Chap. 366.—An ACT to amend and re-enact section eighteen of the tax law.
as amended by an act approved March twenty, nineteen hundred. and
eighteen, entitled an act to amend and re-enact sections eighteen, nineteen
and twenty of an act entitled an act to raise revenue for the support of the
government and the 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 Apmil
sixteenth, nineteen hundred and three, and acts amendatory thereof, and to
segregate to localities the tax upon shares of stock of banks, banking
associations, trust and security companies. (H B 144]

Approved March 20, 1920.

1. Be it enacted by the general assembly of Virginia, That sec-
tion eighteen of the tax law, as amended by an act approved March
twenty, nineteen hundred and eighteen, entitled an act to amend and
re-enact sections eighteen. nineteen and twenty of an act entitled an
act to raise revenue for the support of the government and the 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
eigifty-nine of the Constitution, approved April sixteenth, nineteen
hundred and three, and acts amendatory thereof, and to segregate to
localities the tax upon shares of stock of banks, banking institutions,
trust and security companies, be amended and re-enacted so as to read
as follows:

Sec. 18. It shall be the duty of the commissioner of the revenue of
each city of the State, as soon as he receives such report, to assess
upon each stockholder upon such actual value of the shares of stock
owned by him a tax levied by the city council or other governing
bodies thereof of not exceeding one dollar’ on every one hundred
dollars of actual value thereof; provided, that such oity council or
other 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 purposes of local taxation only, the value of any
municipal bonds of that particular municipality held by such bank.
The word “bank” for the purposes of this act shall be so construed as
to include banks, banking associations, trust and security companies.

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 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 twenty-five 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 stockholders 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 board of super-
visors and council of towns or other governing bodies may, in their
discretion, direct such commissioners 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, provided, that any incorporated town
which does not constitute a separate school district shall appropriate
not less than fifty per centum of the fund derived from said taxes,
and may appropriate the whole thereof 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. In pursuance
of the provisions of section one hundred and sixty-nine of the Con-
stitution of Virginia, all shares of stock in such banks are hereby
segregated, set apart, and made subject to taxation only by the coun-
ties, cities and towns of this State; except to the extent of any State
tax which may be imposed upon such shares of stock along with
other property; and except that there shall be and there is hereby
imposed a tax of ten cents on each one hundred dollars of the actual
value of such stock, which shall be applied to the public free schools
of the State, and to be apportioned on a basis of school population.

The commissioners of the revenue shall make out three assess-
ment 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 so delivered to said bank, banking association,
trust or security company, shall be notice to the bank, banking asso-
Clation, trust or security company of the tax assessed against its stock-
holders and each of them, and shall 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 asso-
ciation, trust or security company shall be the first lien upon the
stock standing in his name and upon the dividends thereof due and to
become due, no matter in whose possession found, and shall have
priority over any and all liens by deeds of trust, mortgages, bills of
sale, or other assignments made by the.owner or holder, and take
priority over all liens by execution, garnishment or attachment process
sued out by creditors of the stockholders. The bank, banking associa-
tion, trust or security company shall hold the dividend or other
fund belonging to the stockholder and in its custody, at the time
the assessment list is received or that thereafer shall come under its
control, 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 so disbursed.