Chap. 305.—An ACT to amend and re-enact section 44 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, approved April 16,
1903, as heretofore amended, and to provide additional compensation for the
auditor of public accounts. [H B 223]

Approved March 20, 1924.

1. Be it enacted by the general assembly of Virginia, That section
forty-four 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 one hundred and eighty-nine of the Constitution, approved April
sixteenth, one thousand nine hundred and three, as heretofore amended,
be amended and re-enacted so as to read as follows:

Section 44. Tax on inheritances. Subsection (1) Classification of
beneficiaries; rates of tax; exemptions.—All property within the juris-
diction of the Commonwealth, real, personal and mixed, and any inter-
est therein, whether belonging to inhabitants of the Commonwealth or
not, which shall pass by will, or by the laws regulating descents and dis-
tributions, or grant or gift (except in case of a bona fide purchase for
full consideration in money or money’s worth) made or intended to take
effect in possession or enjoyment after the death of the grantor, or
grant or gift made in contemplation of death, and all grants or gifts
made within one year next preceding the death of the decedent shall be
deemed prima facie to have been made in contemplation of death,
whether absolutely or in trust, except to or for the use of (class A) the
husband, wife, lineal ancestor or lineal descendant of a decedent, or to
or for the use of (class B) the brother, sister, nephew, or niece of a
decedent, shall be subject to a tax of five per centum of the actual value
of so much thereof as is in excess of one thousand dollars and not in ex-
cess of twenty-five thousand dollars, to a tax of seven per centum upon
all in excess of twenty-five thousand dollars and up to fifty thousand
dollars to a tax of nine per centum upon all in excess of fifty thousand
dollars and up to one hundred thousand dollars, to a tax of twelve per
centum upon all in excess of one hundred thousand dollars and up to
five hundred thousand dollars, and to a tax of fifteen per centum upon
all in excess of five hundred thousand dollars; and such property which
shall so pass to or for the use of a member of class A shall be subject to
a tax of one per centum of the actual value of so much thereof as is in
excess of ten thousand dollars and not in excess of fifty thousand dollars,
to a tax of two per centum upon all in excess of fifty thousand dollars
and up to one hundred thousand dollars, to a tax of three per centum
upon all in excess of one hundred thousand dollars and up to five hun-
dred thousand dollars, and to a tax of four per centum upon all in excess
of five hundred thousand dollars and up to one million dollars, and to a
tax of five per centum upon all in excess of one million dollars; and such
property which shall so pass to or for the use of a member of class B
shall be subject to a tax of two per centum of the actual value of so much
thereof as is in excess of four thousand dollars and not in excess of
twenty-five thousand dollars, to a tax of four per centum upon all in
excess of twenty-five thousand dollars and up to fifty thousand dollars,
to a tax of six per centum upon all in excess of fifty thousand dollars
and up to one hundred thousand dollars, to a tax of eight per centum
upon all in excess of one hundred thousand dollars, and up to five hun-
dred thousand dollars, and to a tax of ten per centum upon all in excess
of fivejhundred thousand dollars; but no such gift, bequest, devise, or
distributive share of an estate which shall so pass to or for the use of the
husband, wife, lineal ancestor or lineal descendant of a decedent, unless
its actual value exceeds the sum of ten thousand dollars, and no such
gift, bequest, devise or distributive share of an estate which shall so pass
to or for the use of the brother, sister, nephew or niece of a decedent,
unless its actual value exceed the sum of four thousand dollars, and no
other such gift, bequest, devise or distributive share of an estate unless
its actual value exceed the sum of one thousand dollars, nor any such
gift, devise or bequest made exclusively for State, county, or municipal
purposes in this State, or charitable, educational or religious purposes
within this State, nor any such gift, devise or bequest made for the ex-
clusive benefit of any institution, association or corporation in this
State whose property is exempt from taxation by the laws of this State,
shall be subject to the provisions of this act ; provided, however, that the
tax shall be determined upon the aggregate actual value of all property
within the jurisdiction of the Commonwealth, as aforesaid, which shall
pass from the decedent to any beneficiary, by will or by the laws regu-
lating descents and distributions, or by grant or gift made or intended to
take cffect in possession or enjoyment after death of the grantor or by
grant or gift made in contemplation of death, or by any number or all of
such methods of transmission; and provided, further, that where any
beneficiary has died or may hereafter die within one year after the death
of the decedent and before receiving his or her share of the estate to
which ke or she is entitled, and taxes on said share have not been assessed
and paid, then such share shall be taxed only once and the tax shall be
asscssed on the property received from such share by each beneficiary
thereof as if there had been no intermediate beneficiary; and provided,
further, that this act shall not apply to the personal property of a non-
resident decedent. But it is expressly provided that the total tax on
all the shares of the beneficiaries of an estate shall not in any case exceed
the sum of four million dollars in the aggregate; and in any case where,
but for this limitation, the total tax would exceed the sum of four million
dollars, the tax shall be computed in accordance with the rates herein-
before prescribcd, and the share of each beneficiary taxable hereunder
shall be liable for such proportion of the tax so computed as the said
sum of four million dollars bears to the total tax which would be assess-
able against the shares of all beneficiaries except for the said limitation.
Subsection (2) Tax to be paid by personal representative; excep-
tion; liability of surety —The personal representative of such decedent
shall withhold and pay the whole of said tax, except the tax on the trans-
fer of such real estate belonging to the estate of the decedent as he is
not authorized to sell or receive the rents and profits from, and the sure-
ties on his official bond shall be bound for the payment thereof, and the
part of the tax so paid by the personal representatives assessed to the
several beneficiaries shall be charged against their respective shares in
the distribution of the estate, unless the will directs otherwise.
Subsection (8) Cases in which tax to be paid by devisee, devisees
or heirs at law.— Where the personal representative is not authorized
to sell or receive the rents and profits from any real estate belonging
to the estate of his decedent and passing at his death, the taxes upon
the transfer of such real estate shall be paid by the devisee, devisees, or
heirs-at-law of such decedent, or other person or persons to whom such
real estate shall pass, whether by the terms of the decedent’s will or of
any grant or gift made by him in his life time and taking effect at his
death, or of any grant or gift made by him in contemplation of death,
or by operation of the statutes regulating descents and distributions.
Subsection .(4) Cases in which tax to be paid by legatee, legatees,
distributee, distributees, heir or heirs-at-law.—The tax onthe transfer
of any property, of whatever nature, which is not under the control of
a personal representative, shall be paid by the legatee, legatecs, distrib-
utee, distributees, heir or heirs-at-law of such decedent, or by the other
person or persons to whom such property shall pass under the laws regu-
lating descents and distributions, or by operation of any grant or gift
made by the decedent in his life time and taking effect upon his death, or
by any grant or gift made by him in contemplation of death.

Subsection (5) Report by personal representative.—The personal
representative of every decedent whose gross estate is in excess of one
thousand dollars shall, within four months after the death of the de-
cedent, report under oath, to the xuditor of public accounts, on forms
provided for that purpose, an itemized schedule of all the property (real,
personal and mixed) of the decedent; the actual value thereof, at the
time of the death of the decedent; the name or names of the persons to
receive the same and the actual value of the property that each will
receive; the relationship of such persons to the decedent, and the age of
any persons who receive a life interest in the property, and any other in-
formation which the auditor may require.

Subsection (6) Reports of estates on which no qualification is
had.—Every beneficiary of estates of over one thousand dollars gross
value on which no qualification is had, shall within four months after
the death of the decedent, report under oath to the auditor of public
accounts, on forms provided for that purpose, an itemized schedule of
all property (real, personal and mixed) received or to be received by
such beneficiary, the actual value of the same at the time of the death
of the decedent and the relationship of such beneficiary to the decedent,
and any other information which the auditor may require; provided,
however, that the auditor may extend the time for the filing of any
report required under this or the preceding subsection, and if the said
report is not filed within the four months or within the time as extended,
the auditor of public accounts shall refer the estate to the proper in-
heritance tax commissioner who shall investigate and report the same in
accordance with the provisions of subsection (8) eight.

Subsection (7) Report by clerks of courts.—The clerk of every
court of every county and city having jurisdiction to admit wills to pro-
bate and to grant letters of administration, shall report to the auditor
of public accounts on forms provided for the purpose, every qualifica-
tion: upon the estate of a decedent in such court or in the clerk’s
office thereof. Such reports shall be filed with the auditor not less
than once every month, and shall contain the name of the decedent; the
date of his death; the name and address of the personal representative,
and the value of the estate upon which the will or administration tax
was paid. Such report shall also contain the name of all decedents
whose wills are probated in the court or before the clerk thereof, upon
which no qualification is had, the name and address of the beneficiaries
under such wills and the value of the property passing under such wills.

Subsection (8) Appointment, duties and compensation of in-
heritance tax commissioner.—For the purpose of ascertaining the taxes
due under this act, the court of every county and city, having jurisdiction
to admit wills to probate and to grant letters of administration, shall
designate one of its commissioners whose duty it shall be to investigate
and report, upon forms provided for the purpose, to the auditor of pub-
lic accounts, the value of the estate of every decedent which shall be
referred to him by the said auditor, the net amount of said estate after
deducting debts and costs of administration and the kinds thereof and
the persons who are entitled to the same and the relationship of such
persons to the decedent; and in cases where the estate is subject to a
tax hereunder the said commissioner shall be allowed for his services
for making said appraisement and report one-tenth of one per centum
of the gross estate so investigated and reported, payable out of said
estate as part of the costs of administration; provided, however, that
said compensation shall in no case be less than five nor more than fifty
dollars, except that for special services rendered, the court by whom the
said commissioner is appointed may by its order entered of record after
reasonable notice to the personal representative, allow greater compen-
sation. In cases referred to such commissioner where it is determined
that no part of the estate is subject to taxation hereunder, the compen-
sation of said commissioner shall be five dollars. The auditor of public
accounts shall refer each estate to the inheritance tax commissioner
appointed by the court in which the will was probated or the letters of
administration were granted, or, if there was no qualification to the in-
heritance tax commissioner appointed by the court in which qualifica-
tion might have been had, unless the auditor is fully satisfied that no
taxes are assessable on the estate. It shall also be the duty of the in-
heritance tax commissioner to notify the auditor of public accounts of
the death of any decedent within the county or city in which such com-
missioner was appointed upon whose estate no qualification is had.

Subsection (9) Tax to be assessed upon actual value of property;
manner of determining value of annuities, life estates and interests less
than absolute interests.—Said taxes shall be assessed upon the actual
value of the property at the time of the death of the decedent. In
every case where there shall be a devise, descent, bequest or grant to
take effect in possession or, enjoyment after the expiration of one or
more life estates, the tax shall be assessed on the actual value of the prop-
erty or the interest of the beneficiary therein at the time when he or she
becomes entitled to the same in possession or enjoyment. The value of
an annuity ora life interest in such property, or any interest therein less
than an absolute interest, shall be determined by the annuity tables
provided for by section fifty-one hundred and thirty-one of the Code of
Virginia. In every case in which it is impossible to compute the present
value of any interest in property so passing the auditor of public ac-
counts may effect such settlement of the tax as he shall deem to be for
the best interest of the Commonwealth, and payment of the same so
agreed upon shall be a full satisfaction of such taxes.

Subsection (10) Manner of determining tax.—The auditor of pub-
lic accounts shall determine all taxes assessable under this act and im-
mediately upon the determination of same, shall forward a statement of
the taxes determined to the person or persons chargeable with the pay-
ment thereof. Within sixty days after the tax has been determined,
any person aggrieved by the determination, may apply to the auditor
of public accounts who may make such corrections of the taxes as he
may determine proper; provided, however, that the rejection of the ap-
plication in whole or in part-by the auditor shall not prevent any person
from applying to the court as hereinafter provided for the correction of
the said taxes.

Subsection (11) Payment of tax; penalty and interest.—Taxes
imposed by the provisions of this act shall be payable to the auditor of
public accounts and at the expiration of one year after the death of the
decedent. In all cases in which there shall be a grant, devise, descent
or bequest to take effect in possession or come into actual enjoyment
after the expiration of one or more life estates or a term of years, the
taxes thereon shall be payable by the executors, administrators or trust-
ees in office when such right of possession accrues, and no distribution
shall be made of the estate until such taxes have been paid, or, if there
is no such executor, administrator or trustee, by the person or persons
so entitled thereto, and at the expiration of one year after the date
when the right of possession accrues to the person or persons so entitled.
If the taxes are not paid when due, one per centum interest for each
month or portion of a month from the date when the same were due
until paid, shall be added to the amount of said taxes and collected as a
part of the same; provided, however, that when the estate of any dece-
dent is being administered in a suit, or when for any other cause, the
amount of such tax is not determinable until more than eleven months
after the death of such decedent, then such penalty shall not be added
until thirty days after such tax is determinable. Upon the payment
of the tax or upon the ascertainment that no tax 1s due, the auditor of
public accounts shall prepare duplicate certificates of payment, or of
ascertainment that no tax is due, as the case may be, one of which shall
be forwarded to the person paying the tax or receiving the property,
and one to the proper clerk who shall record the same in the book 1 in
which accounts of personal representatives are recorded.

Subsection (12) Lien; manner of enforcing payment.—Property of
which a decedent dies seized or possessed subject to taxes as aforesaid,
in whatever form of investment it may happen to be, and all propert
acquired in substitution therefor, shall be charged with a lien for all
taxes and interest thereon which are or may become due on such prop-
erty; but said lien shall not affect any personal property after the same
has been sold or disposed of to a bona fide purchaser for value by the
executors, administrators or trustees. The lien charged by this act up-
on any real estate or separate parcel thereof may be discharged by the
payment of the taxes due and to become due upon said real estate or
separate parcel, or by an order or decree of the court discharging said
lien and securing the payment to the Commonwealth of the taxes due or
to become due by bond or deposit. If the taxes are not paid within one
hundred and twenty days after they shall have become due, the auditor
shall forward a bill for the same to the sheriff of the county or the ser-
geant of the city in which any property belonging to the estate is lo-
cated, and the sheriff or sergeant shall immediately levy upon and sell
so much of the said property, real or personal, as shall be sufficient to
pay the taxes and expenses of sale, including the regular sheriff’s or
sergeant’s fees for sale of property under an execution, or, he may rent
or lease any property charged with taxes for cash sufficient to pay the
amount of taxes due, expenses and fees.

Subsection (13) , Application for relief from taxes determined; no-
tice required; proceedings.—Any person aggrieved by taxes determined
under this act, may, within one year after the date of such determina-
tion, apply for relief to the court in which the will of the decedent was
probated, qualification on the estate of the decedent was had or might
have been had. An application in writing, setting forth the manner in
which the applicant considers himself aggrieved, shall be filed with the
clerk of said court at least ten days before the hearing of the cause,
and notite of the time at which such application will be presented to the
court shall be served upon the attorney for the Commonwealth, and a
copy of both the application and the notice mailed to the auditor of
public accounts by registered mail. Said notice shall be served on the
clerk and the attorney for the Commonwealth, and a copy thereof mailed
to the auditor of public accounts at least fifteen days prior to the date
on which the application is presented to the court. The attorney for
the Commonwealth, or such other attorney as the auditor may desig-
nate, shall defend the application and no order made in favor of the
applicant shall have any validity unless it is stated therein that such
attorney did so defend; and the facts proved upon such hearing shall be
certified.

Subsection (14) Jurisdiction of court upon hearing of the appli-
cation.—If the court be satisfied that the applicant is erroneously
charged with taxes and that the erroneous charge was not caused by
the failure or refusal of the applicant to furnish an inventory of the
property subject to the tax to the auditor of public accounts, the court
may correct the tax. If the applicant is charged with more than the
proper amount, the court may order that he be exonerated from the
payment of so much as is erroneously charged, if not already paid, and
if paid, that it be refunded to him. If the applicant is charged with
less than the proper amount the court shall order that the applicant pay
the proper taxes. A copy of any order made under this section shall be
certified by the court to the auditor of public accounts.

Subsection (15) Appeal from order of court.—The applicant shall
have the right of appeal from the order of the court to the supreme
court of appeals as in other cases except appeals of right, and if the
supreme court of appeals shall decide that the tax determined by the
lower court is erroneous, the lower court shall have authority to order a
refund of so much of the tax as shall have been erroncously paid.

Subsection (16) Petition for rehearing on behalf of Common-
wealth by auditor of public accounts; proceedings; appeals; costs.—
If, from the statement of the facts or other evidence, the auditor of
public accounts shall be of opinion that the order of the court is errone-
ous, he may, within one year from the time such order fs made, file a
petition for a rehearing or review of such order; said petition may be
filed in the court by which the order was entered or of which the clerk
is an officer, or with the judge or clerk thereof in vacation, and shall be
in the name of the Commonwealth, and on the filing of the same shall
operate as a supersedeas and the matter shall thereupon be reheard or
the order reviewed in said court, and witnesses examined in the same
manner as if no previous determination had been had. The petition
shall be presented and the hearing conducted by the attorney for the
Commonwealth of the county or corporation, or such other attorney as
the auditor may designate. At the rehearing the court shall make such
order therein as may be proper, and should the order of the court be
against the Commonwealth, the auditor of public accounts may take
an appeal to the supreme court of appeals, and a supersedeas may be
granted in such case in the same manner as now provided by law in
cases other than cases of appeal of right. No costs shall be adjudged
against the Commonwealth on the appeal.

Subsection (17) If any person shall fail to perform any duty im-
posed upon him by the provisions of this act the auditor of public ac-
counts shall proceed by petition for mandamus before the appropriate
court to compel performance and upon the granting of such writ the
court shall adjudge all costs of such proceeding against the delinquent
and enter judgment against him in favor of the Commonwealth for such
penalty not exceeding one hundred dollars as the court shall deem
proper.

Subsection (18) Distribution of taxes.—Of all the taxes upon said
inheritances paid into the State treasury, one-third shall be credited to
the general fund of the Commonwealth for the support of the govern-
ment; one-third shall be placed to the credit of the public free schools
of the Commonwealth and shall be apportioned according to school
population; and one-third thereof shall be remitted to the county and
city in which such taxes are respectively collected for school purposes,
and all such school taxes shall be used for the primary and grammar
grades of the public free schools of the State; provided, however, that
if the inheritance taxes placed to the credit of the public free schools of
the Commonwealth for the fiscal years ending September thirtieth,
nineteen hundred and twenty-four, and September thirtieth, nineteen
hundred and twenty-five, shall be less than the amount placed to the
credit of such fund from inheritance taxes during the fiscal year ending
September thirtieth, nineteen hundred and twenty-three; so much of
the one-third credited to the general fund of the Commonwealth as may
be necessary shall be used to make up such deficit.

Subsection (19) Auditors to provide tax forms.—The auditor of
public accounts shall provide such books and forms as are requisite for
the execution of this act.

Subsection (20) Expense of administration.—The expense of the
execution of this act shall be paid by the auditor of public accounts
out of the funds collected hereunder but the auditor shall not under
the authority of this section pay out of said funds the salaries of any
employes and the auditor of public accounts shall receive one thousand
dollars per annum payable out of the funds collected hereunder as com-
pensation for additional duties hereby imposed upon him. ,

Subsection (21) The provisions of this act shall apply to the estate
of every person who shall die on or after April first, nineteen hundred
and twenty-four, and to all estates created by will which shall vest in
interest on or after said date.