name of the debtor, the dates and amounts of the credits
thereon, the balance due, and the time of payment of all bonds, notes
and other evidences of debt owing to such person in excess of one hundred
dollars, and a statement of the aggregate amount of all bonds, notes, and
other evidences of debt under one hundred dollars each. The auditor
of public accounts shall furnish the necessary blanks for such lists and
statements to the commissioner of the revenue.

This list and statement shall be signed and sworn to by the taxpayer
before the commissioner of the revenue or some notary public, or some
person authorized to administer oaths, who shall certify that said list
was signed and sworn to before him. The commissioner shall sign the
lists and determine the value of the bonds, notes, and other evidences
of debt therein enumerated, subject to an appeal from his valuation to
the circuit, county or corporation court. The said list and statement
shall include bonds of railroad and canal companies, bonds of counties,
cities, towns, located outside of the State of Virginia, and bonds of other
states and corporations, bonds of individuals, and all demands and
claims, however evidenced, whether due or not, from debtors residing
out of or within the State, city or county, whether secured by a deed of
trust or by judgments or not, deducting from the aggregate amount
thereof all such bonds, demands or claims not otherwise deducted owing
to others as such principal debtor, and not as a guarantor, endorser or
surety; but not deducting any money that may be due to others on ac-
count of the purchase of securities which are non-taxable; but no bond,
demand or claim constituting a part of the capital as defined in this
act of the business done out of this State, or any capital used by any
merchant or manufacturer, and taxed under this act shall be included
in this section. No credit shall be given for debts due nor deductions
made unless such taxpayer shall append to said list an inventory show-
ing the persons and address to whom said demands or debts are owing
and the amount of each.

The list and statement herein provided for shall be delivered by said
commissioner to the clerk of the circuit, county or corporation court of
his county or city, who shall file the same in his office, properly labeled,
keeping the list for each year separate. If any person, firm or corpora-
tion shall, with a view to evade the payment of taxes, fail or refuse to
make out and deliver under oath such list and statement as herein pro-
vided for of any such bonds, notes or other evidences of debt, then the
emitted evidences of debt shall not be recoverable by action at law or suit
in equity in any of the courts of this Commonwealth or by any legal
process, or by sale under deed of trust, or otherwise, until they shall
have been reported for assessment, and the taxes paid thereon for the
years that they should have been paid, with an addition -of fifty per
centum of the amount of said unpaid taxes; and the failure to make
out such list and statement to the said commissioner shall be taken as
prima facie evidence of the intention to so evade payment of taxes.

But where in any action at law or suit in equity it is ascertained
that there are unpaid taxes and penalties on the evidence of debt sought
to be enforced, and the suitor makes affidavit that he is unable to pay
these taxes and penalty, but is willing for the same to be paid out of
the first recovery on the evidence of debt, the court shall have authority
to enter as a part of any judgment or decreeal order in said proceedings
that the amount of taxes and penalties due and owing shall be paid
to the proper officer out of the first collection on said judgment or decree.

Second: All capital of individuals, including moneys, credits, or
other thing loaned, used or employed in business out of this State.

Third: All capital of corporations, or incorporated joint stock com-
panies not otherwise taxed ; and when all of such capital is taxed by this
State; the shares of such stock in the hands of individual shareholders
shall not be further taxed for State purposes; but real estate belonging
to such corporations and companies shall not be held to be capital, but
shall be listed and taxed as real estate.

Fourth: All capital of individuals invested, used or employed in
any trade or business not otherwise taxed. Moneys and credits actively
used and employed in carrying on the trade or business, materials, goods,
wares, and merchandise on hand and all solvent bonds, notes, demands or
claims made or contracted in the course of business during the preceding
year (but not including any moneys on hand received from loans made
for a period of not more than four months, which shall be owing and
shall have been actually contracted for the necessary conduct of such
business) shall be held to be capital in such trade or business, and shall
uct be taxed otherwise than as such capital; but real estate shall not
be listed as such capital, but shall be listed and taxed as real estate;
provided, however, that nothing herein shall prevent cities and towns
of this Commonwealth from imposing a license tax on merchants, mer-
cantile firms or corporations, based on their purchases or otherwise, in
pursuance of their respective charter or general laws of the State for the
government of cities and towns.

Fifth: The value of the principal of personal estate and credits
other than money under the control of a court receiver or commissioner,
in pursuance of an order, judgment or decree of any court, or in the
hands or under the control of an executor, administrator, guardian,
trustee, agent, or other fiduciary; and the principal of personal estate and
credits other than money deposited to the credit of any suit, and not
in the hands of a receiver or other fiduciary.

Sixth: All money other than money used or employed in any trade
or business not otherwise taxed on deposit with any bank or other cor-
poration or firm or persons, or in the possession or under control of
the owner, whether such money be actually in or out of this State and
belonging to a citizen of this State, which shall include certificates of
deposit of any bank, banking association, trust or security company;
provided, that money as herein defined shall not be liable to taxation
by any of the counties, cities, towns, school districts or other local sub-
divisions of this State. All money under the control of a court receiver
or commissioner in pursuance of an order, judgment or decree of any
court or in the hands or under the control of an executor, administrator,
guardian, trustee, agent, or other fiduciary; and all money deposited to
the credit of any suit, and not in the hands of a receiver or other fiduciary.

Seventh: All shares of stock of corporations or joint stock com-
panies, except such corporations and joint stock companies all of whose
capital is taxed by this State, or which pay a franchise tax in this State,
and banks, banking associations, trust and security companies, and in-
surance companies, which are otherwise taxed in this State.

Highth: All bonds of counties, cities and towns, or other political
sub-divisions of this State.

Section 9. The taxes on intangible personal property shall be as
follows:

On all property embraced in classes one, two, three, four, five and
seven in this schedule there shall be a tax of sixty-five cents on every
hundred dollars of the assessed value thereof, which shall be paid into the
State treasury and applied to the payment of the expenses of the gov-
ernment. And any city in this State‘may levy a tax on such property
assessed to residents therein at a rate not to exceed thirty cents on the
one hundred dollars of assessed valuation thereof; and the board of
supervisors of any county may levy a district road tax on such property
assessed to residents in any magisterial district proposed to be taxed for
district purposes to be used exclusively for the construction and repair
of public roads and bridges located within the magisterial district in
which said levy is laid at a rate not to exceed thirty cents on the one
hundred dollars of assessed valuation thereof, but this clause shall not
be considered to authorize the board of supervisors of any county to
levy such tax against the residents of any incorporated town within such
magisterial district which maintains its own roads; and any incorporated
town in this State which is exempt by statute or by the express provisions
of its charter from the payment of district road taxes, or which main-
tains its own roads free of expense to the magisterial district may levy
a tax on such property assessed to residents therein at a rate not to ex-
ceed thirty cents on the one hundred dollars of assessed valuation thereof.

On all property embraced in class six in this schedule the tax shall
be as provided by law. On all property embraced in class eight in this
schedule there shall be a tax of thirty-five cents on every one hundred
dollars of the assessed value thereof, which shall be paid into the treas-
ury of the State. Provided, however, that from and out of the tax on
all such property paid to and retained by the State for the expenses of
the State government there shall be set aside ten cents on every hundred
dvllars of the assessed value thereof, which shall be applied to the sup-
port of the public free schools of this State. Provided, further, however,
that in the event any taxpayer shall fail, without just cause shown, to
return for taxation any intangible personal property under the pro-
visions of this schedule within the time prescribed by law, and it is
ascertained thereafter that any such property has not been returned for
taxation, it shall be assessed when discovered, and taxed at the full rate
of taxation provided for real estate in this State, which shall include the
State rate and the local rates and levies of the county, district, town or
city wherein the owner or taxpayer has his legal residence. The provi-
sions of this section of this schedule shall apply with equal force to any
person or corporation representing in this State business interests that
may claim a domicile elsewhere, the intent and purpose being that no
non-resident person or corporation, either personally or through any
agent, shall transact business-here without paying to the State a cor-
responding tax with that enacted of its own citizens, and all bills re-
ceivable, obligations or credits and other intangible assets arising from the
business done in this State are hereby declared assessable within this
State and at the business domicile of said non-resident person or cor-
poration, his or its agent or representative.