Chap. 82.—An ACT to amend and re-enact section 17, in reference to tax
on banks and trust and security companies, of an act approved January
30, 1912, entitled an act to amend and re-enact sections 75 to 147, in-
clusive, of an act approved April 16, 1903, 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. (H. B. 27)

Approved March 15, 1915.

Be it enacted by the general assembly of Virginia, That section
seventeen, in reference to tax on banks and trust and security companies,
of an act approved January thirtieth, nineteen hundred and twelve,
entitled an act to amend and re-enact sections seventy-five to one hun-
dred and forty-seven, inclusive, of an act approved April sixteenth,
nineteen hundred and three, entitled an act to raise revenue for the
support of the government and public free schools, and to pay the in-
terest on the public debt, and to provide a special tax for pensions as
authorized by section one hundred and eighty-nine of the Constitution,
be amended and re-enacted so as to read as follows:

17. No tax shall be assessed upon the capital of any bank or bank-
ing association organized under the authority of this State or the United
States, nor upon the capital of any trust or security company chartered
by this State, but the stockholders in such banks, banking associations,
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, and the amounts of all
bonds, demands and claims owing by each stockholder.as principal debtor
and not otherwise deducted from his taxable property, but not including
any money that may be due on account of the purchase of securities
which are non-taxable. With this report there shall be filed the affidavit
of each stockholder that the amount of the bonds, demands and claims
stated in said report as owing by him as principal debtor is so owing by
him as principal debtor, that this amount has not been and will not be
otherwise deducted from his taxable property, and that it does not in-
clude any money that may be due on account of the purchase of securi-
ties which are non-taxable. 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 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 it stands, is held in the name of a separate cor-
poration, in which such bank, banking association, trust or securily com-
pany owns all or a majority of the stock, and such real estate be other-
wise 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 corporation bears
to the whole issue of stock in such corporation; and the actual value of
each share of stock shall be its proportion of the remainder. In assess-
ing said shares there shall be deducted from the actual values of the
shares held by the stockholders the amounts of bonds, demands and
claims owing by them as principal debtors and not otherwise deducted
from their taxable property, but not deducting any money that may be
due on account of the purchase of securities which are non-taxable;
provided that such deductions from the assessments of such shares of
any bank, banking association, trust or security company shall not in
any case exceed ten per centum of the total actual value of all its shares
of stock. Each bank, banking association, trust and security company
aforesaid shall at the time it pays the taxes assessed against its shares
of stock as aforesaid pay to each stockholder (not as a dividend, but as
deducted taxes) such an amount or proportionate amounts, if any, as
he may be entitléd to by reason of deducting the amounts of the bonds,
demands and claims owing by him as aforesaid; 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 fif-
teenth, nineteen hundred and twelve, being chapter three hundred and
forty-four of the acts of assembly of nineteen hundred and twelve, en-
titled an act to amend and re-enact section eleven hundred and sixty-
nine of the Code of Virginia as heretofore amended, the assets of such
bank or banking association, or trust or security company, so being
wound up, shall continue to be and constitute 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 assess-
ment shall as to said 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 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 vear 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.