Chap. 306.—An ACT to amend and re-enact subsection first of section 8 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. (H B 375]

Approved March 20, 1924.

Be it enacted by the general assembly of Virginia, That subsection
first of section eight of an act 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,
approved April sixteenth, nineteen hundred and three, and acts amenda-
tory thereof, be amended and re-enacted so as to read as follows:

Section 8. The classification under schedule ‘‘C’”’ shall be as fol-
lows:

Subsection (1) First: Bonds (except bonds of the United States),
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 corpora-
tions, bonds of individuals and all demands and claims, however evi-
denced, whether secured by mortgage, deed of trust, judgment or other-
wise, or not so secured.

The commissioner shall require each person, natural or artificial,
taxable hereunder, residing in his district or town, to make out and de-
liver to said commissioner 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.

The list and statement shall be signed and sworn to by the tax-payer
before the commissioner of revenue or some notary public, or some per-
son authorized to administer oaths, who shall certify that said list was
signed and sworn to before him. The commissioner shall sign the list
and determine the value of the bonds, notes and other evidences of debt
enumerated, subject to an appeal from his valuation to the circuit
court 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 judg-
ments or not. There shall be no deductions from the amount thereof
on account of any bonds, demands or claims owing to others as principal
debtor, or otherwise. 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 subdivision of this section.

The list and statement herein provided for shall be delivered by said
commissioner to the clerk of the circuit 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 corporation shall have hitherto or shall here-
after with a view of evading the payment of proper taxes, fail or refuse
to make out and deliver such list of his intangible property, or with like
intent list the same less than its true value, then such property when
discovered shall be listed and taxed for the proper amount for each and
every year when it was not so taxed, with an additional penalty of one
hundred per centum of such unpaid taxes, and the failure to make out
such list and statement to the commissioner, or the listing of such in-
tangible personal property with the commissioner at fifty per centum
or less of its actual value, shall be taken as prima facie evidence of the
intention to so evade the payment of taxes.

When in any action at law or suit in equity it 1s ascertained that there
are unpaid taxes and penalties on the evidence of debt sought to be en-
forced, and the suitor makes it appear to the court that he has not paid
or 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 decretal
order in said proceedings that the amount of taxes and penalty due and
owing shall be paid to the proper officer out of the first collection on
said judgment or decree.

In every action at law or suit in equity in a court of record for the
collection of any such bonds, notes or other evidences of debt, the plain-
tiff shall be required to allege in his pleadings or to prove at any time
before final judgment is entered, (1) that such bonds, notes or other
evidences of debt have been reported for taxation and assessed for each
and every year on the first day of February of which he was the owner
of same not exceeding three years prior to that in which the suit or
action is brought; or (2) that such bonds, notes or other evidences of
debt constituted a part of the capital employed in the business of such
taxpayer and were taxed as such; or (3) that the suitor has not paid, is
unable to pay the taxes and penalties but is willing for the same to be

aid out of the first recovery on the evidence of debt; or, (4) that the
bond, note or other evidence of debt sued upon is not taxable hereunder
in the hands of plaintiff; and no judgment or decree of a court of record
shall be valid unless the allegation herein required was made or unless
proof was adduced of the same before final judgment was entered.
Provided, however, that the title to real estate heretofore or hereafter
sold under a deed of trust shall not be drawn in question upon the ground
that the holder of the notes secured by such deed of trust did not list
the same for taxation; and all judgments upon bonds, notes and other
evidences of debt entered before this act shall take effect are hereby
validated, legalized and confirmed, and are declared to have the same
force and effect as if they contained the allegation herein required.