CHAP. 485.—An ACT to amend and re-enact section 28 of an act entitled
an act to raise revenue for the support of the government and public
free schools and to pay interest on the public debt and to provide a
specia] tax for pensions, as authorized by section 189 of the Constitu-
tion of Virginia, approved April 16, 1903, as amended by an act ap-
proved March 18, 19165. (S. B. 249.)

Approved March 22, 1916.

1. Be it enacted by the general assembly of Virginia, That
section twenty-eight of an act entitled an act to raise revenue
for the support of the government and public free schools and
to pay 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 of Virginia, approved April sixteenth.
nineteen hundred and three, as amended by an act approved
March eighteenth, nineteen hundred and fifteen, be amended
and re-enacted so as to read as follows:

Section 28. Tax on railway and canal corporations.—The
State tax on the rolling stock of all corporations operating
railroads by steam, doing business in this State, so far as the
same is taxable in this State, shall be at the rate of one and
three-fifths per cent, of the assessed value thereof, to be ap-
plied to the support of the government of this State and there
shall be no local levies assessed on such rolling stock.

The State tax on the intangible personal property as as-
sessed in the section next preceding (other than bonds issued
by counties, cities and towns or other political subdivisions of
this State) owned by every railway and canal corporation, shall
be at the rate of sixty-five cents on every hundred dollars of
the assessed value thereof, the proceeds of which shall be ap-
plied to the payment of expenses of the government, and upon
all such intangible personal property there may be local levies
at the rate authorized by law; however, such rate not to exceed
thirty cents on every one hundred dollars of the assessed value
thereof, the proceeds of said local levies to be applied as is pro-
vided by law.

The State tax on the money of every railway and canal cor-
poration shall be twenty cents on every one hundred dollars as-
sessed value thereof, one-half of which shall be applied to the
support of the government and one-half of which shall be ap-
plied to the support of the public free schools of this State, and
there shall be no local levies assessed on such money.

The State tax on bonds issued by counties, cities and towns
or other political subdivisions of this State, owned by every
railway and canal corporation shall be at the rate of thirty-five
cents on every one hundred dollars assessed value thereof, the
proceeds of which tax shall be applied to the payment of the
expenses of the government.

The State tax on the real estate, rolling stock (other than
the rolling stock of corporations operating railroads by steam)
and tangible personal property of every railway and canal cor-
poration, shall be at the rate of ten cents on every one hundred
dollars assessed value thereof, the proceeds of which shall be
applied to the support of the public free schools of this State,
and on such real estate, rolling stock (other than the rolling
stock of corporations operating railroads by steam) and tan-
gible personal property there shall be local levies at the same
rate or rates as are assessed upon other real estate and tangible
personal property, located in such localities, the proceeds of
which local levies shall be applied as is provided by law.

Every such railway or canal corporation shall pay to the
State an annual State franchise tax equal to one and one-fourth
per centum upon the gross transportation receipts, hereinafter
specified, for the privilege of exercising its franchise in this
State, which, with the taxes hereinbefore provided for, shall be
1n lieu of all taxes or license charges whatsoever, upon the fran-
chises of such corporation and the shares of stock issued by it,
and upon all its property, as hereinbefore provided; provided,
that nothing herein contained shall exempt such corporation
from the annual fee required by section one hundred and fifty-
seven of the Constitution or from assessment for street and
other local improvements, which shall be authorized by law,
or from the county, city, town, district or road levies herein-
after provided for other than a franchise tax; and provided,
further, that nothing herein contained shall annul or interfere
with, or prevent, any contract or agreement by ordinance be-
tween street railway corporations and municipalities as to com-
pensation for the use of the streets or alleys of such municipal-
ities by such railway corporation; and provided, further that
the case of any railway or canal corporation operated wholly
within this State whose actual operating expenses exceed its
gross transportation receipts, the annual State franchise tax
shall be equal to one and one-eighth per centum upon the gross
transportation receipts.

The amount of such franchise tax shall be equal to one and
one-fourth per centum of the gross transportation receipts of
such corporation for the year ending June thirtieth of each
year, to be ascertained by the State corporation commission in
the following manner:

(a) When the road or canal of the corporation lies wholly
within this State, the tax shall be equal to one and one-fourth
per centum of the entire gross transportation receipts of such
corporation.

(b) When the road or canal of the corporation lies partly
within and partly without this State, or is operated as a part
of a line or system extending beyond this State, the tax shall
be equal to one and one-fourth per centum of the gross trans-
portation receipts earned within this State, to be determined
as follows:

By ascertaining the average gross transportation receipts
per mile over its whole extent within and without this State,
and multiplying the result by the number of miles operated
within this State; provided, that from the sum so ascertained
there may be deducted a reasonable sum because of any excess
of value of the terminal facilities or other similar advantages
situated in other States over similar facilities or advantages
situated in this State.

The real and personal property (other than the rolling
stock of corporations operating railroads by steam) of such
corporation, and other than its franchise, shall be assessed on
the valuation fixed by the State corporation commission with
county, city, town, district and road levies at the same rate as
real and personal property of natural persons are assessed
with such levies.

No State tax, county, city, town, district or road levy shall
be laid on the net income of any railway or canal corporation.
nor shall any county, city, town, district or road levy be laid
on the gross transportation receipts of any such company.

All the taxes and levies shall, until paid, be a lien upon the
property within this State of the corporation owning the
same, and take precedence of all other liens or encumbrances.

Any such railway or canal corporation, or the State or any
county or city at the instance of the attorney-general for the
State or the Commonwealth’s attorney for any county or city,
aggrieved by the assessment and ascertainment of such taxes,
may within thirty days after receiving a certified copy thereof,
apply for relief to the circuit court of the city of Richmond.
Notice of the application setting forth the grounds of com-
plaint, verified by affidavit if the appeal be taken by any such
railway or canal corporation shall be served on the State cor-
poration commission, and on the attorney-general, whose duty
it shall be to represent the Commonwealth, or if the appeal be
taken by the State or any county or city, notice of the applica-
tion, setting forth the grounds of complaint, shall be served on
such railway or canal corporation. If the court be of opinion
that the assessment or tax is excessive, it shall reduce the same,
but if of the opinion that it is insufficient it shall increase the
same. Unless the applicant paid the taxes under protest when
due, the court, if the decision is adverse to the applicant shall,
in disallowing the application, give judgment against it for
the taxes assessed by the State corporation commission, and
for a sum, by way of damages, equal to interest at the rate of
one per centum per month, upon the amount of taxes from
the time the same were payable. If the decision is in favor of
such railway or canal corporation, in whole or in part, appro-
priate relief shall be granted, including the right to recover any
excess of taxes that may have been paid, with legal interest
thereon, and the legally taxable costs of said application from
the State or local authorities, or both, as the case may be, the
judgment to be enforced by mandamus or other proper pro-
cess issuing from the court finally adjudicating the application.
If the decision be in favor of the State, or any county or city,
appropriate relief shall be granted and the court shall enforce
its judgments by mandamus or other proper process.

The supreme court of appeals may, subject to the provisions
of article six of the Constitution, allow a writ of error to either
party. Provided, however, that any steam railway company in
which nine-tenths of the stock of such company is owned by a
city or county of this State and which is operated at a loss,
_ pay to the State an annual State franchise tax of only five

ollars.